Akron's unemployment rate hits a milestone in April

Akron's unemployment rate dipped to an all-time low in April as the jobs picture improved to a record level statewide.

Akron's rate dropped to 3.3% last month from 4.2% in March. The previous low of 3.4% in November matched a mark set in December 2021 — with the area continuing to bounce back from a record high 15% unemployment rate set in April 2020 amid shutdowns caused by the COVID-19 pandemic.

The Akron metropolitan statistical area for employment data includes all of Summit and Portage counties. The Canton-Massillon area, which encompasses Stark and Carroll counties, also recorded 3.3% unemployment in April.

Broken down by county, April's unemployment rates were 2.4% for Wayne, 2.7% for Medina, 3.2% for Portage and 3.3% for Summit and Stark.

Employers locally and throughout Ohio continue to add jobs at a brisk rate and as job seekers return to the labor force to take advantage of wage gains and a wide range of opportunities.

Akron's low unemployment rate "is due in part to a robust economy along with a lower labor participation rate as individuals retire or engage in more flexible part-time work arrangements," said Paul Magnus, chief operations officer for Career Development and Placement Strategies.

He said the organization has "seen an increase in companies wanting to expand their pool of applicants. This is a very positive trend that we think will help increase diversity in the workplace while helping to reduce labor shortages."

Ohio's rate dropped to 3.7% last month, down from 3.8% in March, according to state jobs data released last week.

Ohio employers added a robust 18,100 jobs in April and now have added 53,900 jobs since December.

The only states that created more jobs than Ohio last month were California, Texas and Florida, according to federal jobs data released May 19.

The job gains this year now mean Ohio has basically recovered the nearly 900,000 jobs lost during the early days of the pandemic and is about 30,000 jobs away from the state's jobs record set 23 years ago when the state recorded 5.64 million jobs.

The record-low unemployment rate comes amid worries that a recession is on the horizon that would slow job gains or result in job losses. The Federal Reserve has aggressively raised interest rates to put down inflation that hit four-decade highs.

“Despite building concerns about a forthcoming recession, employers in Ohio continue to hire at a brisk pace,” Nationwide Senior Economist Ben Ayers said in a research note. “The surprising strength so far in 2023 shows that recession conditions continue to be delayed by strength within the labor market.

"Eventually, we expect hiring trends to slow and the economy to enter a recession later this year. But this outlook continues to be pushed out by strong worker demand by employers.”

Unemployment rates nationwide have been trending lower

Ohio's unemployment rate peaked at 16.4% in April 2020, weeks into the pandemic, and has been trending lower since those early days when the economy was largely shut down.

The 3.7% rate is the lowest in Ohio in state jobs data going back to 1976 and just above the 3.4% national unemployment rate, which is the lowest since 1969.

Alabama, Arizona, Arkansas, Kentucky, Maine, Maryland, Mississippi, West Virginia and Wisconsin also hit record low unemployment rates in April, according to federal jobs data.

Where are the job gains in Ohio coming from?

Job gains were broad based in April, led by a gain of 6,200 jobs in the leisure and hospitality sector.

That sector was hurt the worst during COVID-19 when restaurants and bars shut down for extended periods. The sector was cut in half during the early days of the pandemic, losing nearly 280,000 jobs, but is now close to recovering those jobs.

There also were gains in professional and business services (3,400 jobs), private education and health care (2,400 jobs), construction (1,600 jobs), and the sector that includes retail and transportation (1,600 jobs).

The jobs are back, but what about the workers?

While coming back, Ohio's labor force remains smaller today than before the pandemic started, and employers have routinely complained about how difficult it is to find workers.

The state jobs report shows just 211,000 unemployed workers in April, and the record low rate reflects a continued tight job market in Ohio, Ayers said.

The record low rate "came despite another increase in the labor force as Ohio workers reenter the workforce to take advantage of strong wage gains and good employment opportunities," Ayers said. "Although still down sharply from pre-COVID levels, the Ohio labor force has increased for six consecutive months, helping to boost hiring trends across the state."

In Akron, Magnus said, successful job seekers "have learned to be proactive in order to identify new opportunities. Increasingly, companies also engage in proactive strategies to recruit and retain employees. This includes employers who increasingly are reaching out to partners such as Ohio Means Jobs of Summit and Medina and other community agencies that can help identify and upskill applicants to meet employer demand."

Mark Williams of the Columbus Dispatch and Anthony Thompson of the Akron Beacon Journal contributed to this report.

This article originally appeared on The Columbus Dispatch: Akron has recovered the jobs lost during the early days of COVID-19