Cleveland’s Economy Grows, Yet Struggles to Attract New Residents
The Cleveland metropolitan area showcases significant economic advancement, yet it falters in attracting new residents. Despite having the lowest unemployment rate in Ohio, the region faces a challenge with numerous job vacancies. Baiju Shah, the president and CEO of the Greater Cleveland Partnership, emphasizes the need for more people to fill existing jobs.
Cleveland’s Economic Landscape
According to the latest report from the Greater Cleveland Partnership, the metropolitan area scored well in two of three core economic indicators compared to ten peer cities, including Rochester and Louisville. The Midwest Growth Rankings illustrate that while businesses and income are growing, job growth remains stagnant.
Key Economic Indicators
- Unemployment Rate: 3.4% in the Cleveland metro area (December data).
- Peer Comparisons: Lower than Cincinnati (3.6%), Columbus (3.6%), Dayton (4.1%), and others.
- Business Growth: Ranked fourth with a 2% increase in GDP from 2023 to 2024.
- Income Growth: Per capita income rose by 4.7% to $70,558, ranking third overall.
- Job Growth: Slight 0.4% increase in non-farm employment, totaling 1.1 million jobs.
Cleveland’s economic report reflects a mixed bag of progress. While the region’s unemployment rate has improved, it still trailed behind cities like Indianapolis, which recorded a job growth rate of 2.3%.
Attracting Young Talent
Shah asserts that attracting young professionals and mid-career individuals is pivotal for the region’s future. The Cleveland Talent Alliance is spearheading efforts to enhance retention rates of local college graduates. In 2024, the retention rate increased to 51% from 47% since tracking began in 2020, with aspirations to reach 55%.
Job Opportunities in Key Sectors
Industry segments showing the most promise for growth include:
- Health
- Business and Finance
- Construction
- Logistics
The demand for skilled workers continues to rise, illustrated by 36,000 job openings within a 50-mile radius. This job surplus underlines the importance of addressing the talent gap to sustain economic vitality.
Future Aspirations
While Cleveland has made strides in business and income growth, the goal remains to rank among the top of its peers in all economic indicators. Shah emphasizes a collective commitment to fostering a robust business climate and promoting the region as an ideal place to work and live.
