Cleveland's economy is on the rise, but there's a catch! Despite the city's impressive progress, attracting and retaining talent remains a significant challenge.
The latest report reveals that Cleveland's unemployment rate is the lowest in Ohio and better than most similar-sized urban areas in the region. However, this success also highlights an untapped potential, according to the region's chamber of commerce head.
Baiju Shah, president and CEO of the Greater Cleveland Partnership, emphasizes that while businesses are thriving and income is growing, the city faces a shortage of workers to fill the available positions.
"We need more people to support the jobs we have," Shah explains. The focus is on attracting young professionals and mid-career individuals to the community, with the health, business and finance, construction, and logistics sectors offering the most promising opportunities.
The Cleveland Talent Alliance, a consortium of public, private, and nonprofit organizations, is leading the charge to address this issue. Their recent report shows a retention rate of 51% for college graduates in the region, an improvement from 47% in 2020. The goal is to reach 55%, and Shah believes it's achievable.
"The evidence is clear," Shah says, pointing to the 36,000 job openings within a 50-mile radius listed on the Ohio Means Jobs website. Additionally, Cleveland's consistently lower unemployment rate compared to other regional metros is a promising indicator.
According to the Bureau of Labor Statistics, Cleveland's unemployment rate for December stood at 3.4%, lower than Cincinnati and Columbus (3.6%), Dayton (4.1%), Akron (4.3%), and Toledo (4.6%). Among Cleveland's peer cities, unemployment rates are lower in Indianapolis, Louisville, Milwaukee, and Rochester, and higher in Buffalo, Cincinnati, Columbus, Detroit, Pittsburgh, and St. Louis.
The report, which used data up to 2024, ranks Cleveland fourth for business growth (2%) from 2023 to 2024, third for income growth (4.7% increase to $70,558 per capita), and sixth for jobs growth (0.4% increase to 1.1 million non-farm employees).
Compared to a previous report analyzing 2019-21 data, Cleveland has improved in business growth and income growth rankings but has slipped in job growth.
The Midwest Growth Rankings, introduced in 2022, aim to provide clarity on the region's progress. Shah expresses the aspiration for Cleveland to be among the top-tier performers in its peer group for the decade across all three indicators.
"To get there, we need a strong business environment, a civic system committed to growth and prosperity, and for all of us to become ambassadors for our world-class region," Shah concludes.
So, while Cleveland's economy is improving, the city's ability to attract and retain talent will be crucial to its long-term success. What do you think? Is Cleveland on the right track, or are there other factors at play? Share your thoughts in the comments!
