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Ohio is Literally Moving in the Wrong Direction!

Greg R. Lawson Jan 08, 2018

According to United Van Lines 2017 National Movers Study, Ohio ranked number 7 nationally for the most out of state moves. And an Atlas report shows that for the 10th consecutive year more people are moving out of Ohio than into Ohio.

Ohio is literally moving in the wrong direction!

While we have come to expect this reality, it is a trend Ohio should not just accept and illustrates why Ohio needs better policies that will grow the economy and increase jobs.

According to economist and UCLA professor Michael Stoll,

“This year’s data reflects longer-term trends of movement to the western and southern states, especially to those where housing costs are relatively lower, climates are more temperate, and job growth has been at or above the national average, among other factors.”

This should not be surprising. Ohio’s job growth has typically been below the national average in both good and bad times for much of the past half century. While the state has certainly climbed out of the deep job loss pit it fell into during the Great Recession, it still has yet to fully recover.

While Ohio’s policymakers have made commendable efforts to improve the job climate through tax and regulatory reform, there is much work that remains, and there are multiple areas where policymakers should focus their attention in an effort to improve Ohio business climate.

Embracing reforms in each of these areas will create a better environment for job growth.

First, Ohio remains a state without full worker freedom unlike 4 of our 5 neighbors (Indiana, Kentucky, Michigan, and West Virginia). 

Second, Ohio remains home to one of the most complicated local government structures of any state while having the single worst local tax in America – the municipal income tax. These complexities make it difficult for smaller businesses to grow, the kind of growth that leads to more jobs for Ohioans. 

Finally, Ohio needs to reduce the ridiculous burden of over the top occupational licensing while making a commitment to stop adding additional licenses to new jobs. Our recent report, Still Forbidden to Succeed: The Negative Effects of Occupational Licensing on Ohio’s Workforce, highlights the dire impact such licensing has lower-income and minority Ohioans as well as on the ability of workers, in general, to move for new job opportunities.

With reforms in these three key areas, we can grow our economy, increase job creation, and turn the moving vans around and bring people back to Ohio.

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