Jobless rate rises in Ohio to 5.2%

The jobless rates of Ohio and the U.S. are going in opposite directions.

The state reported Friday that Ohio’s unemployment rate rose in July to 5.2 percent, the highest since November 2014.

Meanwhile, the U.S. rate fell to 4.3 percent, matching a 16-year low that also was reached in May.

Ohio’s unemployment rate had been 5 percent in June.

The number of unemployed Ohioans rose by 9,000 last month, to 300,000, which is 19,000 more than a year earlier.

Meanwhile, Ohio employers added just 1,600 jobs last month, although the monthly jobs report did show revisions for May that boosted the job gain in that month to a robust 19,200.

On the downside, the state’s labor force shrank by 16,000 workers in July.

Ohio’s jobless rate has hovered around 5 percent since late 2014. Meanwhile, the U.S. rate has continued to trend lower. At times since the recession ended, the Ohio rate has been lower than the U.S. rate.

“The numbers show a slow and choppy road to recovery for Ohio,” said Mekael Teshome, an economist for PNC Bank.

He said of the rise in the jobless rate: “I don’t think it is too much to worry about. The key is payroll jobs growth.”

It is hard to predict which employment sectors will see job gains, especially given the state’s slow population growth and the lack of progress in Washington on initiatives such as tax reform, said Tom Jackson, an IHS Markit economist.

“We still see positive gains, but it will be relatively low, given where we are in the recovery and where we are with the labor force,” he said.

Despite last month’s increase in the state’s jobless rate, 5.2 percent is still low, said Angela Terez of the Ohio Department of Job and Family Services, which released the report. The rate peaked at 11 percent at the end of the recession.

“We’re still in a good place. The work never ends in trying to find people jobs,” she said.

The leisure and hospitality sector added 5,200 jobs last month, more than any other sector. The government

sector added 4,100 jobs, nearly all of them in local governments. That sector often is volatile around the end and the beginning of the school year.

The finance sector added 1,200 jobs.

Several sectors saw job losses. Professional and business services shed 2,600; construction, 1,700; private education and health care, 1,300; and manufacturing, 1,100.

The loss of manufacturing jobs reflects slower auto sales and plant shutdowns that usually are scheduled during the summer.

“The positives are that key serviceindustry jobs have grown year over year,” Teshome said. “Health care, finance (and) construction have grown year over year. That’s a good sign.

“The downside is manufacturing. Auto sales have weakened. That is a big risk for Ohio’s economy.”