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. 

“The decline in Ohio’s unemployment rate—which was due to fewer Ohioans looking for work and instead leaving the labor force—does not mask the weakness in the December jobs report. For the first time since the recession began, the number of Ohioans employed in the private sector fell by 6,500. Although this report only reflects one month, it follows other worrying signs, including an increase in initial unemployment claims and a decline in the national jobs numbers. 

“Despite these concerning numbers, there were some bright spots. Wholesale and retail trade hired more workers during the holiday season and ended the year with more jobs than there were in the previous year, a feat matched only by the manufacturing of non-durable goods sector. Unfortunately, a bad year got worse for the leisure and hospitality sector, which saw 9,200 fewer jobs in December, increasing that sector’s 2020 job loss to 125,400. The government sector lost 5,000 in December, ending the year with 53,800 fewer jobs.

“While Ohio tax revenues continue to exceed expectations, policymakers should be concerned about a weaker economy and should focus on adopting policies that will aid Ohio’s recovery. Policymakers should ease the tax burden on Ohio’s families and businesses, specifically targeting aid to businesses in the struggling leisure and hospitality sector to help them keep their doors open and workers on the payroll. And any federal assistance to state and local governments should be appropriately tailored to help businesses that have been hardest hit by the recession and on emergency spending to help fight the pandemic.” 

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