As claims drop nationally, Ohio initial unemployment claims spike
COLUMBUS – This morning, the U.S. Department of Labor’s Employment and Training Administration released the latest data on unemployment insurance weekly claims. And while initial claims were down nationally, Ohio had the third largest increase in initial unemployment claims caused by layoffs in the transportation industry.
Earlier this month, National Public Radio’s economic series, Planet Money, released a comparison of post-recession job growth and loss of all fifty states from January 2008 to May 2014. The comparison shows Ohio ranks 41st in post-recession job growth, with jobs shrinking by 2.4 percent in the Buckeye State. The data in this study is further evidence contrary to Governor Kasich’s claim of successful job creation.
In response, Ohio Democratic Party Chairman Chris Redfern released the following statement:
“Today we see yet even more evidence that as the nation’s economy heats up, Ohio’s economy flounders under John Kasich. This is another clear indicator that Kasich’s policies have failed to create the jobs Ohioans need, all while shifting the tax burden onto middle class families. Because of Kasich, Ohio’s job growth is lagging behind the rest of the country.”
What others have said about Ohio’s economy in response to the latest economic data:
“Everybody in Ohio, employed or not, is suffering from Ohio’s sub-par recovery from the 2007 recession.”—Economic Research Analyst George Zeller. [Source: Cleveland Plain Dealer (6/19/2014), “Wages flat in Ohio, decline locally; state job growth below national average, Labor Department says.”]
“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.”]
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.)]
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)].
For the 19th straight month, Ohio’s job creation rate has been lower than the national average. In reaction to the May jobs report, economic research analyst George Zeller noted, “Ohio has now gone 19 consecutive months with Ohio’s job growth below the U.S.A. national average.” [Source: Columbus Dispatch (6/21/2014), “Ohio's jobless rate of 5.5% lowest since April 2007.”]
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 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)]