A report on the state of labor in Ohio shows the pay gap between the highest and lowest workers continues to widen, and union representation is falling. Those are just two findings in a progressive-leaning think tank's 2025 State of Working Ohio report
Heather Smith, working wages researcher for Policy Matters Ohio, said working people are struggling. She said the lowest-paid workers in 2024 taking a 24-cent pay cut, when adjusted for inflation. And Smith said the signs are not good for the near future.
“Job growth is pretty sluggish. The unemployment rate is rising. And these are very early signals that the state of working in Ohio might get harder for a lot of people," said Smith in an interview.
Ohio's jobless rate has been steadily climbing in the last two years, from July 2023's 3.3%—the lowest rate since June 2001—to 5.0% in July 2025.
Smith said while the median hourly wage went up by 36 cents to $24.84, the gap between the highest and lowest paid Ohioans widened by 5.5%.
“We are seeing the beginnings of a widening in income inequality," Smith said. "While one year’s data point can’t determine a trend, this is something that we want to keep an eye on.”
The report showed the lowest-paid Ohioans took a 24-cent-an-hour pay cut. Smith blamed the gap in income inequality on public policies that have been adopted over the past decades.
The report also showed union membership, at 12.1% last year, is just slightly higher than the record low of 11.9% in 2019. But in 2024 it fell 0.2 percentage points, driven by a 2.6% decrease in public sector union representation. The union wage premium increased last year, with union-represented workers earning 12.8% more than non-union workers. Union membership in Ohio peaked in 1989 at 21.3%.
Report makes a 25-year comparison
Policy Matters Ohio began producing its annual State of Working Ohio report 25 years ago. And since 1999, the report said workers have lost ground. Ohio workers were 42.5% more productive in 2024 than in 1999, but employers have raised their wages at the median by just 18.9% over that period.
“For decades, federal and state policymakers have prioritized ‘business-friendly’ policies and trickle-down tax codes, benefiting the wealthiest among us," Smith said.
A conservative think tank sees things differently. The Buckeye Institute praised the 2.75% flat income tax in the state budget signed last month, as well as energy policy changes and moves to attract manufacturers back to Ohio. The research group suggested training programs can help workers earn higher wages, which they say will "also yield more tax revenue, boost savings and investment, and will ultimately improve schools and communities."
"Ohio workers and families have much to celebrate. Despite the state and national unemployment rate climbing, the state’s economy continues to rise and overcome broader challenges by embracing new technologies and attracting new and growing firms," wrote Buckeye Institute vice president of policy Rea Hederman Jr. "More work remains to be done, but Ohio is still at the heart of it all."
