The monthly tally of Northeast Ohio private payrolls in August continued on its roller coaster of up one month and down the next, with the Ahola Crain’s Employment (ACE) Report showing a decrease of 3,626 jobs from July, a 0.31% decline.
Longer term, though, employment in the seven-county Akron-Cleveland metro area was 8,340 jobs higher in August than a year ago, a 0.71% increase.
“The economy is in its eighth year of economic recovery and still remains in its expansion phase of a payroll cycle,” reported Jack Kleinhenz, the Cleveland Heights economist who created the ACE model. “It has been on a slow path of economic growth, but the labor market continues to maintain momentum.”
Statewide, nonagricultural wage and salary employment grew by 77,000 jobs year-over-year, a 1.35% increase, based on a survey by the U.S. Bureau of Labor Statistics released last Tuesday, Sept. 20 by the Ohio Department of Jobs and Family Services.
Employment in all 88 Ohio counties decreased by 2,000 positions, from 5,505,400 in July to 5,503,400 in August.
Analyzing the state data, the nonprofit Policy Matters Ohio think tank, which is supported by foundations, community organizations and unions, reported that Ohio’s 12-month job growth rate of 1.35% continues to trail the national average of 1.7%, but it represents an improvement over the pace of job creation since the official start of the last national recession in 2007.
“Ohio needs many more months of five-figure employment growth to close the job gap, so (August’s) losses are disappointing,” said researcher Hannah Halbert in a press release. “However, the August loss is slight, and didn’t come close to wiping out recent gains. That’s an improvement from the earlier trend.”
Although Northeast Ohio and the state posted job losses, Kleinhenz noted that the country posted a less-than-expected gain of 151,000 jobs. CNBC reported that Wall Street economists were expecting the nonfarm payrolls report to show a gain of 180,000 in August.
“This figure still remains above the required gain to keep the unemployment rate moving down on a slow, yet steady, pace,” Kleinhenz said. “It is important to note that as the economy gets closer to its full employment — and we are getting close — finding workers increases in difficulty.”
Kleinhenz cited Bureau of Labor Statistics data that show job openings “rose sharply in July, and the rate of openings was a record high. Meanwhile, the increase in hiring was not as great. Openings have grown faster than hires for nearly every month over the last year and a half.”
Hirings differ from job gains since job gains are net of hirings, firings and employment lost from deaths.
“All in all the data suggest that firms are having a challenging time filling positions but also indicating that workers are moving to jobs that better suit them and their efficiencies,” Kleinhenz reported.
|Month||Non-Farm||Small (1-49)||Mid-Sized (50+)||Goods-producing||Service Producing|
|Recent Month’s Estimated Change||Non-Farm||Small (1-49)||Mid-Sized (50+)||Goods-producing||Service Producing|
|July ’16 to Aug ’16||(3,626)||(1,331.90)||(2,294)||(2,724)||(902)|
|Diff from Aug 2015||8,340||3,484||4,856||244||8,096|
|Trend||Non-Farm||Small (1-49)||Mid-Sized (50+)||Goods-producing||Service Producing|
September 23, 2016