(The Center Square) – Ohio’s unemployment rate remained one of the highest in the country, while the number of people in the workforce continues to shrink.
While the state’s August jobless rate remained steady at 5%, it ranked the fourth highest in the country. Also in August, the national unemployment rate continued to climb, reaching 4.2%, according to figures released by the Ohio Department of Job and Family Services.
The state’s labor participation rate dipped to 62.5% in August, showing more people leaving the workforce, according to Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute.
Despite a growth in private-sector jobs, Hederman believes the employment figures show concerns.
“The silver lining is that the private sector continues to add jobs in Ohio, averaging 6,000 new jobs a month,” Hederman said. “Although the fact remains, Ohio’s job market has softened over the summer with rising unemployment, and consumer confidence has fallen over concerns about economic growth.”
The economic numbers recently released show 8,300 new private sector jobs created in August, but they also revealed a downward revision of 1,500 fewer jobs created in July.
Ohio’s jobless rate has been on a steady climb since a historical low of 3.4% in July 2023. Over the past year, from August 2024 to August 2025, unemployment grew 0.6 percentage points.
Washington, D.C., has the country’s highest unemployment rate at 6%, followed by California (5.5%), Nevada (5.4%), Michigan (5.3%) and Ohio.
“While Ohio policymakers should feel confident about recently adopted tax and energy reforms, they must also recognize the strain many Ohioans are experiencing over soaring property taxes,” Hederman said. “Significant structural reforms are needed to rein in spending at the local level, end automatic property tax increases not approved by voters, and increase transparency of property taxes and local government spending. Without these reforms, Ohio will struggle to attract workers and employers.”
