43
Local unemployment figures drop 0.2 percent
By Kalea Hall
YOUNGSTOWN
Cleveland-based economist George Zeller called the July unemployment figures in Ohio “monumental.”
That’s because his record shows a 43-month streak below the nation’s job-growth average ended last month particularly because of growth in government and manufacturing.
“This wasn’t a minor change,” Zeller said. “It was a major change, and whether we keep it up remains to be seen.”
The Mahoning Valley’s nonseasonally adjusted unemployment rate dropped 0.2 percent year-over-year to 6 percent. The number of unemployed dropped 300 from 15,400 reported in July 2015 to 15,100 in July 2016. The number of employed increased 900 from 234,100 to 235,000, according to figures released by the Ohio Department of Job and Family Services on Tuesday.
Meanwhile, the civilian labor force, or the sum of the unemployed and employed, stayed the same at 250,000.
In July, the state’s seasonally adjusted unemployment rate dropped 0.2 points from 5 percent in June 2016 to 4.8 percent – below the national unemployment rate of 4.9 percent. Manufacturing – a prime sector in the Valley – added 2,600 jobs to the economy. The government sector saw job growth of 4,800. The private sector added 8,000 jobs to the economy.
“I actually feel very good about this [report],” Zeller said. “We got rid of that subpar growth streak.”
Now, there’s a new streak of Ohio’s growth surpassing the nation’s.
“We are at a crossroads,” Zeller said. “Can we keep it up or not? We will find out next month.”
Mekael Teshome, PNC economist, saw July’s figures as a continuation of the story of slow progress out of the recession.
“It’s been a bumpy ride for the region,” Teshome said.
Teshome doesn’t like to compare the region to the nation because of a difference in demographics and structure. Northeast Ohio has an older population.
“It is true that Youngstown’s growth has been slower than average,” Teshome said.
Teshome expects to see steady gains as long as the core industries are focused on – like manufacturing.
“I would need a few more months before I would say there’s a decisive break in the trend,” Teshome said.
Bert Cene, director of the workforce development board for Mahoning and Columbiana counties, works with companies to find workers and find jobs for unemployed workers.
He sees the increase in employment during July as seasonal hires.
“We have not seen any significant layoffs like we did before,” Cene said. “Our job orders are pretty steady.”
George Mokrzan, Huntington Bank director of economics, said industries such as goods producers continue to be soft. Strength in the economy is coming from the services sector. He sees the service industry adding more jobs and manufacturing fluctuating in the future.
“The third-quarter economy is looking like it will be pretty good,” Mokrzan said.