Columbus, OH – The number of people entering Ohio’s workforce fell for the first time in eight months, according to today’s June jobs report. A policy analyst at The Buckeye Institute says policymakers should be concerned when the most job gains came from state government. 

Although Ohio’s unemployment rate dropped slightly to 5.0 percent from 5.1 percent in May, the Ohio Department of Job and Family Services’ June report showed, The Buckeye Institute’s Joe Nichols said that is a result of labor force participation dropping to 63.4 percent from 63.6 percent—meaning fewer Ohioans were looking for work in June. 

“After a recent surge of Ohioans into the job market, it appears new job seekers are waiting for more opportunities to become available,” Nichols said. “When state government is the leader in new jobs, that is a bad sign that Ohio’s real economic engine—private-sector employers—has stalled.”

The number of jobs state government added in June was +4,100. Mining and logging (-300) and real estate (-2,000) suffered the most severe job losses. 

Ohio still outpaces the national average in labor force participation of 62.7 percent. Labor force participation comprises non-institutionalized Ohioans between the ages of 16 and 65. Nichols said that Ohio’s pro-economic policies have contributed to that growth over the past eight months and can do so in the future.

“Ohio’s recently announced $1.1 billion budget gap shows how serious it is that we get our economy up to full speed,” Nichols said. “State leaders will need to consider policies that fill the budget hole but not at the expense of Ohioans trying to find work and employers who want to create new jobs.”

The Buckeye Institute analyzes Ohio’s unemployment rate to identify policy solutions for increasing job opportunities and strengthening the state economy.

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