Are you considering operating a business in Cleveland? If you are, the first thing you need to look at is how the current labor market will affect your ability to staff your company. In the early 2010s, Cleveland underwent a large-scale economic development that got many companies to take notice and consider entering the burgeoning economy. A lot has changed in Cleveland since then, most notably the COVID-19 pandemic and the business shutdowns that followed. So, it’s about high time we look at how the economy since then is faring, and how it compares to numbers for 2020 using the statistics released by the U.S. Bureau of Labor Statistics.
Civilian Labor Force
The U.S Bureau of Labor Statistics for much of its data combines the Cleveland and Elyria areas to account for most of Northeast Ohio. As of August 2022, the number of workers available in the area is 1,052,751, with 1,003,889 currently working. To directly compare to 2020, in August 2020, the number of workers in Cleveland/Elyria was 1,007,134, and 908,741 were employed. From this data, we can see the proportion of workers and those currently employed has increased over the two years. This shows that Northeast Ohio has been recovering from the COVID-19 pandemic and is trending upward as more time passes.
Unemployment Rate
Unemployment has also greatly improved since the onset of the Pandemic. In 2020, the unemployment rate for August was a staggering 9.8% in the Cleveland/Elyria area. However, by August 2022 the rate has lowered to 4.6%. And although the year has not ended yet, it is safe to say that unemployment will continue to drop seeing the recent trends. This year is a great improvement over the Pandemic numbers, but the current unemployment rate is still below the national average of 3.8%. However, even though the rate may be slightly higher in Northeast Ohio, unemployment is decreasing with the national trend.
Growth in Employment in Select Industries since August 2021
Almost every nonfarm industry has seen employee growth since 2021, except the financial activities, professional/business services, and education/health services sectors. Those three saw a drop of -2.8, -1.1 and -0.9 percent respectively. The two sectors with the greatest increase are the leisure/hospitality and other services industries. Those have increases of 12.7 and 12.0 percent respectively, most likely due to the lifting of pandemic-related travel restrictions.
Manufacturing took a huge hit during the pandemic, and although it didn’t have as massive of a bounce back as hospitality did, it is steadily on the rise. From August 2021 to August 2022, it had an increase of 3.2% in employment. Numbers haven’t hit pre-pandemic levels yet, but the industry is still recovering and following the national recovery trend. The Cleveland area is slightly trailing behind in terms of employment, but the recovery is promising for Cleveland’s future.
What Does This Mean for Businesses?
Northeast Ohio is on the path to recovery. 2020 was a major setback for the American economy, but Cleveland is back on the upswing. Although slightly below the national average in a numerical sense, Cleveland is keeping pace with the general trends being set by the nation’s recovery. Most major industries are on the rebound, and the ones trailing aren’t too far behind. Leisure and hospitality specifically are doing well, along with other service industries, and manufacturing is currently amid a strong recovery. Unemployment has dropped, so it’s a great time to invest in Cleveland.
If you’re interested in starting or growing your business in Northeast Ohio, consider Area Temps for your staffing. With seven offices across the region and an extensive database of applicants, Area Temps can help you find your temporary or permanent crew to help you set up shop. Click here or contact one of our offices for more information.
