The economy of state of Ohio ranks 8th largest of all the states in the U.S. As of 2011, the state’s GDP was $484 billion, while its per capita income stood at $41,920. During, the same period, her GDP accounted for 3.2% of the U.S which was a slight decline (3.7%) a decade earlier. In fact, it is believed that the economy of Ohio has grown more slowly than the economy of the whole US (“Federal Reserve Economic Data – FRED – St. Louis Fed”). It is interesting to point out that the GDP of Ohio increased by an average rate of 2.4% annually for the decade ending in 2011, while the GDP for the United States grew by 3.9% annually. With the decline in the economy of the United States, there are high chances that there will be adverse effects on the business as well as the rate of employment in Ohio.
It is worth noting that the economy of the United States will have major impacts on the employment rate in the state of Ohio. After the recent economic recession, Ohio job growth has mirrored the US average. Nevertheless, between 1996-2009, the average employment growth rate in Ohio was slower than the average of the United States especially when there was a positive growth and declined faster than average in instances of negative growth(“Ohio Economy At A Glance”). Much of this divergent may be as a result of the slower population growth and the structure of her economy. Although the economic position of Ohio will be largely dependent on the national economy, it is essential to point out that Ohio still has some responsibility for her economy. Economic performance will vary across the different states.
For example, it is critical pointing out that Ohio has a balanced economy that is not overly reliant on a single industry as it is the case in most states. The state’s economy includes manufacturing (23%), Wholesale trade (12%), retail (11%), healthcare (10%), construction (7%), and professional services (6%) finance and insurance (5 %), and transportation and warehousing (3 %). From these figures, it is evident that a shrink in one sector of the economy will not hurt the economy of Ohio due to the different alternatives(“Ohio Economy At A Glance”). Having various aspects contributing to the national basket is beneficial for the business and employment reasons.
For one, considering quarterly national GDP by industry, transport, warehousing, healthcare, social assistance, professionals and technical services were the leading contributors to the overall increase in the national economic growth for the second quarter of 2016. In fact, 15 out of the 22 industry groups contributed to the overall 1.4% increase in real GDP for the same quarter. This implies that the business and level of employment in Ohio and the US were at per during the same period (“U.S. Economy At A Glance”). For instance, the unemployment rate for Ohio stood at 5.0 as at June 2016 while the U.S unemployment rate at the same time was at 4.9. The statistics indicate that the Ohio’s economy mirrors that of the United States.
It is interesting to point out that nonfarm employment accounts significantly to the level of employment in the state. The nonfarm payment has been on a tremendous rise in the U.S, and if the trend continues, there is a high likelihood that the unemployment rate will decline in future. Further on, there are projections of growth in education, health sector, professional and business services (“U.S. Economy At A Glance”). Such in growth in these areas will also lead to improved levels of business and employment in Ohio. Although there is projected loss in the manufacturing sector at the national level, the decline may not have a large overall effect on the business and unemployment in Ohio. In conclusion, Ohio’s economic future looks bright than the nation as a whole.
“Federal Reserve Economic Data – FRED – St. Louis Fed”. Research.stlouisfed.org. N.p., 2016. Web. 9 Dec. 2016.
“Ohio Economy At A Glance”. Bls.gov. N.p., 2016. Web. 9 Dec. 2016.
“U.S. Economy At A Glance”. Bea.gov. N.p., 2016. Web. 9 Dec. 2016.
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