(The Center Square) – Ohio’s unemployment rate climbed to its highest level in more than four years, according to figures released by the Ohio Department of Job and Family Services.
Ohio’s unemployment rose to 5% in July, staying above the national average, which is also on the rise. The last time the state’s jobless numbers hit 5% came in May 2021. At that time, figures fell during the ongoing COVID-19 pandemic recovery.
The national unemployment rate for June also rose to 4.2%, while the labor force participation rate fell.
“In a concerning sign, Ohio’s unemployment rate increased to 5% in July, and the labor force participation rate fell to 62.6%, indicating that Ohioans looking for work are not finding jobs,” said Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute. “While the national job market is still performing better than Ohio’s, July’s national jobs report also saw a climbing unemployment rate and falling labor force participation rate.”
More economic bad news included a June revision of the job growth report that showed only 1,800 private sector jobs were added, and Hederman said the number of new hires is well below the hiring pace earlier in the year.
All that creates economic uncertainty and concerns of a possible recession, according to Molly Bryden, researcher with Policy Matters Ohio.
“Experts warn the national jobs report may signal a looming recession,” Bryden said. “A hiring slowdown, coupled with sticky inflation, have generated rising concerns about ‘stagflation:’ a combination of slower economic growth and higher prices. Such a situation would have severe implications for Ohio’s working families.”
The monthly household survey showed the number of unemployed in Ohio grew by 3,000 in June.
“The gap between statewide and national unemployment suggests that Ohioans may be feeling increasing economic pressures and price pains more acutely than our neighbors,” Bryden said. “Rising unemployment, both nationally and statewide, adds to growing economic uncertainty trickling down from the volatile federal landscape.”
