Analysts: Job report continues to show weakening economy

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(The Center Square) – As Ohio’s job market continues to weaken, some analysts are raising concerns of a ripple effect and the potential for an even stronger economic slowdown.

While Ohio’s unemployment rate dipped to 4.5% from 4.8% in September and below the national average of 4.6% for the first time in more than a year, the number of people actually in the workforce fell.

Ohio’s labor participation rate is 62.3%, below the national average of 62.5.

“Despite the improved unemployment rate, November’s private-sector employment is 14,000 jobs below August’s peak, confirming that Ohio’s job market is weakening,” said Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute. “The belated November report confirms that Ohio’s job market struggled in the fall of 2025, with private-sector employment falling since Labor Day and more Ohioans leaving the job market over the same period.”

More than 19,000 jobs were lost in the service-provider sector, with the bulk of those coming in leisure and hospitality, trade, transportation and utilities. Also, public sector employment dipped by 6,700.

“Steep losses in trade, transportation, and utilities jobs may signal deeper economic challenges with ripple effects into other sectors, potentially indicating supply chain disruptions due to tariff turbulence and stubborn inflation,” said Molly Bryden, researcher with Policy Matters Ohio. “The leisure and hospitality sector continued to weaken, reinforcing financial insecurity among Ohio’s lower-paid workers, along with broader economic concerns demonstrated by declining consumer confidence in the economy.”

The new jobs report followed the delayed September report that showed the state’s job market weakening, with a loss of 2,000 jobs and more people leaving the labor force.

There was no report for October due to the federal government shutdown.

A recent survey of Ohio economists blamed the lack of jobs for Ohio’s population loss.

Scioto Analysis noted Ohio Department of Development data predicts the state will lose more than 675,000 people by 2050, and by 2030, Ohio will drop from the seventh most populous state to the ninth.

All this comes as the state has struggled with unemployment and workforce participation over the past year and a half.