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State’s unemployment rate below 5 percent
By Kalea Hall
YOUNGSTOWN
Although the state’s unemployment rate is below 5 percent, economists say Ohio is still not at a full- employment level.
“We have to see that 5 percent rate for some time before we can say we worked off the slack,” said Mekael Teshome, PNC economist.
Ohio’s seasonally adjusted unemployment rate was 4.7 percent in August, down from 5 percent in July.
Ohio’s nonfarm wage and salary employment increased 14,600 over the month from a revised 5,396,500 in July to 5,411,100 in August.
The number of workers unemployed in the state was 265,000, down 21,000 from 286,000 in July. The civilian labor force was slightly down from 5,721,000 in July to 5,703,000 in August.
“I think the underlying story hasn’t changed that we are on this moderate growth path,” Teshome said.
The state saw these job gains: goods-producing industries, 300; construction, 2,700; professional and business services, 5,700; trade, transportation and utilities. 5,300; leisure and hospitality, 2,900; financial activities, 1,700; other services, 1,000; and educational and health services, 200.
Manufacturing saw losses of 2,300.
“We don’t like to see the losses in manufacturing,” Teshome said. “There’s still a lot of demand for autos. The weak spots are for steel and energy.”
Other losses were: mining and lodging, 100; information, 300; and government, 2,200.
“The large decline in the labor force led to the drop in unemployment,” said George Zeller, Cleveland-based economist. “There are still too many workers who cannot find a new job after they get laid off.”
Zeller says the state is still behind the nation in job growth, and it is still short 17,000 jobs from pre-recession times.
The U.S. unemployment rate for August was 5.1 percent, down from 5.3 percent in July and down from 6.1 percent in August 2014.
Local unemployment rates for the Mahoning Valley will be released Tuesday.