The already cloudy economic forecast is showing signs of becoming even more gloomy.
As the Ohio jobless rate soars above the national average, state officials warn the fund that pays unemployment claims may be running out.
That shortfall has Ohio Governor Ted Strickland seeking help from the Federal Government.
Locally, there are rising concerns about the rapid loss of Tri-State jobs. As many as 10,000 employees may be out of work when DHL pulls out of Wilmington. A recent announcement of deep cuts in Hamilton County may result in many others out of work. Hamilton County Job and Family Services has already announced the elimination of 350 positions from its work force.
With 7.2 percent of Ohio's work force unemployed, the trust that funds Ohio's unemployment compensation has been strained to its limits and is dwindling quickly. As job seekers search for new employment, the state braces to absorb these additional job cuts.
The economic slowdown has greatly impacted the unemployment fund. The state's minimum safe balance for the fund is $2.5 billion; however, the fund is currently operating with a balance of $325 million.
Ohio pays about $100 million per month in unemployment compensation.
In September, there were over 29,000 new jobless claims. Officials anticipate that number to continue to grow in the upcoming months.
To meet the shortfall, Governor Strickland is appealing to the federal government for assistance in replenishing the fund. He hopes to prevent the state from taking out a loan it may have trouble paying back.
