Ohio's unemployment rate hit a milestone last month, dropping to an all-time low as the state's employers 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.

The rate dropped to 3.7% last month, down from 3.8% in March, according to state jobs data released Friday.

Ohio employers, meanwhile, 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 was California, Texas and Florida, according to federal jobs data released Friday.

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. That 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."

mawilliams@dispatch.com

@BizMark

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