1 In 5 Working Ohioans Have Filed For Unemployment Since March

COLUMBUS, OH — Nearly one out of five working Ohioans have filed for unemployment in the past nine weeks, according to federal statistics released Friday.

Ohio has a workforce of approximately 5.6 million people, and more than 1.2 million Ohioans have filed for unemployment over the past two months, according to the U.S. Bureau of Labor Statistics and JobsOhio. The unemployment rate for Ohio in April was 16.8 percent, the highest ever recorded in the state.

Every sector of economic activity shed jobs in April, including private industry, nonprofits and government positions. An additional 161,000 Ohio workers have filed for unemployment through the federal CARES Act program because they are ineligible for typical state-supported unemployment.

Don't miss the latest updates from health and government officials in Ohio on the coronavirus. Sign up for Patch newsletters and news alerts.

Gov. Mike DeWine said he would not tap into the state's $2.7 billion rainy day fund to address budget shortages but would instead make steep cuts to Ohio's Medicaid and public school funds. The governor said he plans to cut $775 million from the state budget before July 1.

DeWine said he wanted to make painful cuts now rather than in the future, but he asked all department directors to find budget cuts for 2020, 2021 and beyond. "The more prudent, the more conservative action was to make these cuts now," the governor said. He added that state officials may need the rainy day fund in coming years.

More reading: Layoffs: Ohio Companies Planning Cuts, Many Cite COVID-19

The governor's decision not to tap the rainy day fund drew the ire of some politicians and nonprofits, such as the research policy firm Policy Matters Ohio.

“More than a fifth of Ohio’s working people lost their jobs in the coronavirus shutdown,” said Policy Matters Ohio researcher Michael Shields on Friday. “Policymakers must tap state resources to sustain those out of work, and strengthen consumer confidence as businesses reopen.”

As unemployment continues to climb in Ohio and nationally, Shields made the following recommendations to address the growing joblessness:

• Companies should implement work-sharing policies to avoid layoffs. Rather than lay off 10 workers, reduce 50 workers' schedules to four days a week. Then help employees get unemployment for their lost hours. The federal government, through the CARES Act, is covering unemployment benefits for employees impacted by work-sharing plans.
• Federal lawmakers should prioritize additional stimulus packages. With nearly every state in the U.S. facing budget shortfalls, the federal government should offer additional support to individuals and local governments.

Ohio House Democrats have called on DeWine and Republican lawmakers to expand paid and family sick leave guarantees, extend workers' compensation to front-line workers and do more to support small businesses.

The governor has said Ohio could face multiple years of economic stagnation and contraction due to the COVID-19 virus and that the rainy day fund should be used only as a last resort.

The federal government began tracking unemployment rates in 1976. Ohio's previous highest unemployment rate was 14 percent, recorded in 1982, according to the Federal Reserve Bank of St. Louis.