Avoiding a sizable imbalance between the job supply and demand is probably best, some research groups say. But workers have more leverage to demand higher pay and better work conditions and compensation packages when there are fewer job-seekers than openings.
“You can see that the number of job-seekers per job has been growing over recent months,” said Molly Bryden, sustainability researcher with Policy Matters Ohio. “The consistent increase we’re seeing in 2024 indicates jobs are becoming relatively scarce, and with a more competitive job market, workers can lose some of their bargaining power.”
The numbers
Ohio in June had more than 254,200 unemployed people looking for work and about 260,000 job openings, according to seasonally adjusted survey data from the U.S. Bureau of Labor Statistics.
Complete data for July was not yet available by deadline.
The number of jobless people searching for work in Ohio has increased for seven straight months.
In April, May and June of this year, Ohio had a ratio of 1.0 unemployed persons per job opening, according to the seasonally adjusted data from the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey.
Ohio had a ratio of 0.6 or 0.5 in most months in 2022 and 2023. That meant there were nearly two job openings for every jobless person looking to get hired.
“When the ratio is less than one, jobs are more abundant and workers more scarce, so there’s less competition among job-seekers,” said Bryden, the researcher.
Job-seekers’ bargaining power is strong when there are few job-seekers compared to job openings and when it is easy for workers to switch jobs, says ZipRecruiter Economic Research.
Bryden said the 1.0 ratio is probably good for the long-term. But less demand for labor means workers have reduced bargaining power and less leverage to demand higher wages.
“Considering disproportionately low wages compared to rising productivity and profits, we’d prefer to see a greater abundance of available jobs relative to unemployed job seekers,” Bryden said. “That’s because it gives job-seekers more agency in the job search, helping them to bargain for better wages and terms of work.”
Ohio’s unemployment rate has increased in recent months, but a key reason why that’s happening is that more people are entering the workforce, she said.
But Bryden said Ohio’s job growth has been slowing at the same time that more people are joining the workforce, which means increased competition for jobs.
Ohio’s unemployment rate increased by 0.1 percent in July to 4.5 percent, and the labor force participation rate rose to 62.3%, up from 62.1%, says Rea S. Hederman Jr., vice president of policy at the Buckeye Institute.
He said this suggests the increase is due to more Ohioans looking for work but not being able to find jobs.
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