Northeast Ohio Economy Following National Trends

8/9/2010 4

Team NEO released second quarter regional economic indicators today in its quarterly Cleveland Plus Economic Review. The report shows that Northeast Ohio (the Plus region) is showing signs of economic improvement as the 16-county regional economy closely tracks the U.S. and experiences employment gains in Services and Manufacturing.

Specifically, the report shows that in the second quarter of 2010, the 16-county regional economy showed some signs of improvement, with declines in the unemployment rate, increases in total employment by more than 55,000 jobs, and a decline in both new and continuing unemployment claims.  The Gross Regional Product is projected to grow by 3.1% in 2010.

Moreover, while in previous recessions, declines in economic activity in the U.S. have often been met with much more severe declines in the Plus region, through 11 quarters of the current recession, the Plus region continues to track within 3% of U.S. Gross Product and 1% of the U.S. change in employment. 

Since January 2010, Northeast Ohio has seen employment growth in its two largest sectors.  Manufacturing employment grew by approximately 8,000 jobs between January and June of 2010, while service sector employment grew by nearly 48,000 jobs. 


Supporting statistics include:

  • NEO Employment Increases in Q2
  • Q2 2010 saw a year over year increase of 1,000 jobs, the first year-over-year employment improvement in the last three years.  Q2 employment was up 3% (55,000 jobs) from Q1 2010, a strong seasonal increase.
  • Unemployment Rate Follows National Trend
  • Northeast Ohio unemployment rate of 10.2% is between U.S. at 9.5% and the State of Ohio at 10.4% and mirroring trend lines
  • NEO rate of 10.2% in Q2 2010 is 1.4% lower than Q1 2010 (11.6%)
  • Manufacturing and Services Jobs Grow
  • Since the beginning of 2010, Manufacturing employment has increased by 1% (8,000 jobs) and Services employment has increased by 3.4% (48,000 jobs) 
  • Construction jobs increased by 8% in the second quarter, per seasonal trends
  • Unemployment Claims Similar to Pre-Recession Levels
  • Initial unemployment claims return to pre-recession levels, indicating a slowing of job loss
  • Continued claims are among their lowest point in a year and a half.
  • NEO Gross Regional Product (GRP) Projected to Increase
  • According to Moody’s economy.com, GRP for the region in 2010 is estimated to grow 3.1%.
  • GRP Comparison Recession
  • In comparing the GRP from the 1981 recession to the current recession, Northeast Ohio is performing more like the U.S. as a whole; with 11 quarters into the recession, NEO’s GRP was only 2.8% lower in the 2007 recession, while 7.0% lower than the U.S. in 1981.
  • Manufacturing Hours Worked Normalized
  • Average manufacturing hours worked declined steadily through 2007 and 2008, but have remained fairly flat, with slight increase since mid-2009.
  • Northeast Ohio Occupied Industrial Space
  • NEO industrial vacancy rate and occupied space remains fairly flat, at 8.6% vacancy rate and more than 400 million square feet of space still occupied.


This updated format of the Cleveland Plus Quarterly Economic Review has been enhanced to provide additional indicators to provide a holistic picture of Northeast Ohio’s 16-county economy. The Economic Review is the only regular source of collective economic data for the entire Northeast Ohio region.  Team NEO uses Moody’s economy.com data, U.S. Bureau of Labor Statistics and Ohio’s Labor Marketing Information to aggregate regional figures. The non-profit organization draws on the information to attract new businesses and jobs to the region.  

Team NEO advances Northeast Ohio’s economy by attracting businesses worldwide to the 16-county Cleveland Plus region.  The organization is a joint venture of the region's largest metro chambers of commerce.  Since 2007, the organization has attracted 34 new company expansions or relocations, 3,200 new jobs and $100M in annual payroll to Northeast Ohio, leading to a total annual regional payroll benefit of $260M.


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