Ohio - Economy

Economy

In 2010, Ohio was ranked No. 2 in the country for best business climate by Site Selection magazine, based on a business-activity database. The state has also won three consecutive Governor's Cup awards from the magazine, based on business growth and developments. As of 2010, Ohio's gross domestic product (GDP) was $478 billion. This ranks Ohio's economy as the seventh-largest of all fifty states and the District of Columbia.

The Small Business & Entrepreneurship Council ranked the state No. 10 for best business-friendly tax systems in their Business Tax Index 2009, including a top corporate tax and capital gains rate that were both ranked No. 6 at 1.9%. Ohio was ranked No. 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 No. 13 overall for best business climate, including No. 7 for best litigation climate. Forbes ranked the state No. 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 No. 8 by the same magazine in 2008 for best high schools.

Ohio's unemployment rate stood at 10.7 in May 2010, adding 17,000 new jobs that month. Ohio's per capita income stands at $34,874. Moody's is predicting a 1.3% increase in personal income in 2009 for Ohio, compared to the 2007 rate of 4.7%. As of 2007, Ohio's median household income is $46,645, and 13.1% of the population is below the poverty line, slightly above the national rate of 13%. Ohio's employment base is expected to grow 5% from 2006 to 2016, a net gain of 290,700 jobs.

The manufacturing and financial activities sectors each compose 18.3% of Ohio's GDP, making them Ohio's largest industries by percentage of GDP. Ohio has the largest bioscience sector in the Midwest, and is a national leader in the "green" economy. Ohio is the largest producer in the country of plastics, rubber, fabricated metals, electrical equipment, and appliances. 5,212,000 Ohioans are currently employed by wage or salary.

By employment, Ohio's largest sector is trade/transportation/utilities, which employs 1,010,000 Ohioans, or 19.4% of Ohio's workforce, while the health care and education sector employs 825,000 Ohioans (15.8%). Government employs 787,000 Ohioans (15.1%), manufacturing employs 669,000 Ohioans (12.9%), and professional and technical services employs 638,000 Ohioans (12.2%). Ohio's manufacturing sector is the third-largest of all fifty United States states in terms of gross domestic product. Fifty-nine of the United States' top 1,000 publicly traded companies (by revenue in 2008) are headquartered in Ohio, including Procter & Gamble, Goodyear Tire & Rubber, AK Steel, Timken, Abercrombie & Fitch, and Wendy's.

Ohio is also one of 41 states with its own lottery, the Ohio Lottery. The Ohio Lottery has contributed over $15.5 billion to public education in its 34-year history.