The Buckeye Institute: Ohio’s Unemployment Rate Jumped in December
Jan 22, 2016Columbus, OH – Ohio’s unemployment rate jumped to 4.7 percent in December, up from 4.5percent in November. But that’s not as worrisome as it sounds and, overall, 2015 was a solid year for job growth in Ohio.
“Some of the unemployment rate increase is a good sign. People are coming back into the labor force and getting counted as unemployed while they look for work,” said Rea S. Hederman, Jr., director of The Buckeye Institute’s Economic Research Center. “We want people in the workforce, even if it makes the unemployment rate go up temporarily.”
Ohios civilian labor force grew by 16,000 in December to 5,727,000. The important labor participation rate increased slightly to 62.5 percent of the working age population in December.
The good: “Overall, 2015 was a solid year for job growth in Ohio. Nearly every industry added jobs with the notable exception of oil and gas. The mining sector, which includes oil and gas, lost 11,500 jobs, including 1,800 last month. Low energy prices are delivering a hard punch to that industry and its workers,” Hederman said.
The bad: "Ohio still trails the nation in labor force participation, and that's troubling. Over the last year, Ohio's labor force partipation rate declined significantly faster than that the rest of the country. That made our unemployment rate look better than the nation—but for all the wrong reasons We're seeing the reverse in December—a rising unemployment rate because more people are excited about the chance of getting a job."
"The bottom line is Ohio needs to provide more job opportunities so people are drawn back into the workforce, regardless of whether it temporarily bumps up the unemployment rate."
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