COLUMBUS – Ohio’s unemployment rate rose to 5% in July, marking an increase from June’s 4.9% and a significant jump from 4.3% in July 2024.

The numbers reveal a paradoxical situation for Ohio workers: While the state added 5,400 jobs last month, unemployment continued to rise. About 296,000 Ohioans were unemployed in July, up from 293,000 the month before and 255,000 a year ago.

That puts Ohio’s jobless rate above the national average of 4.2%, which was up from 4.1% in June but unchanged from July 2024.

Ohio’s unemployment last eclipsed 5% in July 2021, registering a jobless rate of 5.2% for that month, according to data from the U.S. Federal Reserve.

At that time, though, the rate was falling after a pandemic spike to 16.5% in April 2020. It bottomed out at 3.4% in June 2023 and has been climbing ever since.

Where the jobs are growing

The service sector drove July’s job gains, adding 4,500 positions. Trade, transportation and utilities led with 5,100 new jobs, while financial activities added 1,300 positions and private educational and health services contributed 1,200 jobs. Other services gained 2,000 positions.

Government employment saw an increase of 2,300 jobs, with local government contributing the most at 1,700 new positions. State and federal governments added 400 and 200 jobs respectively.

Which sectors struggled

Leisure and hospitality took the biggest hit in July, losing 4,500 jobs for the month. Construction shed 1,400 positions and manufacturing dropped 100 jobs. Information services lost 300 jobs and professional and business services cut 300 positions during July.

Overall, goods-producing industries decreased by 1,400 jobs for the month, while mining and logging gained 100 positions.

The bigger picture

Over the past 12 months, Ohio added 70,200 jobs total. Construction led annual job growth with 13,600 new positions, while private educational and health services contributed 21,000 jobs over the year.

Manufacturing added 7,200 jobs annually, with durable goods adding 4,900 and nondurable goods gaining 2,300. Mining and logging lost 200 jobs over the 12-month period.

Other sectors showing annual growth included professional and business services with 9,000 jobs, trade, transportation and utilities with 8,800, financial activities with 5,200, other services with 3,600, and information with 300 positions. Leisure and hospitality lost 1,900 jobs over the year despite the larger monthly decline.

Government employment increased 3,600 annually, with state government adding 3,900 and local government gaining 800, while federal government lost 1,100 positions over the year.

Ohio’s labor force participation rate was 62.6% in July, down from 62.7% in June but up from 62.5% in July 2024. The national rate was 62.2%, down from 62.3% in June and 62.7% in July 2024.

The data comes from surveys conducted by the U.S. Department of Labor in cooperation with the Ohio Department of Job and Family Services.

Artificial Intelligence aided in organizing information for this story.

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