Ohio’s unemployment rate inched down slightly in May to 5.1 percent as employers added an estimated 9,200 jobs last month.
Though that’s not a banner month, economists say it does fit in with the theme Ohio’s job market has been following for some time.
“I thought it was a kind of a middling report really, but it does show us that Ohio’s economy continues to improve slowly and steadily,” said Mekael Teshome, an economist with PNC Financial Services Group.
The data, released Friday by the Ohio Department of Job and Family Services, show the state’s nonfarm employment was 5.49 million in May. The jobless rate in April was 5.2 percent, but the state rate was higher last month than it was for the same month last year, when it was 4.9 percent, but that was primarily because more people are now looking for work.
State data show 125,000 people joined the work force over the last 12 months. Employers have added 107,000 jobs in that period.
“That’s not a bad thing. The labor force participation rate is improving. I like that. It’s a good sign that confidence is steadily improving,” Mr. Teshome said. “The downside is we’re losing jobs in goods-producing industries. That’s a big driver for Ohio’s economy. That’s what kept the overall rate of growth down.”
The May report showed employment in construction fell by 1,300 while manufacturing dropped by 3,100. Over the last 12 months, manufacturing employment has decreased by 4,800 as losses in durable goods manufacturing exceeded gains in nondurable goods, the state said.
Economists such as Mr. Teshome say there are several reasons for that. The state’s exceptionally hard-hit manufacturing sector is more or less back to normal after racing back following the recession. While that’s good, it also means that the transition away from manufacturing jobs to service jobs is also back to normal.
But other, larger issues are also weighing on Ohio manufacturing.
The strong U.S. dollar continues to hurt exporters, whose goods are more expensive to overseas buyers. Manufacturers are also being hurt by a weak energy market.
The good news for Toledo is that much of this region’s manufacturing is tied to automotive, which continues to do well.
The U.S. unemployment rate was also 4.7 percent last month, down from 5 percent in April. However, job creation was weaker in May than it had been in six years.
Contact Tyrel Linkhorn at tlinkhorn@theblade.com or 419-724-6134.
First Published June 18, 2016, 4:00 a.m.