Ohio’s labor force participation rate continues to decline
Ohio Governor Mike DeWine and Lt. Governor Jim Tressel held the fifth stop of their statewide Heart of Opportunity Tour at Centrus Energy in Piketon.
Ohio’s unemployment rate dropped to 3.4% in July 2026, while its labor force participation rate also fell to 61.4%, according to numbers from the Ohio Department of Job and Family Services.
The Buckeye State’s unemployment rate dropped from 3.6% in June and 4.5% in July 2025, while the labor force participation rate was down from 61.6% in June and 62.4% in July 2025.
“Across Ohio, every region is experiencing new business growth,” Republican Gov. Mike DeWine said in a release about the Heart of Opportunity Tour he is taking with Republican Lt. Governor Jim Tressel.
Nationally, the unemployment rate was 4.1% in July, down from 4.2% in June and 4.3% in July 2025.
“While the low unemployment rate is positive, in Ohio and across the nation, it is linked to declining labor force participation, with unemployed workers leaving the job market, thereby lowering the unemployment rate,” Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute, said in a statement.
“Nationally, there are indications of a cooling job market, with total employment declining, and only 30,000 new private-sector jobs added nationwide in July,” Hederman added. “Unlike much of the country, Ohio saw positive job growth with 9,600 new private-sector jobs. However, a 3,000-job downward revision to Ohio’s June jobs report is troubling.
The number of unemployed workers in the state in July was 200,000, down from 209,000 in June and 266,000 a year ago.
“With a declining labor force participation rate, Ohio policymakers need to focus on attracting more employers to the Buckeye State, and that starts with preparing Ohio’s workers for the in-demand, high-skilled jobs that 21st century employers need to fill,” Hederman said. “In a forthcoming policy paper, The Buckeye Institute will offer specific policy recommendations lawmakers can adopt to build on Ohio’s solid economic foundation and make the state even more attractive to employers.”
