As we approach the end of the year, I thought it would be a good idea to look back at some of the data we have and see how Ohio’s economy changed over the past year. Below are five stories that matter about Ohio’s economy in 2023.
Lower inflation might be helping income levels recover
According to the most recent American Community Survey, real median household income in Ohio went up by about $1,000 between 2021 and 2022, roughly a 2% increase. During this time, we had generational inflation that suppressed real wage growth despite the fact that nominal household income increased by over 8%.
In recent months, we’ve seen inflation rates start to fall back down to more manageable levels. Looking forward to 2024, hopefully this means that we might see even more real income growth.
Both unemployment and underemployment fell
Over the course of the last year, unemployment fell from about 4% to 3% and underemployment fell from about 8% to 6% in the state of Ohio. As the economy continues to recover from the COVID-19 pandemic, it is a good sign to see our main employment indicators continue to improve.
Additionally, seeing underemployment fall at roughly the same rate as unemployment is a good sign that the jobs people are getting are higher quality. There is still a lot of work to be done to fully recover from the pandemic, but these signs are good indicators that employment quality is improving.
CO2 emissions are creeping back up
One trend that came out of the pandemic was a significant short-term decrease in CO2 emissions. Overall, statewide emissions have been decreasing at a pretty steady rate since about 2008.
Our most recent emissions data shows a slight uptick in the amount of CO2 emissions. It’s too early to tell whether this is an inflection point or just some noise in an otherwise stable downward trend, but it’s an important trend to keep our eyes on in 2024.
Health insurance coverage is increasing
According to the most recent American Community Survey data, the number of Ohioans that do not have health insurance fell by about 70,000 people from 2021 to 2022. This is extremely important in the wake of the pandemic, where we saw the importance of a strong public health infrastructure.
Our recent report on human development in Ohio found that because of the pandemic, Ohio’s life expectancy declined. Seeing more people have access to health insurance means it will be easier for people to pay for health care.
Poverty is stagnant
Poverty in Ohio according to the Official Poverty Measure has largely remained the same after a small decrease in 2021. This is despite the fact that unemployment has been decreasing. For a fairly comprehensive look at poverty statistics in Franklin County, Ohio, check out our recently published Poverty Snapshot.
At Scioto Analysis, we are currently working on updating our Ohio Poverty Measure, which we last published in 2021. This will give us a better understanding of how Ohioans are experiencing poverty, taking into account this specific regional context. This measure also includes the impact of public benefits, something the official poverty measure does not capture.