Ohio’s Economy: Resilient, Diverse, and Positioned for Long-Term Growth

As the U.S. economy continues to evolve, Ohio remains strong and steady thanks to its long-term strategy of industrial diversity and intentional investment in high-growth sectors.

The state’s preliminary May 2025 unemployment rate is in line with historically positive benchmarks—comparable to 2017–2019 and August 2021, when unemployment fell below 5%. This rate is now also closer to the national average than it was in 2019, despite recent economic headwinds.

One of those headwinds is the ripple effect of federal layoffs. Ohio has a significant number of federal employees, meaning federal job reductions could have created a much more severe economic shock. Instead, Ohio’s unemployment rate remains only slightly elevated—and that’s not by accident.

Building a Resilient Economy Through Sector Diversity

Ohio’s economic stability is largely driven by JobsOhio’s long-term focus on diversifying and strengthening ten strategic industries, including advanced manufacturing, logistics, technology, and healthcare. These sectors now account for:

• 22% of Ohio jobs
• 29% of statewide payroll
• 36% of Ohio’s gross state product

By investing in a wide range of sectors, JobsOhio is helping Ohio become more resilient to industry-specific or regional downturns. According to Moody’s, Ohio is the most industrially diverse state in the Midwest and ranks eighth nationally. Higher industrial diversity does tend to bring slightly elevated unemployment rates—but it also dramatically increases resilience to economic shocks like recessions or sector-wide disruptions.

In fact, Ohio is one of only three states—alongside North Carolina and Nevada—whose industrial diversity has increased year over year from 2012 to 2022.

Labor Participation is Surging—A Positive Sign for Growth

The labor force participation rate in Ohio is the highest it’s been in a decade. While a higher participation rate can temporarily elevate unemployment numbers (more people actively looking for work), it’s ultimately a strong indicator of economic health and momentum. A growing workforce means Ohio companies have a larger talent pool to hire from as they expand.

Ohio employers continue to offer ample opportunities, with more than 273,000 job openings as of April 2025.

AAA Ratings Reflect a More Reliable Economy

In another sign of strength, Ohio has earned the highest possible credit ratings—AAA/Aaa/AAA—from all three major rating agencies for the first time in state history. These ratings cite economic diversification and job creation as key drivers of fiscal stability.

And the momentum continues:

• Ohio ranked #3 nationally in total announced projects
• Ranked #5 for new jobs
• Ranked #3 for capital investment
• The only state ranked in the top 5 for both total and per capita projects every year since 2013

JobsOhio helped secure $19.3 billion in new capital investment in 2024, supported 377 project wins, created 19,338 new jobs, generated $1.61 billion in new payroll, and retained more than 54,000 existing Ohio jobs.

Looking Ahead

JobsOhio does not influence short-term economic fluctuations—but our mission is to build the long-term foundation for growth, resilience, and opportunity. By staying focused on sector diversity, workforce readiness, and competitive business conditions, Ohio is better prepared than ever to weather challenges and seize new opportunities.

Ohio isn’t just staying competitive. We’re leading—and building a stronger future, together.