Although the first quarter of this year was significantly better than the final quarter of 2020, the local economy needs sustained expansion to recoup many of the jobs that were wiped out during the massive layoffs early in the outbreak.
There have been some positive economic indicators and trends, but a couple of obstacles stand in the way of the economy fully reopening, said Holly Allen, director of marketing and communications with the Dayton Area Chamber of Commerce.
One is getting vaccines to everyone who wants them, she said, and another is finding workers to fill all the available job openings.
“We continue to work toward stabilizing the industries that were hit hardest by the pandemic, including the hospitality industry,” Allen said, later adding, “Extended federal unemployment benefits are making it more financially beneficial for some to stay home.”
Employment in the Dayton metro area increased 0.3% in March to 373,500 workers, according to preliminary data from the U.S. Bureau of Labor Statistics.
The local economy created 1,200 jobs, after losing 500 in February. Employers hired 2,400 new workers in January.
The metro area includes Montgomery, Miami and Greene counties.
The local economy ended 2020 on a down note, losing 2,200 jobs in December. The region also saw modest growth in November (+600 jobs) after shedding 400 workers in October.
The Dayton region is still digging itself out of a deep jobs hole, caused by the coronavirus crisis.
Job figures revised earlier this year show that the region lost 59,000 jobs in April 2020 following the statewide lockdown orders.
Since then, the region has gained back about 40,500 of those jobs (about 69%), according to federal labor data.
But Allen, with the chamber, points out that there are some encouraging signs of growth, such as regional sales tax collections increasing 2.2% in January, compared to the prior year.
She also said regional unemployment has declined, and major redevelopment projects have continued to move forward, like the revitalization of the Dayton Arcade and the Fire Blocks District.
The U.S. has seen some surprisingly positive economic indicators recently, such as a decline in new jobless claims, said Mark Hamrick, a senior economic analyst with Bankrate.
But, he cautioned, the economy still requires substantial healing.
New jobless claims declined in all seven local counties last week, according to the Ohio Department of Job and Family Services.
New unemployment claims in Butler, Champaign, Clark, Greene, Miami, Montgomery and Warren counties were down 16% in the week ending April 17, compared to the previous week.
Some employers have said they have had trouble filling positions. El Meson in Dayton, a restaurant serving Central and South American dishes, has had to cut back hours of operation.
“We’re only open four days right now and we really can’t see us opening anymore until we feel safe and confident that we have the amount of staff to man the tables,” owner Bill Castro said.
The restaurant is normally open Monday through Saturday for lunch and dinner. But its lunch crowd dwindled due to people working from home, leaving Castro no choice but to cut lunch hours and only serve dinner between 4 and 9 p.m. However, the restaurant has a steady flow of customers.
Dana Downs, chef and owner of Roost Modern Italian in the Oregon District, said it has been harder to find qualified workers, especially dishwashers, right now than ever before.
“It’s very difficult right now,” she said. “People don’t want the stress and they don’t want to get slammed ... it’s definitely tough to hire.”
The state of Ohio’s economic recovery from the pandemic has slowed almost every month since it began, said Michael Shields, with liberal-leaning Policy Matters Ohio.
“The situation is similar for Dayton area, but a little more challenging still, because the region has posted losses in several months,” he said. “Ohio first lost jobs in February.”
The fiscal stimulus bills passed last year definitely sped up recovery and prevented a drawn out recovery, similar to the one after the Great Recession, he said.
The American Rescue Plan should help and jobs could return more rapidly if there is robust and sustained stimulus, he said.
India Duke contributed to this story.
About the Author
