Ohio Has Second Highest Increase in Unemployment Claims
This week, multiple indicators have shown that Ohio’s economy is stalling. Ohio had the second largest increase in initial unemployment compensation claims last week. For the second month in a row, the state reported revenues coming in below estimates by the Kasich administration.
In response, Ohio Democratic Party Chairman Chris Redfern released the following statement:
“With ConAg closing, unemployment claims rising, state revenues worse than expected and 25,000 frustrated unemployed Ohioans giving up their job search, it’s clear that Ohio is falling behind. Before John Kasich was elected, our state’s job growth was better than the national average. Thanks to Kasich’s policies, Ohio now lags behind 35 other states in job growth. It’s just more proof that Kasich’s policies don’t work for middle class Ohioans.”
BACKGROUND
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.”]
Last week, Ohio had the second largest increase in initially filed weekly claims in the United States. [Source: U.S. Department of Labor, Employment and Training Administration (6/5/2014).]
Ohio revenues fall below Kasich Administration’s estimates for second month in a row due to falling revenues largely across the board. Due to the personal income, financial institutions, commercial activity and sales taxes all coming below estimates in May, the State collected over $100 million less than projected. [Source: Gongwer (6/5/2014), “State Tax Revenue Drops Against Estimates For Second Month In A Row.”]
ConAgra Foods announces its Marion and Morral 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.”]
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.”]
Unemployment rate drop has been fueled by people leaving the workforce, not job creation. In 2010, the number of unemployed Ohioans dropped by over 85,000. In 2013, the number of unemployed Ohioans dropped by less than 10,000. [Source: U.S. Department of Labor, Bureau of Labor Statistics, LAUS Survey, seasonally adjusted (accessed 5/8/2014)]
Since Kasich took office, Ohioans labor market has shrunk by over 51,000. According to the Bureau of Labor Statics, 51,609 Ohioans have dropped out of the labor market since Kasich took office. In March 2014 alone, over 11,000 Ohioans dropped out of the labor market. 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.”]
When Kasich was elected Governor, Ohio’s job creation rate was nearly twice as high as the national average. Now, Ohio is 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)]