The takeaway: Ohio has seen strong, consistent job growth this year. Ohio jobs are at a four-year high, with 20.1% more jobs than the low in April of 2020, when the pandemic’s disruption left many Ohioans without work. Despite positive signs for working Ohioans, inflation continued to move in the wrong direction, undercutting wage improvements and continuing economic uncertainties looking ahead to the quickly approaching administration change.

“With one month left in 2024, Ohio saw a month-to-month decrease in jobs only twice this year – first in January, then in August. Substantial losses in August (-6,300) were followed by consistent job growth, concurrent with several interest rate cuts, starting in September. This link suggests lowered rates have afforded Ohio employers greater ability to meet Ohioans’ job demand, which continues to grow.

“The Federal Reserve lowered interest rates another 0.25 percentage points this week, though rate cuts were immediately followed by a statement from the Fed, dashing any hopes of swift, broad cuts in the near future,” said Molly Bryden, researcher with Policy Matters Ohio. “Per the Fed’s report, the outlook for the U.S. economy is uncertain – a sentiment that does not instill much hope for Ohio families working to make ends meet and needing a break from inflation.

“While job and employment numbers are important, Ohio legislators should prioritize policies that raise wages and enhance job quality for lower-paid Ohioans. Next month’s 25-cent minimum wage increase is a start, but a $10.70 minimum wage offers workers the same purchasing power as 2007 – leaving a lot of room for improvement.”

The numbers: Seasonally adjusted data released today by the Ohio Department of Job and Family Services (ODJFS) show that Ohio employers added 5,500 jobs last month, up from downwardly revised 5,679,500 jobs in October to 5,685,000 in November. Monthly numbers are preliminary and subject to revision. Ohio employers have added 54,900 jobs this year to date. September’s growth was less substantial than initial numbers suggested, though on average, Ohio employers have added around 5,000 jobs each month in 2024.

Service providers added the most jobs this month (+3,200), driven by the administrative, support, and waste services sectors (+4,700). Trade, transportation, and utilities employers reported the largest losses (-2,900) across all sectors. Construction employers added 1,500 jobs, though gains in the goods-producing industry (+700) were moderated by the loss of 900 jobs in the manufacturing industry (-400 in durable goods manufacturing, and -500 in nondurable goods).

“Overall, manufacturing jobs have fallen for seven consecutive months, corresponding with consistent rises in the Purchasing Managers Index (PMI), indicating an increasingly strained manufacturing sector in the U.S., which has a strong base in Ohio. The continued rise in inflation could further weaken demand for manufactured goods, exacerbating a contraction in the manufacturing sector.”

The public sector is up 1,600 jobs from last month, adding 700 state and 1,200 local government jobs, with 300 fewer jobs reported in the federal government. The 700 jobs added in state government offset losses from the previous month (-700), which were slightly greater than indicated by preliminary data.

“Public sector job trends have been largely inconsistent in 2024, though federal and local government employment saw a net increase this year to date (+700 and +10,000, respectively), while state government jobs have dropped by 1,700 since the end of 2023. Instability in the public sector is likely to continue, driven by a looming government shutdown – which could become a reality as soon as Saturday, December 21 – and anticipated cuts to federal spending programs. While a government shutdown won’t have an immediate impact on state and local government operations, 83,200 federal employees in Ohio risk delayed paychecks. Temporary suspensions for non-essential programs, like loan programs for housing and small businesses, are also implicated by a shutdown. Political division in Washington, D.C., which led to the rejection of a contentious federal spending bill, has serious implications for effective delivery of public services in the long term.”

The household survey: The separate household survey showed the number of unemployed Ohioans fell by 1,000, as 10,000 Ohioans entered the labor force in pursuit of a job and those employed rose by 10,000. (The number of Ohioans entering the labor force did not entirely offset the increase in employed Ohioans, so the slight drop in unemployment is due to rounding.) While Ohio’s unemployment rate held at 4.3%, the national unemployment rate increased by 0.1 percentage points for the second month in a row, landing the rate at 4.2%.

“The number of Ohioans employed or actively seeking a job continues to trend upward, with an average increase of 9,500 jobseekers each month this year. By contrast, 193,000 U.S. workers left the national labor force, while the number of U.S. workers employed fell by 350,000. Continued growth in Ohio’s labor force, matched by gains in employment, signals a strong statewide economy, compared to national indicators. We’re still cautiously optimistic, although we will continue to monitor these trends along with the incoming administration’s changes to U.S. economic policy.”