Ohio has fifth largest jobs deficit, has not returned to pre-recession levels like other states
This morning, the Ohio Department of Jobs and Family Services released the May jobs report figures for Ohio. Ohio’s unemployment rate dropped in May, but only because 14,000 Ohioans dropped out of the labor market. The survey of Ohio households in May actually showed the number of employed Ohioans actually dropped by 4,000.
In response to today’s May jobs report for Ohio, Ohio Democratic Party Chairman Chris Redfern issued the following statement:
“Nationally, we’re seeing a better job rate than before the recession began, but not in Ohio, where we still have over 140,000 jobs to regain—the fifth largest jobs deficit in the country. Ohio’s labor force has been shrinking for the past three months because over 38,000 frustrated Ohioans gave up hope of finding a job. Each month we see more evidence that under John Kasich, our economy, our job growth, and our paychecks continue to lag behind the rest of the nation. Kasich’s policies of shifting the tax burden onto working families while gutting our schools and communities do not work for middle class Ohioans.”
BACKGROUND
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.”]
Ohio still has nearly 140,000 jobs to regain to return to its pre-recession levels—the fifth highest deficit in the nation. Ohio has 139,900 jobs left to regain before returning to its pre-recession number of jobs it had in June 2007. Alaska, Colorado, D.C., Iowa, Louisiana, Massachusetts, Montana, Nebraska, New York, North Dakota, Oklahoma, South Dakota, Texas, and Utah all have regained all the jobs lost recession roughly a year ago, yet Ohio has the fifth largest amount of jobs left to regain to reach its pre-recession numbers. Neighboring West Virginia reached its pre-recession jobs number back in February. [Source: U.S. Department of Labor, Bureau of Labor Statistics, Current Employment Statistics, seasonally adjusted (accessed 6/19/2014.)]
Unemployment rate drop has been fueled by people leaving the workforce, not job creation. Since Kasich took office, Ohioans labor market has shrunk by 79,000. According to the Bureau of Labor Statics, 79,000 Ohioans have dropped out of the labor market since Kasich took office. In May alone, over 14,000 Ohioans dropped out of the labor market after shrinking 13,500 in April and 11k in March for a total drop of 38,500 for the last three months. [Source: U.S. Department of Labor, Bureau of Labor Statistics, LAUS Survey, seasonally adjusted (accessed 5/8/2014)]
Economist: “A declining labor force doesn’t have anything to do with a healing economy.” Mekael Teshome, an economist for PNC Bank noted that recent drops in the unemployment rate “wasn’t entirely for the right reasons” noting that “[a] declining labor force doesn’t have anything to do with a healing economy.” [Source: Youngstown Vindicator (4/23/2014), “Economists cast doubt on unemployment figures.”]
Ohio’s economy grew less in 2013 than it did in 2010. According to theU.S. Department of Commerce Bureau of Economic Analysis, Ohio’s GDP grew 2.5% in 2010 compared to the initial projected 1.8% in 2013. [Source: U.S. Department of Commerce Bureau of Economic Analysis, Press Release(6/11/2014).]
Last year, thirty other States had stronger personal income growth than Ohio. According to the U.S. Department of Commerce Bureau of Economic Analysis, Ohio ranked 31st in the nation, trailing the national average, in personal income growth. Ohio also ranked 30th in the nation in per capita personal income. [U.S. Department of Commerce Bureau of Economic Analysis,Press Release (3/25/2014).]
When Kasich was elected Governor, Ohio’s job creation rate was nearly twice that of the national rate. Now, Ohio’s ranked 36th 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 36th 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 6/6/2014)]
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)].
For the 18th straight month, Ohio’s job creation rate has been lower than the national average. In reaction to today’s jobs report, economic research analyst George Zeller noted, “”This is the 18th consecutive month that Ohio’s job growth rate was below the national average.” [Source: Cleveland Plain Dealer (5/16/2014), “Ohio’s unemployment rate down to 5.7% because of job gains, but also shrinking labor force.”]
ConAgra Foods announces its closing two plants, laying off 170 employees. This morning, ConAgra Foods announced that it would close two Ohio plants in a cost-saving operations consolidation move. In 2012, 25 positions were eliminated at the ConAgra plant in Marion, resulting in a reduction of shifts. [Source: Marion Star (6/6/2014), “ConAgra Foods closing plants.”]
Anchor Hocking’s flagship plant in Lancaster reportedly may close for good. “Anchor Hocking has given notice to employees that its Lancaster plant could permanently close as soon as August if the parent company does not find a long-term solution to its financial crisis. The glassmaker, with more than 1,100 workers in the city, has been idle since mid-May.” [Source: Columbus Dispatch (6/8/2014), “Anchor Hocking could close for good.”]