Hospitality industry leads massive job losses

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COLUMBUS – Ohio’s unemployment rate declined in January but the latest data from the state shows the staggering loss of jobs over the past year due to the COVID-19 pandemic, now in its second year.

The unemployment rate of 5.3% was down from a revised 5.6% in December as employers added 28,900 jobs, increasing the number of Ohioans who were working to 5.3 million, the state Department of Job and Family Services reported Friday.

The state has lost 307,000 jobs in the 12 months since January 2020, two-thirds of those in the service sector where more than 93,000 jobs disappeared from the hospitality and leisure industry, thanks to the shutdown of restaurants and bars, stay-at-home orders and limits on gatherings to prevent the spread of the coronavirus.

The National Restaurant Association reported than industry revenue in January was down 16% from the year before.

The number of unemployed workers fell by 14,000 since December, though some of that may be due to unemployment benefits expiring or workers leaving the job market.

There were 128,161 initial claims for jobless benefits reported during the week that ended March 6 but the state reports that at least 19,000 have been flagged for potential fraud.

Governor Mike DeWine and Lt. Governor Jon Husted sent a letter to President Joe Biden Thursday urging the development of a national, coordinated response to ongoing, widespread fraud attempts through the unemployment system nationwide, specifically targeting recipients of the Pandemic Unemployment Assistance program, a federally funded program to provide payments to those workers who do not traditionally qualify for unemployment benefits.

The number of initial jobless claims was 6.4% higher than the previous week though the number of continuing claims, considered a more accurate measure of economic health, was down by 0.03% to 318,375.