Ohio’s job market showed signs of slowing in July, according to new data from the Ohio Department of Job and Family Services. The state’s unemployment rate rose to five percent, while labor force participation fell to 62.6 percent.
Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute, addressed the report’s findings. “In a concerning sign, Ohio’s unemployment rate increased to five percent in July, and the labor force participation rate fell to 62.6 percent, indicating that Ohioans looking for work are not finding jobs. While the national job market is still performing better than Ohio’s, July’s national jobs report also saw a climbing unemployment rate and falling labor force participation rate.”
Hederman noted that private-sector job growth in Ohio was limited last month. “In fact, Ohio added only 1,800 private-sector jobs after June’s growth was revised slightly downwards, and the number of new hires is well below the hiring pace of the first half of 2025.”
He compared state trends with national figures: “Like the national jobs report, Ohio’s July report is weak, and policymakers must continue to adopt policies and reforms that spur economic growth and ensure the state can withstand an economic downturn. Recent reforms—such as moving to a flat income tax and reforming energy policy—put the Buckeye State in a good position. However, more must be done to make Ohio more attractive to employers and workers. Reforming Ohio’s local governance structure and complex property tax system, as The Buckeye Institute outlined, will help control government spending and make Ohio a more affordable place to live and work.”
The latest data comes as both state-level https://jfs.ohio.gov/press-releases/july-2025-jobs-report/ numbers show weaker employment trends compared with earlier months in 2025.
