Crain’s Cleveland Business first published this opinion piece.

Gov. Mike DeWine recently recognized September as Workforce Development Month in the state of Ohio. In his proclamation, the governor highlights efforts to continue building a strong workforce in Ohio, while the press release proudly notes the state’s recent ranking as CNBC’s Top State for Business.

The recognition comes at a critical time. So does the opportunity to build on recent successes.

When CNBC began its business ratings in 2007, Ohio placed in the bottom half. But with top marks for infrastructure and strong scores for access to capital and cost of living, the state has completed a stunning economic turnaround. Lower income tax rates, an increasingly business-friendly regulatory climate, new manufacturing capacity, and a wave of high-profile capital investments helped build this moment.

But as with any good business, Ohio still has work to do.

Despite its overall first-place finish in the CNBC ratings, Ohio ranked just 35th in the workforce category — well below average. The state shed jobs between January 2025 and June 2026, and its labor force participation rate has slipped, a worrisome sign that people struggling to find jobs are no longer looking.

Part of the problem is that Ohio is not investing strategically in educating and training workers with the skill sets employers want and need. The Buckeye Institute’s recent report on career readiness recommends several public policy changes for improving Ohio’s labor force.

For years, the state’s higher-education funding formula rewarded colleges and universities for enrollment and graduation numbers, regardless of whether graduates actually found jobs. Ohio tax dollars helped pay for diplomas, not careers.

Last year, the General Assembly amended the funding formula by tying $100 million in state education funding to graduate employment rates and wages. That was a good start, and policymakers should increase the outcomes-based share of Ohio’s higher-education funding and reward schools that best prepare their graduates for quality employment.

Another good policy initiative would encourage colleges and employers to co-design degrees and certificate programs. Ohio Senate Bill 462 and Ohio House Bill 994 wisely head in that direction and ask employers to fund curriculum development, provide essential equipment, and make industry experts available to students.

To reward participating employers, the bill offers two narrow tax credits. Unlike per-apprentice credits offered in other states, Ohio’s approach pays only when the training yields certified results. That critical distinction carefully protects Ohio’s hard-won tax simplicity by not writing blank-check subsidies to businesses.

Finally, state officials should take full financial advantage of the new Workforce Pell Grant program, which extends federal aid to short-term credential programs of 150 to 599 clock hours. Participating employers must meet the same 70 percent completion and placement rate required by Senate Bill 462, making Ohio’s college-business partnerships natural candidates for Workforce Pell Grant funding.

CNBC rightly recognized and rewarded Ohio for being a great place to do business. Addressing labor force concerns by improving employee training with better, outcome-based education funding incentives is long overdue. Making those adjustments will enhance worker pay and efficiency and offer the marketable skills that businesses value.

Ohio may well be America’s Top State for Business, and deservedly so. But as we celebrate Workforce Development Month, it should set its sights on becoming the best state for its workers, too.

Greg R. Lawson is the senior research fellow at The Buckeye Institute.