Ohio's job market weakened in September, with unemployment rising and labor force participation falling, analysts report. The state saw a decrease in jobs last month, alongside a continued decline in the number of working-age people actively seeking employment.
The Ohio Department of Job and Family Services reported that state employers shed 5,000 jobs last month, according to Policy Matters Ohio. Unemployment rose from 3.3% in August to 3.4% in September, Policy Matters Ohio noted. Inflation also saw an increase, from 3.4% to 3.7% during the same period, Policy Matters Ohio reported.
Meanwhile, participation in the labor force continued a decline that began in June of 2025. By September, Ohio's participation rate stood at 61.2%, compared to a national rate of 61.8%, the Buckeye Institute stated.
Analysts attribute job losses in some sectors to rising prices and interest rates. People are leaving the labor force as the state's population ages, working-age immigrants are deported, and wages fall relative to inflation, analysts report.
The measure of labor force participation doesn't include those who have aged out, only working-age, able-bodied individuals not looking for a job. These people are not counted in the unemployment rate. Policy Matters reported that despite Ohio's working-age population growing by 4,000 in September, labor force participation still fell.
The nonpartisan National Bureau of Economic Research found in April that large deportations hurt the labor force, potentially leading to drops in employment among native-born male workers. Previously, mass deportations appeared to remove many foreign-born men from the country over the past two years, 80% of whom were employed. Many of these jobs were in sectors like construction and agriculture that native-born workers can be reluctant to fill, according to the source material.
Rea S. Hederman Jr., Vice President of Policy at the Buckeye Institute, stated that inflation is making many Ohio workers poorer. He noted in a written statement, “Ohio’s workers are struggling as inflation-adjusted wages have fallen.” Hederman also added that private-sector hiring remained flat over the past two months, despite upward revisions to the August jobs report.
The source material notes that Americans were already facing a post-pandemic affordability crisis. This situation can be exacerbated by factors like high tariffs and international conflicts. People can become so financially stressed they cannot afford to work, with costs such as child care, transportation, and clothing making poorly paid jobs financially unfeasible.
Molly Bryden, a researcher at Policy Matters Ohio, views these trends as an “early-warning signal to lawmakers.” Bryden stated that federal and state lawmakers must re-prioritize and focus on worker supports to draw people back to the labor force. She further urged expansion of pathways to quality jobs with family-sustaining wages, and restoration of affordability through shared prosperity, rather than pursuing “pro-business” policies that leave working families behind.
