COLUMBUS – Last week, 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:
“Under John Kasich, Ohio’s economy is lagging behind while the rest of the nation recovers. In this study, Ohio’s job growth is pitiful, ranked at 41st behind most of the country. This is yet another indicator that Kasich’s policies of shifting the tax burden onto working families are not working, and not creating the jobs Ohioans need.”
This is another among many indicators that Ohio’s economic recovery is lagging behind the rest of the nation. Among other concerns cited in Ohio’s economy since Governor Kasich took office:
- Discouraged workers are driving Ohio’s dropping unemployment rate. 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)]
o 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 slowing job growth rate. 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.”]
o 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)]
o 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 are in lower paying industries than the jobs lost. “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.”]