Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute, has shared his insights on the latest jobs report from the Ohio Department of Job and Family Services.
Hederman noted, "In April, Ohio’s unemployment rate increased from 3.8 percent to 4 percent compared to the national average of 3.9 percent. This continues a trend seen over the past year, with the national average climbing from 3.4 percent to 3.9 percent and Ohio’s climbing from 3.4 percent to 4 percent." He pointed out that this rise in unemployment comes as labor force participation—currently at 61.8 percent—has remained steady over the past year, suggesting that fewer people looking for work are finding jobs.
The executive director further explained that while the private sector added 500 jobs in April, revisions to March's employment numbers revealed that the private sector added 4,000 fewer jobs than initially reported. Consequently, fewer Ohioans are now working in the private sector than there were in March.
"Both the household survey and the payroll survey—which comprise the jobs report—show a weakening employment situation," Hederman stated.
Despite setting employment records over the past year, Hederman asserted that Ohio's job market has clearly cooled down due to higher interest rates and inflation impacting families and businesses across Ohio.
"As the state begins to prepare Ohio’s upcoming budget," Hederman advised, "policymakers should continue efforts to reduce the overall tax burden on Ohioans in a sustainable and responsible manner that also constrains spending, protects taxpayers, and keeps Ohioans working."