Ohio struggles with rising unemployment as small businesses face hiring challenges

Ohio's unemployment rate has shown a troubling increase, reaching 4.7% in February 2025, up from 4.6% in January. This rise comes in the context of ongoing challenges faced by small businesses in the state, which continue to report difficulties in filling open positions. According to the National Federation of Independent Business (NFIB) State Director Chris Ferruso, many business owners are expressing their frustration at the lack of qualified applicants. In March 2025, 53% of small businesses attempted to hire, but nearly half reported receiving few or no suitable applications for their job openings. The job market's tightness appears to be affecting various sectors unevenly. The construction industry saw job openings increase by 10 points from February and 12 points from the same period last year, while transportation openings rose significantly by 23 points. Manufacturing also reported a similar trend. These developments indicate that despite the creation of 25,000 new private sector jobs in the state during February, significant barriers still exist for small businesses striving to fill their vacancies. The data from the Ohio Department of Job and Family Services highlights a concerning trend of rising unemployment numbers in the state, which have increased for 12 of the last 13 months. Ohio's jobless rate is now exceeding the national average of 4.1%. Analysts attribute this rise in unemployment to slow economic growth projected for the latter half of 2024. Despite a slight improvement in the labor force participation rate—now at 62.5%—Ohio is still grappling with an overall trend of higher unemployment rates not seen in the past three years. Compounding these issues are the impacts of inflation, as recently released federal data indicated that prices have risen faster than anticipated in February 2025. This inflation contradicts previous federal reports and may reflect economic uncertainty, contributing to the challenges small businesses face in hiring effectively. The persistent mismatch between job openings and qualified candidates is sparking conversations regarding workforce development and the need for a reassessment of strategies to bolster Ohio's labor market.