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Higher Unemployment, 12,400 Jobs Lost in July Under John Kasich’s Failed Policies

August 15, 2014

As Ohio loses jobs, labor market continues to shrink

COLUMBUS – This morning, the Ohio Department of Jobs and Family Services released the July jobs report and revised June figures for Ohio. After losing nearly 3,000 jobs in May, the revised June job creation figure was reduced by almost a third.  July’s report showed Ohio lost 12,400 jobs overall with 2,900 jobs lost in manufacturing. 

Ohio’s unemployment rate increased by .2% even though 6,000 Ohioans dropped out of the labor market—the 5th consecutive month Ohio’s labor market has shrunk.  In July, Ohio’s labor participation rate fell below the national rate.   This is third straight month that the number of employed Ohioans has shrunk.

In response to this month’s economic data, Ohio Democratic Party Chairman Chris Redfern released the following statement:

“Under John Kasich, Ohio’s job growth continues to drag behind the rest of the nation, and more people give up on finding a job in our state each month. These numbers reveal a frightening reality about Ohioans struggling in a weak economy. Kasich’s policies have failed to create the jobs Ohioans need, all while shifting the tax burden onto middle class families.”

WHAT OTHERS HAVE BEEN SAYING ABOUT OHIO’S LAGGING ECONOMY:

“Once again, Ohio had a subpar gain to that of the United States for 20 consecutive months,” he said. “What this means is that more than 100,000 Ohio workers can’t find a job because our recovery is too slow.” – Economic Research Analyst George Zeller.  [Source: Cleveland Plain Dealer (7/18/2014), “Ohio’s unemployment rate 5.5%; state gained 12,700 jobs in June.”]

“Ohio hasn’t had the big rebound like other states.”—Michael Wolf, an economist with Wells Fargo & Co. [Source: Columbus Dispatch(6/21/2014), “Ohio’s jobless rate of 5.5% lowest since April 2007.”]

BACKGROUND

For the 20th straight month, Ohio’s job creation rate has been lower than the national average.  In reaction to the June jobs report, economic research analyst George Zeller noted, “Ohio had a subpar gain to that of the United States for 20 consecutive months.” [Source: Cleveland Plain Dealer(7/18/2014), “Ohio’s unemployment rate 5.5%; state gained 12,700 jobs in June.”]

Job creation under John Kasich in Ohio has lagged U.S. job growth. In fact, at least 8 other governor’s terms since 1959 have seen stronger job growth than Ohio has seen so far under John Kasich.  [Source:  Cleveland Plain Dealer (8/5/2014), “Ohio lags U.S. jobs growth, as it has under a half-century of governors from John Kasich to Michael DiSalle.”]

When Kasich was elected Governor, Ohio’s job creation rate was nearly twice that of the national rate.  Now, Ohio’s ranked 38th in job creation.  In November 2010, Ohio’s job creation rate was 1.02% compared to the national average of  .54%.  Now, Ohio is ranked 38th in the nation with a job growth rate  (.83%) lower than it was in 2010. [Source: Arizona State University, W.P. Carey School of Business, “Job Growth USA” website (accessed 6/23/2014)]

In 2010, Ohio created over 55,000 new jobs — more than it did in 2013 under Kasich.  According to the U.S. Department of Labor’s Bureau of Labor Statistics, Ohio created 55,100 jobs in 2010, a year before Kasich took office, while only creating 50,400 jobs last year.  [Source: U.S. Department of Labor, Bureau of Labor Statistics, CES Survey, seasonally adjusted (accessed 5/8/2014)].

Job gains under Kasich are in lower paying industries than the jobs lost in the recession.  “Weekly hourly earnings in the industries that showed employment gains since the recession in Ohio range from $12 to about $25 per hour,” [Veronica Kalich, an economics professor at Baldwin Wallace University] said, adding that professional and business services came in a little higher. “Employment has not recovered in the higher paying jobs.”  [Source: Cleveland Plain Dealer, (7/7/2014), “Ohio has not recovered 120,000 jobs lost since the recession: some say number higher.”]

Unemployment rate drop has been fueled by people leaving the workforce, not job creation.  Since Kasich took office, Ohioans labor market has shrunk by 91,000.  According to the Bureau of Labor Statics, 91,000 Ohioans have dropped out of the labor market since Kasich took office. In 2014 so far alone, over 43,000 Ohioans dropped out of the labor market. [Source: U.S. Department of Labor, Bureau of Labor Statistics, LAUS Survey, seasonally adjusted (accessed 8/15/2014)]

Nationally, the country now has more jobs than it did at its pre-recession level.  With today’s national jobs report for May, the country now has more jobs than it did before the 2008 recession.  [Source: New York Times(6/6/2014), “In Jobs Report, Two Milestones.”]

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