Columbus, Cincinnati, and Cleveland Named Among Top Cities for Young Professionals

Key Economic Insights

• U.S.: Real GDP rose 2.4% in Q2 2023, beating expectations. U.S. unemployment rate improved to 3.5% in July, as private sector wage growth slowed down to an annualized rate of 4.5% in Q2.

• Ohio: Recently approved projects are expected to create 781 new jobs and spur $47M in investment across the state. Forbes Advisor named Columbus, Cincinnati and Cleveland as top cities for young professionals.

U.S. Insights

Total nonfarm payroll employment rose by 187,000 in July, and the unemployment rate improved to 3.5%. The labor force participation rate registered 62.6% during the month, unchanged from June. U.S. job openings declined to 9.58M in June, the lowest level since April 2021. Quits decreased to 3.8M during the month and layoffs/discharges remained steady at 1.5M.  Private sector wage growth showed signs of cooling in the second quarter, according to the BEA’s Employment Cost Index. Compensation costs for private industry workers increased 4.5% during the 12-month period ending June 2023, a deceleration from 5.5% growth during the same period in 2022. Nonfarm business sector labor productivity increased 3.7% in the second quarter with output increasing 2.4% and hours worked decreasing 1.3%.

U.S. Real GDP increased at a 2.4% annual rate in Q2 2023, above expectations for 2.0% growth according to the “advance” estimate released by the Bureau of Economic Analysis. The Federal Reserve implemented a 25 basis-point rate hike at their meeting in July, bringing their benchmark lending rate to a target range of 5.25 - 5.50%. This move brings the federal funds rate to the highest level since 2001.  ISM Manufacturing PMI rose slightly to 46.4 in July, up from 46.0 in June but remaining in contraction for a ninth consecutive month. Durable goods orders rose 4.7% in June, the fourth consecutive month of growth. The strength in orders was largely led by transportation equipment which increased 12.1% during the month. Excluding transportation, new orders increased 0.6%.

The personal consumption expenditures (PCE) price index rose at a 3.0% annual rate in June, the lowest annual level since March 2021. Core PCE advanced 0.2% during the month to a 4.1% annual rate, the lowest level since September 2021. The consumer price index (CPI) rose at a 3.2% annual rate in July, up from 3% in June. Core CPI, which excludes food and energy prices, rose at a 4.7% annual rate during the month, the lowest level since October 2021. The producer price index (PPI) rose 0.3% in July to a 0.8% annual rate. Core PPI advanced at a 2.7% annual rate during the month.  The NFIB Small Business Optimism Index improved to 91.9 in July but remained below its historic average for the 19th consecutive month. 21% of owners reported that inflation was their single most important problem in operating their business, down three points from June.

Ohio Employment & Economic Insights

The Ohio Tax Credit Authority approved assistance for four economic development projects in July. Collectively, the projects are expected to create 781 new jobs earning over $85M in payroll, retain 156 jobs, and spur nearly $47M in investments across the state.  A total of $135M in grant awards will go towards supporting 90 critical water infrastructure projects in 64 counties across the state as part of the fifth round of the Ohio BUILDS (Broadband, Utilities, and Infrastructure Local Development Success) water infrastructure program.

Lt. Governor Jon Husted, who leads the Governor’s Office of Workforce Transformation, has announced six regional hubs across the state to help expand the efforts of Ohio’s Broadband and 5G Sector Partnership locally. The hubs bring together regional partners to raise awareness of in-demand broadband careers, establish more local training programs, and maximize state and federal funding.  Ohio’s community colleges, technical centers, local career centers and school districts announced to offer new programs and career pathways for students who want to work in the semiconductor manufacturing industry.

Forbes Advisor has named Columbus (#4), Cincinnati (#5), and Cleveland (#20) as top cities for young professionals, based on employment and pay, housing affordability, lifestyle, and cost of living. Columbus climbed to #5 in Midwest Startups’ 2023 rankings of the Best of the Midwest; Cincinnati and Cleveland came in at #10 and #13, respectively.  Six Ohio companies were included on Fortune’s Global 500 list, including Cardinal Health (#34), Marathon Petroleum (#36), Kroger (#58), Procter & Gamble (#154), Nationwide (#275), and Progressive (#287).

US News & World Report has named Cleveland Clinic one of 22 Best Hospitals of 2023-2024. Cleveland Clinic was also named the #1 hospital in the U.S. for cardiology, heart and vascular surgery for the 29th year in a row. Other specialties in which Cleveland Clinic ranked among the top-10 in the U.S. for include Urology (#2), Rheumatology (#3), Geriatrics (#6), Obstetrics & Gynecology (#6), and Gastroenterology & GI Surgery (#8).

Ohio Company News

• Wells Fargo intends to open a technology hub in Central Ohio, creating 585 jobs earning $60 per hour.
• R.E. Warner & Associates plans to add 88 jobs as a result of a $4M expansion in North Olmsted.
• Michigan Metal Coatings intends to create 60 full-time positions as a result of a new location in Sidney.
• General Tool Company broke ground on a $8.5M, 56,000 SF facility in Evendale with plans to hire 47.
• DSG-Canusa plans to invest $8M in a new site in Fairfield, adding 26 jobs.
• Coca-Cola Consolidated, the brand’s largest independent bottler, is building a new $100M, 400,000 SF distribution center in south Columbus, retaining 325 jobs with plans to add 12 more.
• Precision Welding & Installation plans to add 10 jobs as part of a $600,000, 8,000 SF expansion in Hopewell Township.
• Nidec Press & Automation in Minster has acquired Napoleon-based Automatic Feed Company.
• Synthica Energy has closed on a large equity investment from Goldman Sachs as the Blue Ash-based company recently broke ground on its first renewable natural gas production facility in Ohio.
• Cleveland Clinic led a $17.6M series B round for Enspire DBS, a Cleveland company developing neuromodulation therapy.
• Breezeline plans to invest $100M+ in Ohio, an initiative that has already doubled its fiber network capacity to 1,200 Gb.
• Watch Communications has deployed next generation fixed wireless access from Tarana to 1.4M households and business across Ohio, Illinois, Indiana, and Kentucky, providing up to 400 Mbps speeds.
• OhioHealth has partnered with Zipline to integrate its electric drone delivery into OhioHealth’s network.
• Copeland was awarded a $2.5M U.S. DOE grant to support R&D of an innovative heat pump technology.

For more information, contact:

Drew Peters & Matthew Ellerbrock, JobsOhio Research

peters@jobsohio.com / ellerbrock@jobsohio.com