A new report on working in Ohio offers a mixed picture of labor in the state.

The annual State of Working Ohio report is out for 2022 and while researchers are highlighting the strong post-pandemic job recovery, workers still face challenges.

The report shows the state has recovered 85% of the jobs lost to COVID-19, which is three times faster than the recovery from the great recession 14 years ago. While this is good news, Michael Shields - a researcher with Policy Matters Ohio and the lead author of the report - offered a word of caution.

"There is a note of caution, that depending on how aggressively they push to reduce inflation, the Federal Reserve really could reverse this job growth," said Shields. "We could even see a recession, but generally we're seeing really good recovery."

Shields said the inflation over the last two years was kicked off by the pandemic, but corporate profits now make up over 50% of cost increases.

Over the last few decades many workers in Ohio have been forced to transition out of jobs in manufacturing and into lower wage sectors. The report indicates the state has lost over 700,000 manufacturing jobs since the 1970s.

Shields pointed to a decline in union representation as a major factor keeping wages flat since the '70s. He said that while there have been productivity gains in the workplace over those same decades, corporations and the wealthy have captured nearly all of the profits from those gains.

The report shows only 13% of Ohioans belong to a union and Shields said productivity gains are not enough.

"Productivity is not enough to ensure that everyone in Ohio is able to prosper," said Shields. "Broadly shared prosperity depends on more than productivity, it also depends on bargaining power. We have to make sure that working people have a voice at the table and are able to bargain for their share of the wealth that they're creating."

The report shows the median union wage is close to $5 per hour more than non-union workers.

Another challenge Ohio workers often face is wage theft, where employers don't pay for all hours worked. The report states that misclassification of workers as contractors is one form of wage theft, but Shields said it goes further.

"Employers steal from some 213,000 Ohioans through minimum wage non-payment alone," said Shields. "Now, minimum wage non-payment is not the only form of wage theft. There are other things like not paying time and a half for overtime. Things like not paying for all hours worked. Sometimes folks will work a short-term job and just never get their last paycheck."

Shields said Ohio does not have the investigative resources to address the scale of the wage theft problem in the state.

This story was produced in association with Media in the Public Interest and funded in part by the George Gund Foundation.

A Montana legislative committee this week heard a bill to revise workers' compensation laws. Among opponents were workers who have navigated the system themselves. If a Montana worker were to get hurt on the job today, law requires insurance providers defer to the person's "treating physician." But Senate Bill 345 would remove that policy.

Sen. Greg Hertz, R-Polson, says that helps insurers get the "best available evidence."

Amanda Frickle, political director of Montana AFL- CIO, a state federation of unions, said workers' compensation claims and cases are "meant to be deliberative."

"This bill is fundamentally tipping the scales against the injured worker and in favor of the insurance company when it comes to these workers' compensation claims," she said.

The bill would allow insurers to require an independent medical examination from a provider of the company's choosing, even if that means someone out-of-state. In that case, the insurer would cover expenses such as travel, lodging and child care. But opponents say travel is not conducive to healing.

Niki Zupanic, owner of the Montana Trial Lawyers Association, says that adds to workers' up-front costs.

"Many of these costs, whether or not they will eventually be reimbursed, are likely to be coming out of pocket ahead of time from the injured worker, while they're also working most likely reduced hours and trying to juggle other expenses with their families," she explained.

According to the Montana Department of Labor and Industry, of all Montanans covered by a workers' comp policy, about 4% report an injury in a given year, or 23,000 people.

South Dakota's new governor is making an active pitch regarding economic opportunities for the state. The renewable-energy sector said it continues to build a strong case, including manufacturing jobs.

Gov. Larry Rhoden spent much of March crisscrossing South Dakota on his "Open for Opportunity" tour to hear about promising development, workforce needs and trade issues. It has not received a visit yet but officials with the Marmen Energy plant in Brandon said they are keeping busy. Nearly 300 people there construct towers to hold turbines for wind energy.

Dan Lueders, plant manager for Marmen Energy, called it the very definition of "American-made" products.

"It's fully American made with American steel," Lueders explained. "We're contributing to the American independence on energy and also providing good-paying manufacturing jobs."

The Clean Grid Alliance said the plant produces roughly 1,000 tower sections each year for shipment throughout the upper Midwest. Lueders noted with data centers and other factors driving up electricity demand, he sees more opportunities for his operation. Nationally, enthusiasm has been somewhat dampened by the Trump administration's push to roll back renewable-energy funding, with a stated desire to focus more on fossil fuels.

But utilities are increasingly turning to renewables to diversify their output as demand spikes.

Waylon Brown, president of Rushmore State Renewables and regional policy manager for Clean Grid Alliance, said if South Dakota keeps the welcome mat out for wind and solar development, other industries will want to set up shop here.

"They're looking for nearby energy generation when deciding what states to do business in," Brown pointed out.

In addition to the manufacturing upside, the Energy Information Administration said South Dakota ranks second nationally for wind energy generation. Brown said, for example, having a healthy power supply could be attractive to the health care sector, noting advancement in medical technology is one of the many other things requiring more energy use.

More jobs could be coming to Arkansas as companies interested in bringing manufacturing jobs back to the U.S. consider the Natural State, according to a study by the Reshoring Institute.

Rosemary Coates, executive director of the nonprofit, said the state's low minimum wage is cost-effective for companies requiring a large labor force.

"What we generally encourage our clients to do is look at the major metropolitan areas and set up manufacturing just outside of that area so you can pull from the labor pool there," Coates explained. "Or to look at the metropolitan areas in places like Arkansas."

She noted although manufacturing remains cheaper in other countries, supply-chain problems experienced during the pandemic are making U.S. companies explore options for reshoring. The study did not address the financial effects of possible Trump administration tariffs on materials manufactured abroad.

Twenty states across the country, mainly in the South, pay the federal minimum wage of $7.25 an hour. If labor is a high percentage of a company's costs, it could be less expensive to reshore operations. Coates added some companies opt to have plants in multiple countries.

"Bringing some manufacturing to Mexico and some to the U.S. and keeping some in Asia," Coates outlined. "Companies are really rethinking the whole idea and strategy about where in the world they're manufacturing."

She stressed labor rates vary between rural areas and major cities in every state. Other costs associated with reshoring include local and state taxes, training, tax credits and logistics.


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