July 18, 2014
Ohio still crawling out of a six figure job deficit, adds 12,700 jobs in June. Unemployment rate steady at 5.5 percent.
For immediate release Contact Hannah Halbert, 614.221.4505
Five years since the end of the 2007 recession and Ohio still in the red
The jobs data released today covers June 2014, a full five years since the end of the 2007 recession. This anniversary brings some positive short-term news to the state. Ohio added 12,700 jobs last month, according to employer survey data released today by the Ohio Department of Job and Family Services (ODJFS). However, Ohio’s long-term job growth trend remains subpar.
“While the gain announced today is one of the largest of the year, it serves to highlight how painfully slow our growth has become and how far we have to go to recovery,” said Hannah Halbert, workforce researcher with Policy Matters Ohio. “This boost improves the picture slightly, but we still have a six-figure job deficit.”
Monthly numbers are always preliminary and subject to revision, making it unwise to make too much of monthly fluctuations. The state still needs 112,800 jobs just to recover those lost to the 2007 recession. The nation, in contrast, surpassed the number of jobs lost to the recession in May. Since the start of the recession, the nation has a job growth rate of 0.3 percent: too slow, but far better performance than Ohio’s rate of -2.1 percent.
The unemployment rate, also released today, is based on a separate ODJFS survey of households. The household survey uses a different sample and definition of employment than the employer survey. Because of these differences the surveys sometimes move in different directions. That is the case for June. The employer survey, discussed above, is generally considered the more accurate measure of jobs.
While the unemployment rate held steady at 5.5 percent, the household survey shows that unemployment fell by 1,000 in June but the survey also reports a 3,000 drop in employment. This meant that the civilian labor force continued to decline, falling another 5,000 in June. Over our five year ‘recovery’, Ohio’s civilian labor force has shrunk by 214,638.
“Ohio has made some gains since the end of the recession, but we continue to lag behind the nation, and too many Ohioans aren’t finding jobs,” said Halbert. “Ohio deserves better.”
Policy Matters Ohio is a nonprofit, nonpartisan state policy research institute
with offices in Cleveland and Columbus.