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The Buckeye Institute: New Jobs Report Shows Concerning Signs for Ohio’s Economic Recovery

May 21, 2021

Columbus, OH – Rea S. Hederman Jr., executive director of the Economic Research Center at The Buckeye Institute and vice president of policy, commented on newly released employment data from the Ohio Department of Job and Family Services

“Ohio’s April jobs report was mixed with one survey showing the labor market continuing its recovery and the other survey showing the recovery stalling. This mixed bag indicates that the state’s economic recovery continues to be uneven and matches the recent disappointing national jobs report

“The good news is, Ohio’s unemployment rate was unchanged at 4.7 percent and the labor force participation rate increased from 62.1 percent to 62.3 percent, indicating that workers who entered or re-entered the workforce were able to find jobs. Furthermore, Ohio’s unemployment rate and labor force participation rate continue to perform better than the national average, another good sign for Ohio’s recovery. Despite these positive signs, Ohio’s labor force participation rate remains below the 63.7 percent Ohio saw in February 2020 before the pandemic’s full impact on the economy hit. 

“The most troubling sign in the April jobs report is the loss of 3,400 private sector jobs and the  downward revision of new private sector jobs from the March report to 8,700 new jobs. Nearly every industry saw some job loss in April, and once again, hotels and restaurants were the hardest hit, losing 4,200 jobs, which is still down almost 75,000 jobs compared to February 2020. The construction industry saw 400 new jobs added as did the real estate and rental housing industry, which indicates that demand for housing remains strong.

“Even as the March report was reassuring, April’s report shows some industries still have a long way to go before they return to the pre-COVID highs of February 2020. Hotels and restaurants continue to struggle and need targeted aid to recover from the government-mandated shortened hours and closures. Recent decisions by Governor Mike DeWine to encourage more Ohioans back into the workforce will aid Ohio’s recovery by helping to reduce labor shortages and get more Ohioans back to work. The coming months’ jobs reports will paint a clearer picture of the health of Ohio’s economy as the state lifts emergency health orders, ends emergency-based unemployment benefits, and vaccinations increase.”

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