Ohio’s Unemployment Rate Reaches Historic Low for Third Consecutive Month

Key Economic Insights

• U.S.: The Consumer Price Index rose at a 3.0% annual rate in June, the lowest level in more than 2 years. The NFIB Small Business Optimism Index rose to a 7-month high of 91 in June.

• Ohio: Ohio’s unemployment rate declined to a record low of 3.4% in June. CNBC ranked Ohio the #12 Best State for Business in 2023. Swyft Filings ranked Ohio the #3 best state for small businesses in 2023.

U.S. Insights

Inflation continued to decelerate in June, with the Consumer Price Index (CPI) rising 0.2% during the month to a 3.0% annual rate, the lowest level since March 2021. Core CPI, which excludes food and energy, advanced 0.2% during the month to a 4.8% annual rate, the lowest level since October 2021. The Producer Price Index (PPI) rose only 0.1% in June to a 0.1% annual rate, the lowest annual level since August 2020 and an encouraging sign that supply-driven inflationary pressures are continuing to ease. U.S. retail sales increased 0.2% in June, the third consecutive month of growth. Retail sales have risen 1.5% over the last 12 months.

Industrial production declined 0.5% in June for a second consecutive month. Capacity utilization declined to 78.9% during the month, a rate that is slightly below its long-run (1972–2022) average. The U.S. labor market continues to show signs of strength as weekly jobless claims declined by 9,000 to a two-month low of 228,000 during the week ended July 15. Continuing claims increased by 33,000 to a total of 1.754M during the week ended July 8.

The NFIB Small Business Optimism Index rose to a 7-month high of 91.0 in June, up from 88.4 in May. Inflation and labor quality tied as the top small business concerns at 24% each. Only 25% of small business respondents plan capital outlays in the next few months, a historically low reading.  The Conference Board Leading Economic Index (LEI) for the U.S. declined 0.7% in June following a decline of 0.6% in May. The LEI is down 4.2% over the six-month period between December 2022 and June 2023, a steeper rate of decline than its 3.8% contraction over the previous six months (June to December 2022).

Ohio Employment & Economic Insights

Ohio's unemployment rate was 3.4% in June, down from 3.6% in May and below the U.S. unemployment rate of 3.6% for June 2023. For the third consecutive month this marks the lowest unemployment rate recorded for Ohio since reporting started in 1976. Nonagricultural wage and salary employment increased by 1,000 over the month from a revised 5,621,500 in May to 5,622,500 in June. The labor force participation rate in Ohio was 62.1% in June, unchanged from May and up from 61.7% in June 2022.

Ohio ranked #12 in CNBC’s America’s Top States for Business 2023, improving from #15 overall in 2022 and receiving a top-10 score in several categories including Cost of Living (#3), Cost of Doing Business (#4), Access to Capital (#5), and Infrastructure (#6). A recent analysis from Swyft Filings ranked Ohio the #3 best state for small businesses in 2023, based on a composite score across categories including cost of doing business, economic health and workforce productivity, fees and taxes, support via grants and loans, and business survival data.  

Ohio totaled $496.1M in venture capital deal activity across 91 deals through the first two quarters of 2023, ranking #19 in the U.S. for highest VC deal value according to the latest Q2 2023 Pitchbook-NVCA Venture Monitor report. The Ohio Third Frontier awarded a total of $1.1M in grants to eight organizations throughout the state to support technology entrepreneurs in bringing innovative new products to market.

Cincinnati hosted a sold-out Black Tech Week last week for its second consecutive year since relocating to the city. USA TODAY recognized 22 Ohio companies in its inaugural list of America’s Climate Leaders, recognizing companies leading the way in reducing greenhouse gas emissions.

The Ohio Department of Transportation will invest $90M to fund local and state transportation projects in the Silicon Heartland ahead of Intel’s arrival. Governor DeWine announced the future locations of 27 new EV charging stations along Ohio interstates, making Ohio the first state to announce charging sites as part of the National Electric Vehicle Infrastructure (NEVI) Program. The state of Ohio will receive a $14.2M Grid Resilience Formula Grant from the U.S. Department of Energy to modernize the electric grid and reduce the impacts of extreme weather and natural disasters for Ohioans. In May, a total of 367 employers were approved for funding through Ohio’s TechCred program, providing 4,297 tech-focused credentials to Ohioans.

Ohio Company News

• Maddox Industrial Transformer has opened a new 45,000 SF production facility in Batavia with plans to create 65 new jobs.
• Preventx will open a specialized lab in Blue Ash, adding 17 jobs.
• Top Property Holdings will receive a $2M Rural Industrial Park Loan to assist financing an industrial park in North Jackson, including a 76,000 SF building. Approximately 66 jobs are expected to be created.
• Martin Brothers Enterprises will receive a $300,000 Regional 166 Direct Loan to assist in financing the purchase of a 6,000 SF commercial building in Toledo. Approximately 6 jobs are expected to be created.
• BCFAB will receive a $667,500 Regional 166 Direct Loan to assist financing a new 14,875 SF building and the purchase of equipment in Fort Jennings. Approximately 5 jobs are expected to be created.
• Locus Fermentation Solutions has announced a 100,000 SF expansion at its location in Solon.
• EdgeEnergy has announced EdgeEV, a National Electric Vehicle Infrastructure (NEVI) compliant single-phase solution designed to support DC fast chargers along rural highways.
• Metronet has rolled out fiber internet access for residents and businesses in Findlay.
• Cleveland Clinic Laboratories and LabConnect have announced a strategic alliance to accelerate clinical trials and connect patients to new medicines for improved patient care.
• The University of Cincinnati and Amplicore have begun a DoD-funded clinical trial of a regenerative pharmaceutical solution for meniscal tears, which affect the military population higher than average.
• Breeze Airways will add seasonal nonstop flights to Fort Myers, Florida from both Columbus and Akron-Canton airports.
• BioChip Labs was awarded a $150,000 grant to commercialize a medical technology that can be used to improve the outcomes of patients who have red blood cell disorders.
• Genosera won a $150,000 grant to commercialize a new therapeutic aimed at treating GNE Myopathy.
• Kilele Health was granted $150,000 to commercialize a sensor that monitors heart failure patients.
• NeoIndicate was awarded a $150,000 grant to commercialize a therapeutic that helps treat invasive cancers with tumor-specific imaging agents.
• Neucore Bio won a $150,000 grant to commercialize a therapeutic for treating rare genetic disease.
• PHope was granted $150,000 to commercialize a medical device that treats cardiopulmonary diseases and respiratory failures.
• Medical Interface Solutions was awarded $100,000 to commercialize a phone app that boosts stroke detection accuracy.
• Raider Technologies won a $100,000 grant to commercial new radar solutions for Advanced Air Mobility.

For more information, contact:

Drew Peters & Matthew Ellerbrock, JobsOhio Research

peters@jobsohio.com / ellerbrock@jobsohio.com