Economy of Ohio facts for kids

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Economy of Ohio
Sullivan Views the Earth - GPN-2000-001082.jpg
Dr. Kathryn Dwyer Sullivan, a resident of Columbus, was the first American woman to walk in space. She is the former President and CEO of the Center of Science and Industry in Columbus, and currently serves as the Director at the Battelle Center of Mathematics and Science Education Policy in Columbus, while sitting on the National Science Board. Science has had an enormous impact on Ohio's economy historically.
Statistics
GDP $526billion
GDP per capita
$53,046
Population below poverty line
15.4%
0.4594
Labor force
5,883,960
Unemployment 5.7%
Public finances
Revenues $27.3 billion
Expenses $31 billion

The economy of Ohio nominally would be the 27th largest global economy behind Saudi Arabia and ahead of Argentina according to the 2015 IMF report. The state had a projected GDP of $526.1 billion in 2013, up from 517.1 in 2012, and up from 501.3 in 2011, according to the Bureau of Economic Analysis. In 2013, Ohio was ranked in the top ten states for best business climate by Site Selection magazine, based on a business-activity database. The state was edged out only by Texas and Nebraska for the 2013 Governor's Cup award from the magazine, based on business growth and economic development. A new report by the Quantitative Economics and Statistics Practices (QUEST) of Ernst & Young in conjunction with the Council On State Taxation (COST), ranks Ohio as third in the nation for friendliest tax environment. The study, "Competitiveness of state and local business taxes on new investment," provides a state-by-state comparison of tax liabilities. The top five states ranked with the lowest effective tax rate on new investment are: (1) Maine (3.0%); (2) Oregon (3.8%); (3) Ohio (4.4%); (4) Wisconsin (4.5%); and (5) Illinois (4.6%).

Ohio is commonly noted as the Nation's Industrial Capital, dating to its roots in the Rust Belt and Ohio's present-day intelligence and scientific dominance. Ohio was one of four states in the U.S. to have areas make the Intelligent Community Forum's list of global Smart 21 Communities for 2014, with Columbus, Ohio receiving the honors. The state has 5 of the top 115 colleges in the nation, according to U.S. News and World Report's 2010 rankings, while the Ohio State University was ranked #10 by the same magazine for awarding degrees to Fortune 500 CEOs. The state was ranked #8 by the same magazine in 2008 for best high schools, while overall, in 2010 the state's schools were ranked #5 in the country by Education Week. However, by 2016 the state's high school rankings had slipped to #11 according to U.S. News and World Report, and #22 overall in quality by Education Week in 2017. It was second only to Texas in having the most U.S. cities in the top 30 best places for new college graduates, according to BusinessWeek in 2010. The year ending July 2011 saw the state ranked fourth in the nation in job creation behind Texas, California, and New York. By 2016 the state wasn't in the top 10 for job growth, and between 2015-2016, the state saw a decrease in job creation of 38,800. Since February 2010 state was 2.5% below the national average.

Ohio is considered a center of science and industry, with museums dedicated to such in Columbus, COSI, the Great Lakes Science Center in Cleveland, the Imagination Station in Toledo, and the Boonshoft Museum of Discovery in Dayton. The state includes many historically strong industries, such as banking and insurance, which accounts for 8% of the gross state product, motor vehicle manufacturing, research and development, and steel production, accounting for 14-17% of the nation's raw output. More traditional industries include agriculture, employing one out of seven Ohioans, and new and developing sectors include bioscience, green, information, and food processing industries. Ohio is the biggest manufacturer of plastics and rubber in the country, has the largest bioscience sector in the Midwest, and ranked fourth in the country for green economic growth through 2007.

The state is recognized internationally as the "Fuel Cell Corridor", while Toledo is recognized as a national solar center, Cleveland a regenerative medicine research hub, Dayton an aerospace and defense hub, Akron the rubber capital of the world, Columbus a technological research and development hub, and Cincinnati a mercantile hub.

Wal-Mart is the largest private sector employer in Ohio with approximately 49,700 employees as of April 2014. The largest Ohio employer with headquarters in Ohio is the Cleveland Clinic, with approximately 41,400 employees and headquarters in Cleveland. The largest employer at a single location in Ohio is Wright Patterson Air Force Base in Dayton. 70% of the nation's electrometallurgical ferroalloy manufacturing employees are located in Ohio.

Overview

Cincinnati-kroger-building
Kroger, a supermarket company based in Cincinnati, is the largest employer of those companies headquartered in the state.
Ohio quarter, reverse side, 2002
Ohio's state quarter lays claim to the "Birthplace of Aviation Pioneers," in which Ohio's aerospace and defense industry is still economically strong.

The economy of Ohio nominally would be the 25th largest global economy behind Sweden and ahead of Nigeria according to the 2013 World Bank projections, and the 24th largest global economy behind Sweden and ahead of Norway according to the 2013 International Monetary Fund projections. The state had a projected GDP of $526.1 billion in 2013, up from 517.1 in 2012, and up from 501.3 in 2011, according to the Bureau of Economic Analysis.

A new report by the Quantitative Economics and Statistics Practices (QUEST) of Ernst & Young in conjunction with the Council On State Taxation (COST), ranks Ohio as third in the nation for friendliest tax environment. The study, "Competitiveness of state and local business taxes on new investment," provides a state-by-state comparison of tax liabilities. The top five states ranked with the lowest effective tax rate on new investment are: (1) Maine (3.0%); (2) Oregon (3.8%); (3) Ohio (4.4%); (4) Wisconsin (4.5%); and (5) Illinois (4.6%). In 2013, Ohio was ranked in the top ten states for best business climate by Site Selection magazine, based on a business-activity database. The state was edged out by Texas and Nebraska for the 2013 Governor's Cup award from the magazine, based on business growth and economic development. Ohio was ranked #11 by the council for best friendly-policy states according to their Small Business Survival Index 2009. The Directorship's Boardroom Guide ranked the state #13 overall for best business climate, including #7 for best litigation climate. Forbes ranked the state #8 for best regulatory environment in 2009. Ohio has 5 of the top 115 colleges in the nation, according to U.S. News and World Report's 2010 rankings, and was ranked #8 by the same magazine in 2008 for best high schools. Overall, the state's schools were ranked #5 in the country in 2010. However, by 2016 the state's high school rankings had slipped to #11 according to U.S. News and World Report, and #22 overall in quality by Education Week in 2017. The year ending July 2011 saw the state ranked fourth in the nation in job creation behind Texas, California, and New York. By 2016 the state wasn't in the top 10 for job growth, and between 2015-2016, the state saw a decrease in job creation of 38,800. Since February 2010 state was 2.5% below the national average.

Ohio's private sector is composed of 921,000 employers, which hire around 50.4% of Ohio's non-farm private workforce. Ohio has a developing technology sector and is home to over 28,000 employers that employ nearly 820,000 people; its rate of technology operations is 14% higher than the US average. Between 2006 and 2014, Ohio's employment is expected to grow by 290,700 jobs, or approximately 5.0%. Personal income grew an average of 3.1% in 2008. About 659,900 people are employed in Ohio's manufacturing sector. Major manufacturing employers include AK Steel, Timken, and Honda. In 2007, foreign-based companies employed 229,500 Ohioans, led by Japan, United Kingdom, Germany, France, and Switzerland.

Ohio's exports constituted 3.2% of total U.S. exports in 2009, with top destinations being Canada at $14.2 billion, followed by Mexico, China, United Kingdom, Greece, Brazil, Japan, Germany, France, and Australia. In 2009 the state was the nation's 7th largest exporter with $34.1 billion. 13, 092 companies exported in 2009, with transportation equipment accounting for $9.9 billion, machinery $4.9 billion, chemicals $4.4 billion, and computer and electronics products $2.4 billion.

As of 2010, Ohio was #6 in the country for Fortune 500 companies with 23. They include Cardinal Health at #17, Procter & Gamble at #22, Kroger at #23, Macy's at #103, Nationwide Insurance at #118, Goodyear Tire and Rubber at #141, Progressive Insurance at #161, American Electric Power at #172, Eaton Corporation at #194, and Owens Corning at #432.

Personal income

Ohio had an estimated $505 billion in total personal income in 2015. The average income for the top 5% in the state was $174,026 in 2008. Over two decades, the bottom 20% average income bracket increased 11.6% to $18,337, while the middle 20% increased by 8.9% to $49,051.

According to the Bureau of Labor Statistics in 2008, the average annual salary for Ohioans was $39,820. The highest paid professionals in the state were concentrated in the medical fields. Anesthesiologists, with average annual income of $211,060, were the highest paid, followed by oral and maxillofacial surgeons at $206,670, surgeons at $206,570, orthodontists at $200,770, obstetricians and gynecologists at $186,740, physicians at $170,730, and dentists at $165,400. Average annual income for other selected professionals include airline pilots at $121,330, computer and information research scientists at $99,730, physicists at $98,150, chief executives at $159,730, financial managers at $109,740, aerospace engineers at $94,530, biomedical engineers at $72,150, art directors at $83,110, police officers at $49,890, chefs at $43,230, housekeepers at $19,450, construction laborers at $37,600, steel workers at $50,690, and elevator repairmen at $70,270

The state of Ohio's residents have an overall $35,511 per capita personal income as of 2009, up from $33,338 in 2006.

Incomes vary by county. The median family income in Cuyahoga County is $54,506, where the Cleveland Clinic is the single largest employer. Cleveland also has emerging biotechnology and financial concentrations. It is also worthwhile to note that while some cities in Ohio have declining populations, the overall growth in per capita income in Ohio increased by 4.6% from 2005 to 2006.

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