By: Janet Harrah
The Cincinnati economy needs to create approximately 1,000 jobs per month over the next year to maintain its current unemployment rate. The number of jobs needed to keep the unemployment rate steady is dependent on: (1) the population growth of persons 16 years and over and (2) the rate of labor force participation. In the Cincinnati area, between 2005 and 2010, the population 16 years and over increased on average, 1.2% each year. During this same period, the labor force participation rate (LFPR) has averaged 67.3% (see Table 1). The LFPR represents the proportion of the population 16 years and over that is in the labor force.
If the average 1.2% growth continues, the population 16 years and over will increase by about 19,700 (see Table 2) in 2012. With the labor force participation rate at 67.3% then an additional 13,200 people will join the Cincinnati labor force. To maintain the area’s current 9.1% unemployment rate, 12,000 of those individuals joining the labor force will need a job. In other words, the economy will need to create approximately 1,000 net new jobs each month to maintain the current unemployment rate.
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