To receive updates and stay connected to Policy Matters Ohio, sign up here!

Submit
Research & Policy
Policy Matters Ohio

JobWatch: Small Ohio job gains in June after recovering pre-COVID job level in May

July 21, 2023

JobWatch: Small Ohio job gains in June after recovering pre-COVID job level in May

July 21, 2023

State set record low unemployment rate for third month in a row

The takeaway: Ohio added 1,000 jobs in June after fully recovering pre-COVID job levels in May. The state’s unemployment rate set a new record low for the third straight month, reaching 3.4% in June. This is due to a combination of strong job growth and a slightly smaller workforce than before the pandemic. Inflation slowed a full point to 3.0% in June.

The jobs numbers: Seasonally adjusted data released today by the Ohio Department of Job and Family Services (ODJFS) show that Ohio employers added 1,000 jobs over the month, reaching 5,622,500 jobs in June after fully recovering total jobs lost to COVID-19 in May. Data are preliminary and subject to revision, and May’s revision shows an even stronger month, than initially reported with 6,900 more jobs.

“Small job gains last month added to the progress after Ohio hit a major threshold in May by recovering all jobs lost to COVID-19,” said Policy Matters Ohio senior researcher, Michael Shields. “However, those gains have not been shared across the state, with most growth being concentrated in a few communities. A robust recovery from COVID-19 and the recession it caused must include everyone, so work remains to be done.”

The details: Service providing industries have led the jobs recovery, up 27,400 above February 2020 pre-COVID levels. Goods producers are up 3,700. Together, these sectors have offset persistent job shortfalls in state and local public sector jobs. Despite federal jobs gains, government jobs across Ohio remain 22,400 below pre-COVID levels, with a majority of the shortfall in teacher and other education jobs.

Service providers added 3,200 jobs last month and the public sector added 2,000. Goods producers cut 4,200 jobs. Public sector gains were led by 2,400 new jobs in local government, but the summer break from school could mean that the seasonal adjustment has inflated that figure.

“Since teacher jobs make up so much of the local government job shortfall, we’ll be watching to see if those gains stick,” said Shields.

The household survey: The separate household survey showed Ohio’s unemployment rate reached a new record low for the third month running, falling to 3.4% in June. Ohio’s workforce drew 10,000 people in and 17,000 people found jobs, including 7,000 who were already looking. About 82,000 fewer Ohioans (1.4%) are in the workforce than before the pandemic working or job-searching, contributing to Ohio’s exceptional unemployment rate.

“Overall, this job report is great news for workers, especially those at the margins,” said Shields. “For decades, corporations and the wealthiest have held down wages and captured nearly all the new wealth Ohio workers made possible. A tight labor market is vital to help working people to reclaim their share, and to create a jobs landscape that will enable all working people to thrive, regardless of their race. Policymakers at all levels of government should work to maintain high levels of job opportunities and bring them to all communities.”

Tags

2023JobWatchMichael ShieldsWork & Wages

Share This

Close

Photo Gallery

1 of 22

To receive updates and stay connected to Policy Matters Ohio, sign up here!

Submit

No Thanks, Please don't ask again.