(The Center Square) – Ohio’s unemployment rate rose in July for the fifth consecutive month.
According to recent figures released by the Ohio Department of Job and Family Services, the state’s jobless rate increased to 4.5% in July, up 0.1% from June, but economists see promising signs.
First, the labor force participation rate jumped from 62.1% to 62.3%, showing more Ohioans are looking for jobs but cannot find them.
Nationally, the unemployment rate rose from 4.1% in June to 4.3% in July, adding 114,000 new jobs.
“Another positive sign is the revisions to June’s report to show Ohio added 3,000 private-sector jobs rather than a loss of 12,000 private-sector jobs as initially reported,” said Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute. “This positive revision to June’s report, in addition to the 3,400 new private-sector jobs added in July, reveals that Ohio’s summer is not as bad as initially feared.”
Molly Bryden, a researcher with Policy Matters Ohio, called inflation at a three-year low another positive economic indicator regarding interest rates and pressured the Federal Reserve to make a decision.
“Inflation is at a three-year low, a positive indicator for impending interest rate cuts in September,” Bryden said. “Despite the large increase in jobs this year, job growth is beginning to slow. The Fed’s timeline for cutting interest rates is critical for addressing the weakening job market in a timely manner – waiting too long could have significant implications for Ohio’s economy.”
In May, the state’s unemployment rate grew to 4%, marking the first time it eclipsed the national rate in three years.
That news came 10 months after state leaders cheered a record-setting unemployment rate of 3.3% in July 2023, the third consecutive month Ohio reached historic lows.
Since then, the numbers have either held steady or risen to the point of eclipsing the national level.