Unemployment rates in Ohio decreased through December, but the reduction doesn’t necessarily indicate an increase in jobs.
“People are becoming discouraged and checking out of the labor force,” said Dennis Evans, spokesman for the Ohio Department of Job and Family Services.
The labor force includes all people 16 years of age or older who are employed or seeking employment. For statistical purposes, people who have ceased to search for a job are excluded from labor force figures.
Ohio’s unemployment rate of 5.3 percent falls below the national rate of 6 percent. Ohio’s variety of employment opportunities is responsible for the low rate, Evans said.
“Ohio has a diverse economy — even the high concentration of industry and manufacturing help Ohio,” he said.
Areas of central Ohio, including Franklin, Licking, Delaware, Union, Madison, Pickaway and Fairfield counties, contain the lowest unemployment rates in the state.
“The Greater Columbus area has had a stronger economy than any other city in Ohio,” said Mike Brown, press secretary for Mayor Michael B. Coleman. Franklin County’s unemployment rate stands at 3.9 percent.
“It’s also the only major city in Ohio that has gained population and still continues to grow,” he said.
Mayor Coleman has been working on a series of economic proposals that he will present next week at the State of the City address.
“The mayor is very active in driving the economy forward,” Brown said.
In the northeast corner of the state, the recession has caused unemployment rates to jump, reaching as high as 7.9 percent in Ashtabula County. Manufacturing and industry suffer the most during economic recessions.
“Employers are just getting by right now. There’s not a pent-up demand for goods and services,” Evans said.
Because of the uncertainty among consumers, in part from the residual effects of the Sept. 11 attacks, demand has reached a standstill.
“The job market and hiring have been very flat for the past six months, but have held steady,” Evans said. “Any fluctuation in unemployment is caused by seasonal changes or people checking out of the labor force.”
Economists saw no significant increase in retail sales this past holiday season. Holiday hiring reportedly didn’t affect the economy.
“It was the slowest on record — the worst,” said Paul Post, a lecturer in the Department of Economics at Ohio State. “Uncertainty has been dampening investment.”
“Ohio as a whole is better than the nation,” Post said. “But that doesn’t mean Ohio is impervious to economic effects.”