Cincinnati, Hamilton County and Greater Cincinnati experienced dramatic drops in the seasonally unadjusted unemployment rate between January and February, according to new data released by the Ohio Department of Job and Family Services (ODJFS).
In Cincinnati, the seasonally unadjusted unemployment rate dropped to 7.5 percent in February, down from 8.6 percent in January. The civilian labor force, which measures the amount of people working and seeking jobs, also dropped from 139,400 to 138,900, which means less people were looking for work. The amount of people employed rose from 127,400 to 128,600 and the amount of people unemployed dropped from 12,000 to 10,300.
At the county level, the civilian labor force remained steady, while the seasonally unadjusted unemployment rate dropped from 7.9 percent in January to 7.1 percent in February. Across all of Greater Cincinnati, the unemployment rate dropped from 8 percent to 7.4 percent, even as the civilian labor force grew by 1,300 — a sign that more people in the region are looking for work.Michael Jones, research director at the University of Cincinnati Economics Center, says the report was encouraging and consistent with the past few years’ trends: “We’ve seen a lot of activity in the Cincinnati area. We know a few companies have been actively growing their businesses.”
The gains were also improvements in a year-over-year comparison. In February 2012,
Cincinnati’s seasonally unadjusted unemployment rate was 8.4 percent,
Hamilton County’s rate was 7.8 percent and Greater Cincinnati’s rate was
8.2 percent. The civilian labor force was also larger in
Cincinnati, Hamilton County and Greater Cincinnati in February 2012, but less people were employed across-the-board.
Jones says looking at employment numbers is a much better way to gauge economic health than looking at the size of the civilian labor force. While employment purely measures job growth, the civilian labor force can be driven by demographic changes — including an aging, retiring population — and people going back to school full-time, according to Jones.
In February, Ohio’s seasonally unadjusted unemployment rate was 7.6 percent, and the U.S. seasonally unadjusted unemployment rate was 8.1 percent.
Jones says Cincinnati and Ohio are poised to continue strong growth: “We have a strong health care sector. As health care continues to be an important component of our economy, … Cincinnati is very well positioned to capture that growth.”
State and federal numbers are typically adjusted to account for seasonal employment patterns, while local numbers are not.
Unemployment numbers are calculated through a household survey. The unemployment rate gauges the amount of unemployed people looking for work in contrast to the total civilian labor force. Since the numbers are derived from surveys, they are often revised in later months.
Update (3:54 p.m.): This story was updated with comments from Michael Jones, research director at the University of Cincinnati Economics Center.
A new report has found that some of the best jobs in Cincinnati in 2020 will not require college degrees.
The report, which was done in a collaboration by Agenda 360, Partners for a Competitive Workforce, the Strive Partnership and Vision 2015 using U.S. Bureau of Labor Statistics data, found that 46 percent of jobs in 2020 paying the city average of $33,310 and more will only require a high school diploma or an equivalent to a high school diploma. Twenty-four percent will require bachelor's degrees, and 15 percent will require associate's degrees.
The best-paying, fastest-growing jobs by 2020 will be health care practitioners and any job involving computers and math and science, according to the report. Business and financial jobs will continue being among the best paying, but growth in that area is expected to be fairly timid. Health care support jobs will grow very quickly, but those jobs typically fall below the median wage.
The report also found some of the industries that workers might want to avoid. Food service will grow slowly and pay the worst, the report found. Transportation and production will pay slightly better, but they won't grow much.
The report also found that Cincinnati will continue to grow and be among the top economies. The report estimated that Cincinnati will add 106,115 new jobs by 2020. That should bring Cincinnati to slightly more than 1 million jobs, putting it ahead of competitors Cleveland, Columbus and Austin, Tex. However, Cincinnati will still lag behind Minneapolis, Denver, St. Louis and Pittsburgh in the jobs market.
The full report can be read here.
JobsOhio and other privatized development agencies have created scandals and potential conflicts of interests instead of jobs, claims an Oct. 23 report from Good Jobs First, a research center founded in 1998 that scrutinizes deals between businesses and governments.
The report looked at privatized development agencies in seven states, including Ohio, and found that many of the same problems and scandals appear from state to state.
“These experiments in privatization have, by and large, become costly failures,” the report found. “Privatized development corporations have issued grossly exaggerated job-creation claims. They have created ‘pay to play’ appearances of insider dealing and conflicts of interest. They have paid executives larger salaries than governors. They have resisted basic oversight.”
The report focuses much of its findings on JobsOhio, a privatized development agency that Gov. John Kasich and Republican legislators established in 2011 to replace the Ohio Department of Development. The agency uses tax subsidies and other financial incentives to attract companies to Ohio with the intention of creating jobs.
But the report states JobsOhio “assembled a board of directors whose members included some of (Kasich’s) major campaign contributors and executives from companies that were recipients of large state development subsidies. It received a large transfer of state monies about which the legislature was not informed, intermingled public and private monies, refused to name its private donors, and then won legal exemption (advocated by Gov. Kasich) from review of its finances by the state auditor.”
It found similar issues in privatized development agencies in Wisconsin, Arizona, Indiana, Florida, Rhode Island and Michigan. In some cases, the scandals have cost states millions of dollars with little job creation to show for it, according to the report.
The latest report concurred many of the findings in a similar 2011 report from Good Jobs First, which sought to warn states, including Ohio, about the potential risks of privatized development agencies.
For JobsOhio, a major cause for concern in the report is how difficult it is to hold the agency accountable. State legislators have approved multiple measures that shield JobsOhio from public scrutiny, including exemptions that exclude the agency from public records laws, open meeting rules and the possibility of a full public audit.
Some of the controversy also focuses on how the state funds JobsOhio.
“The proposal called for ‘leasing’ the state liquor profits ($228 million the year prior) for up to 25 years to JobsOhio, which would eventually issue $1.4 billion in bonds to pay for the use of the funds,” according to the report. “Critics charged that this was not a fair market price for profits that could potentially amount to $6 billion over the term of the agreement.”
The report laments that the privatized and secretive agency represents a shift for Ohio, which the report claims “was an early practitioner of online subsidy disclosure.”
Good Jobs First concludes privatized development agencies perpetuate an economic environment in which big companies already have too much say.
“The privatization structures we describe here, including the increasing use of corporate seats for sale on governing or advisory boards, absolutely favor large businesses that have the money and executive staff time to pay and play at such levels,” the report concluded. “But small businesses already get short shrift in economic development resource allocation, and they are still suffering the most in the Great Recession’s aftermath.”
The organization also takes issue with the idea that public agencies aren’t “nimble”: “In all of our years tracking development deals, we have yet to hear of a state agency that lost an important deal because it failed to provide labor market or real estate or incentive data in a timely manner.”
Asked about the report, Kasich spokesperson Rob Nichols responded in an email, “We don't pay much attention to politically-motivated opponents whose mission is to combat job creation.”
Kasich and other Republicans claim JobsOhio’s privatized, secretive nature is necessary to secure job-creating development deals with private companies in an economic environment that, through the Internet and globalization, moves more quickly than ever before.
Democrats, including gubernatorial candidate Ed FitzGerald, claim the agency is ripe for abuse, difficult to hold accountable and unclear in its results.
State Auditor Dave Yost plans to release an audit of JobsOhio soon, but no specific date or time frame is set for the release. The audit was granted prior to state legislation that barred the state auditor from doing a full sweep of JobsOhio’s financial details.
The full report:
State Sen. Tim Schaffer (R-Lancaster) is introducing legislation Thursday that would attach mandatory drug testing to welfare benefits, even though similar policies have proven to be costly with little gain in other states.
“It is time that we recognize that many families are trying to survive in drug-induced poverty, and we have an obligation to make sure taxpayer money is not being used to support drug dealers,” Schaffer told The Columbus Dispatch. “We can no longer turn a blind eye to this problem.”
Under the proposal, welfare recipients in three counties would be required to take a drug test if they admit in a questionnaire to using drugs in the past six months. Children, who make up a bulk of welfare recipients, would be exempt. (In June, 24,443 adults and 105,822 children obtained welfare benefits in Ohio, according to data from the Ohio Department of Job and Family Services.)
The policy, which was originally touted as a way to reduce welfare costs, has backfired in many states. That’s why the supporting line is now about preventing dollars from going to drug dealers instead of cost savings.
Deseret News reports the latest problems in Utah: “Utah has spent more than $30,000 to screen welfare applicants for drug use since a new law went into effect a year ago, but only 12 people have tested positive, state figures show.”
When Ohio legislators in 2012 proposed a drug testing requirement for welfare benefits, CityBeat reported another failure in Florida originally covered by The Miami Herald: In that state, the program had a net loss of $45,780 after it reimbursed falsely accused welfare recipients for their drug tests. Only 108 people out of the 4,086 accused, or 2.9 percent, tested positive, and most tested positive for marijuana.
Utah and Florida are among eight states that have enacted drug testing requirements for welfare recipients since 2011, according to the National Conference of State Legislatures.
A court placed an injunction on the Florida program after the American Civil Liberties Union sued on September 2011. That injunction was upheld on Feb. 26 by the Eleventh Circuit Court of Appeals in Atlanta, which concluded, “The simple fact of seeking public assistance does not deprive a TANF (welfare) applicant of the same constitutional protection from unreasonable searches that all other citizens enjoy.”
Given that Schaffer’s bill would require drug testing only after information is solicited through questionnaires, it’s unclear whether legal challenges like the one in Florida would be successful in Ohio.
Food deserts are a big problem for many of Hamilton County’s impoverished families, but ongoing research suggests officials may be overlooking mobility when attempting to pinpoint neighborhoods that lack access to healthy foods.
University of Cincinnati professor Michael Widener is heading research that looks into how mobility can alter perceptions about food deserts. So far, his findings have suggested that some people may have access to healthy foods throughout their daily commute despite being classified as living in a food desert.
Widener explains the research is necessary to make identifying food deserts more accurate. “In previous work and when I was doing my dissertation, I was noticing how a lot of food desert research failed to take into account the dynamics of everyday urban life,” he says. The observation led Widener to incorporate those dynamics, particularly people’s movements throughout the day, to see how they impact people’s access to food.
Still, Widener cautions that his findings don’t dismiss the problems caused by food deserts: “Of course, there are a lot of assumptions being made, like are (these commuters) totally drained after work? The biggest (assumption) is of course that (someone has) a car.”
Widener says his findings could impact how public officials approach food desert policies. He points to potential stopgap measures, such as better access to public transportation, that could alleviate the pains of living in a food desert while a more permanent solution is put in place. Widener argues these policies could make financial sense: Considering how many potential costs a food desert can bring on a community, it might be cheaper for a city to build a bus route and encourage better ways to load groceries into buses. Widener knows these aren’t perfect solutions, but he thinks they could provide some aid in a bogged-down political climate that often results in sluggish policy changes.
There is a caveat: Widener acknowledges research has so far been inconsistent as to whether access to healthier food actually leads to healthier results. Eventually, he wants to research what actually causes healthier results and whether broader economic factors, such as poverty, play a more important role. That could give officials a clearer picture on which policies work and which don’t.
The first part of Widener’s research came out in a January paper that looked at auto commuters’ access to food, and the next part will look at public transportation’s impact. The research project is using local transportation data from The Ohio-Kentucky-Indiana Regional Council of Governments.
Food deserts are neighborhoods that lack access to fresh, healthy foods. In Hamilton County, many of the identified food deserts are in neighborhoods on the city’s west side, including Price Hill and Queensgate. Cincinnati’s food deserts are just one problem being addressed by Plan Cincinnati, the city’s first master plan in more than 20 years (“Core Future,” issue of Sept. 5).
Part of the parking plan proposed by City Manager Milton Dohoney Jr. on Feb. 19 (“City Manager Proposes Parking, Economic Development Plan,” issue of Feb. 20) would also build a modern grocery store with access to fresh fruits and vegetables in Downtown.
Former Ohio governor Ted Strickland, who rose to the governorship with the help of the National Rifle Association, says gun rights and gun control can co-exist. The claim is in light of the massacre at Sandy Hook Elementary School in Newtown, Conn., which killed 20 children and six adults. Many have called for stricter gun control in light of the past year’s bouts of gun violence, but Republicans are typically opposed to such proposals. A recent poll from The Washington Post and ABC News found 59 percent of Americans support banning high-capacity ammunition clips, much like the ones used in the Newtown shooting. Another 52 percent back the ban of semi-automatic handguns.
Still, Gov. John Kasich isn’t changing his mind on the Second Amendment. He says he will sign a bill that allows guns in the Ohio Statehouse parking garage. The bill will also change the definition of an unloaded gun, allowing gun owners to carry loaded clips in their vehicles as long as they are in a separate compartment from the gun, and make concealed carry permits from other states easier to validate in Ohio.
Despite denials from city officials, mayoral candidate John Cranley and Councilman Chris Smitherman insist city government is trying to use the transit fund to fund the streetcar. But Mayor Mark Mallory in an op-ed for The Cincinnati Enquirer said it will not happen. Mallory said the dispute dates back to a lawsuit filed by Southwest Ohio Regional Transit Authority (SORTA), which runs the Metro bus system. The lawsuit demands transit funds be solely dedicated to SORTA.
Cincinnati’s U.S. Rep. Steve Chabot has vowed to continue trying to kill the streetcar. Even though voters have approved of the streetcar twice, Chabot, who also represents Warren County in district boundaries that were redrawn by Republicans, says he would rather focus federal funding on other projects, like the Brent Spence Bridge.
A conservative northern Kentucky lawmaker is supporting a bill that expands prisoners’ rights to DNA testing. The bill would allow a Cincinnati man to push for DNA testing that he claims will exonerate him of a 1987 rape and murder in Newport. Ky. Sen. John Schickel argued, “If DNA testing is good enough to send you to prison it should be good enough to get you out of prison.”
Cincinnati-based Fifth Third Bank bought another $100 million in stock from Credit Suisse International. The deal is part of a larger program to buy back 100 million shares.
Cincinnati State is in line to obtain $123,000 from the state government. The funding could create 51 new or expanded co-op jobs.
The United Way of Greater Cincinnati announced $50.7 million in investments for 2013, a slight increase from 2012. The increase will help boost funding to prepare children for kindergarten by 5 percent. It will also fund 288 programs at 146 agencies, with seven becoming new United Way agency partners.
The Prince Hall Shriners, which describes itself as “the world’s oldest African-American fraternal organization,” is returning to Cincinnati in 2015. The convention was in Cincinnati in 2011.
Duke Energy’s local management is being shaken up. Jim Henning will take over as president for Duke Energy Ohio and Kentucky.
Ohio Board of Regents Chancellor Jim Petro is retiring.
Did you know our solar system is sort of like a phoenix? It apparently rose from the cumulative ashes of countless stars, not one supernova.
A nonpartisan think tank that advocates for poor and working class families is urging that Ohio adopt its own version of the federal Earned Income Tax Credit (EITC).
The group, Policy Matters Ohio, said a state version of the federal tax credit, set at 10 percent, would divert just $210 million from Ohio’s coffers but would benefit 949,000 low-income working families across the state. Such a credit would provide families with an average of $221 each, which Policy Matters Ohio described as “modest but helpful.”
Currently 24 states and the District of Columbia have Earned Income Tax Credits, ranging from 3.5 percent to 50 percent of the federal credit.
“A state EITC program enables families to work and build assets while reducing the impact of regressive income tax changes,” said a statement released by Policy Matters Ohio.
“A state EITC makes sense because recent changes to the personal income tax have provided greater tax reductions for higher-income earners than they have for lower- and middle-income families,” the statement continued.
The federal EITC is a refundable tax credit for low- and medium-income individuals and couples, and is considered the nation’s largest poverty relief program. When the credit exceeds the amount of taxes owed, it results in a tax refund to those who qualify and claim the credit.
To qualify for the EITC, a recipient must have earned income of $49,000 or less. The credit is worth significantly more for families with children and is refundable, which means families receive cash refunds above their tax liability.
Created in 1975, the federal EITC is aimed at helping lift families with children about the poverty level, along with offsetting the burden of Social Security taxes and maintaining an incentive for people to work.
In Ohio, 949,692 people currently claim the federal EITC. The credit generates $2.1 billion for state residents, and the average refund is $2,211.
Founded in 2000, Policy Matters Ohio is a nonprofit, nonpartisan policy research organization that seeks to create “a more prosperous, equitable, sustainable and inclusive Ohio,” through research and policy advocacy.
Based in Cleveland and Columbus, the organization is funded primarily through grants from groups like the Ford Foundation, the Sisters of Charity Foundation, the Center on Budget and Policy Priorities, the Corp. for Enterprise Development and others.
President Barack Obama won over Mitt Romney in what can only be called an electoral college landslide. He won every single “battleground state” on CNN’s electoral map with the current exception of Florida, although the current lead and remaining demographics to be counted will likely tilt Florida to Obama. Despite the insistence of conservatives and mainstream media pundits, models like FiveThirtyEight that predicted a big Obama win were entirely accurate.
In the U.S. Senate race, Democratic incumbent Sherrod Brown also handily won over Republican challenger Josh Mandel. CityBeat covered the policy and campaign differences between the two candidates in coverage of the first, second and third debate and a cover story.
For the First U.S. Congressional District, Republican incumbent Steve Chabot beat Democratic challenger Jeff Sinnard.
The big takeaway from election night at a federal level: Billions of dollars spent on campaigns later, the U.S. House of Representatives remains in Republican hands, the U.S. Senate remains in Democratic hands and the White House remains in Democratic hands. In other words, billions of dollars were spent to change almost nothing.
At the state level, Issue 1, which called for a constitutional convention, lost. But Issue 2, which was an attempt at redistricting reform, lost as well. CityBeat covered the rise and details of Issue 2 in a story and commentary.
In the state’s legislature races, incumbents swept. Republican Bill Seitz beat Democrat Richard Luken for the eighth district of the Ohio Senate. Republican Peter Stautberg beat Democrat Nathan Wissman for the 27th district of the Ohio House. Democrat Connie Pillich beat Republican Mike Wilson for the 28th district of the Ohio House. Republican Louis Blessing beat Democrat Hubert Brown for the 29th district of the Ohio House. Republican Lou Terhar beat Democrat Steven Newsome for the 30th district of the Ohio House. Democrat Denise Driehaus beat Republican Michael Gabbard for the 31st district of the Ohio House. Democrat Dale Mallory beat Republican Ron Mosby for the 32nd district of the Ohio House. Democrat Alicia Reece beat Republican Tom Bryan for the 33rd district of the Ohio House.
For the Ohio Supreme Court, Republican Terrence O’Donnell kept his seat against Mike Skindell. But Democrat William O’Neill beat Republican incumbent Robert Cupp, and Republican Sharon Kennedy beat Democratic incumbent Yvette Brown.
At the local level, Issue 4, which gives City Council four-year terms, was approved. Issue 42, which renewed a tax levy for Cincinnati Public Schools, passed. Issue 50, a tax levy for senior health services, was approved. Issue 51, a tax levy for mental health services, was approved.
In Hamilton County offices, things got a bit more blue overall. Republican incumbent Joe Deters beat Democrat Janaya Trotter for the prosecutor attorney’s office. Democrat Pam Thomas beat Republican incumbent Tracy Winkler for the office of the clerk of the court of common pleas. Democrat Jim Neil beat Republican Sean Donovan for the sheriff's office. Democratic incumbent Wayne Coates beat Republican Wayne Lippert for the county recorder's office. Republican incumbent Robert Goering barely beat Democrat Jeff Cramerding for the county treasurer's office. Democratic incumbent Lakshmi Sammarco beat Republican Pete Kambelos for the county coroner's office.
In the lower courts, Republican incumbent Pat Fischer beat Democrat Martha Good and Republican Pat DeWine beat Democrat Bruce Whitman for the First District Court of Appeals. Democratic incumbent Nadine Allen and Republican Leslie Ghiz beat Democrat Stephen Black and Republican Heather Russel for the court of common pleas.
In other states, gay marriage and marijuana were legalized. Minnesota voted against a same-sex marriage ban. Tammy Baldwin of Wisconsin also became the first openly gay candidate to win election for the U.S. Senate. Overall, the night was a big win for progressives all around the country.
The Cincinnati Enquirer did not have a smooth Election Day. The Enquirer mistakenly published false early voting results, and the fake results were picked up by a conservative news reporting website. Providing voting results before polls close is typically frowned upon in media circles to avoid discouraging voters with potentially disappointing numbers.
Ohio could be short on physicians in the future. By 2020, the state might need to fill a gap of just more than 5,000 physicians, according to Dayton Daily News.
In September, U.S. employers posted the fewest job openings in five months, according to U.S. Department of Labor. On the bright side, layoffs dropped as well.
Cincinnati-based Macy’s beat third quarter estimates and reported strong earnings.
CyrusOne, a Cincinnati Bell subsidiary, bought a downtown building for $18 million. The purchase is part of CyrusOne’s proposed spin-off from Cincinnati Bell.
Cincinnati-based Kroger is looking good for investors. One money management firm told clients Kroger stock is “an exceptional value.”
U.S. hospitals are on track for 124 mass layoffs in 2012, which could cost 8,700 jobs by the end of the year. However, jobs numbers are still up overall in hospitals.
The three measures set up $15 million to front to Duke Energy to move utility lines out of the proposed path; changes the source of funding to repay some $25 million in bonds used to pay for the streetcar; sells $14 million in bonds for streetcar improvements; and changes the municipal code to clarify that it is the responsibility of a utility to relocate its structures.
The $15 million comes from the $37 million sale of city-owned land near the former Blue Ash Airport.
Council voted 6-3 to approve the front money, improvement bonds and bond repayment, a vote that largely mirrored a Monday Budget and Finance Committee vote. Councilman Chris Smitherman was the sole “no” vote on the ordinance to change the municipal code.
Councilmembers Cecil Thomas, Wendell Young, Roxanne Qualls, Laure Quinlivan, Chris Seelbach and Yvette Simpson voted to pass funding, while Councilmembers Smitherman, P.G. Sittenfeld and Charles Winburn voted against.
“My concern with all of these votes … in particular the Blue Ash Airport dollars, these were promises that you made to the neighborhoods and I don’t have the confidence that the legal battle against Duke Energy is going to yield a 100 percent win for the city of Cincinnati, so there’s no assurance that these dollars are going to come back,” said Councilman Chris Smitherman, one of the most vocal opponents of the streetcar.
“I want to be clear that it’s something that I don’t support.”
The $15 million would be fronted to Duke to move its lines while the city and utility work out who is responsible for funding the move.
Duke estimates the full cost at $18 million and argues
that the lines would not have to be moved if the streetcar wasn’t being
built. The city maintains that it has always been the responsibility of
utilities to move or upgrade their structures — which the third measure
clarified in the municipal code. If the city loses a legal battle against Duke, it will not
recoup the $15 million.
The second proposal switches the source of funding for
streetcar bonds from money coming into city coffers from southern
downtown and the riverfront area to a 1995 fund set up to collect
service payments from the Westin/Star, Hyatt and Saks. The measure wouldn't use any additional new money for the streetcar.
That downtown area wasn’t bringing in as much cash as
expected but the city hopes to repay the other fund once the downtown
district — which includes the Banks and the casino — rebounds.