Ohio’s unemployment rate has never been so low for so long.

The state’s unemployment rate was 3.7% in January, up from 3.6% in December, according to state unemployment data released Friday.

It has now been 14 straight months that Ohio’s unemployment rate has been below 4%, the longest stretch in data going back to 1976, the state said Monday.

“The Ohio unemployment rate ticked higher to 3.7%, but this remains a much lower rate than usual for the state,” Ben Ayers, senior economist for Nationwide, said in a research note on Monday. “Lack of labor remains a pressing issue for many employers, driving up wages and holding back production. The Ohio labor force stagnated over the second half of 2023 and into January, further restricting labor supply and limiting growth.”

In May and June the rate was 3.3%, the lowest on record. There have been times in the past when the unemployment rate has been below 4%, but never for this long.

Part of the issue is that labor markets remain tight. The state said there were 212,000 unemployed workers in January, higher than what it’s been the past few months, but still historically low. In fact, Ayers said there are 50% more job listings than unemployed Ohioans.

“The labor force participation rate remains stuck just below 62% and shows little sign of returning to pre-pandemic trends,” he said. “As a result, there continues to be about 1.5 job openings for every unemployed worker in Ohio – evidence of lingering tight labor conditions.”

Ohio job gains slow in ’23

Revised jobs data show Ohio added 47,700 jobs from January ’23 to January ’24, the fewest since the pandemic.

In the prior year, the state added 119,000 jobs and the year before that, 146,000 jobs.

On top of fewer jobs in ’23, the recent gains have been concentrated in just a handful of sectors.

Last year, the sector that covers health care and private education added 35,000 jobs and the local, state and federal government sector added 17,700 jobs.

Several sectors actually lost jobs, including construction (1,900 jobs), professional and business services (5,000 jobs), finance (2,900 jobs), and trade, transportation and utilities (4,800 jobs).

Jobs gains off to a good start in ’24

The state added 12,900 jobs in January, giving Ohio another new jobs record with total employment at 5.64 million.

The professional and business sector led the way with a gain of 7,400 jobs and government added 6,500 jobs.

Restaurants lost workers in January, likely a come down from the holidays, Ayers said. Construction employment fell for the third straight month.

“The Ohio labor market continues to show signs of growth despite widespread cost pressures for employers from rising wages and elevated interest rates,” Ayers said. “The strong headline gain in January masked some underlying weakness in many sectors. But the overall picture for workers in Ohio remains positive with few job cuts and rising wages in most sectors.”

mawilliams@dispatch.com

@BizMarkWilliams