Columbus, OH – Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute, commented on the newly released jobs report from the Ohio Department of Job and Family Services. 

“Over the course of 2022, Ohio’s job market started strong and peaked in the summer with an unemployment rate below four percent and a labor force participation rate of 62.5 percent. Since then, the household survey has reported a waning job market, with the unemployment rate climbing and a continued decline in the number of Ohioans looking for work. And while the private sector added 80,000 in 2022, recent job reports present a worrying trend for Ohio. 

“In December’s jobs report, the unemployment rate was stuck at 4.2 percent, while the labor force participation rate fell from 61.3 percent to 61.2 percent. Ohio’s situation contrasts with the national jobs report, which saw unemployment fall to 3.5 percent and the labor force participation rate climb to 62.3 percent.

“Ohio’s payroll survey showed a slightly better picture, with the private sector adding 3,100 jobs. However, revisions to the November jobs report showed that Ohio added 2,500 fewer jobs than initially reported, wiping out nearly all the jobs gained in December. Like the household survey, the payroll survey showed a slowing jobs market compared to the first half of 2022.  

“All the news is not bad. If Ohio’s job market grows as it did in 2022, then Ohio will erase this pre-pandemic shortfall of 60,000 jobs in 2023. To strengthen the job market, Ohio policymakers should use the upcoming budget as an opportunity to implement meaningful tax reform that would encourage businesses to invest and attract families and workers to the Buckeye state. Education reforms in K-12 and higher education are also needed to meet the needs of modern manufacturers and tech companies.”

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