Cleveland's economy is finally starting to throw some weight around, with higher incomes, more businesses and modest job growth, but local leaders say there is a catch: the region still does not have enough people to fill all the jobs on offer. A new report from the Greater Cleveland Partnership points to an economy with rising pay and expanding firms, yet not enough residents or recent graduates to staff them, a talent gap that has business and civic leaders worried heading into 2026.
The GCP's 2024 annual analysis, which uses data through 2024, found per-capita income rose 4.7% to about $70,558 and business activity grew roughly 2%. That marks one of the stronger income performances among peer metros, according to Cleveland.com. On paper those are solid wins, yet they sit alongside more modest job gains that have leaders fixated on whether the region can keep a steady pipeline of workers.
Numbers at a glance
Nonfarm payrolls rose about 0.4% to roughly 1.1 million jobs, a pace that left the region sixth among its peer set for job growth, while business growth ranked the region fourth in the Greater Cleveland Partnership's metrics, according to the Greater Cleveland Partnership's annual findings. In everyday terms, companies are expanding and pay is rising, but headcount growth is not yet keeping up with the region's gains in income and business counts.
Unemployment is low, yet openings remain
On the surface, the labor market looks solid. The U.S. Bureau of Labor Statistics reported the Cleveland-Elyria metro's unemployment rate at 3.4% in December 2025. Yet employers are still advertising tens of thousands of positions, with an OhioMeansJobs search returning roughly 36,000 openings within a 50-mile radius, Cleveland.com reported. That mismatch between low unemployment and high postings helps explain why firms say they are growing but still scrambling to hire for critical roles.
Talent pipeline still lags
The Cleveland Talent Alliance reported a 51% retention rate for the Class of 2024, up from prior years but short of its 55% target, a metric the partnership views as central to sustaining growth. "Our biggest challenge is now people: with thriving businesses, plentiful jobs, and a great place to live, we need more people to propel our growth," Baiju R. Shah, GCP's president and CEO, wrote in the partnership's coverage of the annual figures. The partnership is responding with coordinated outreach, campus programs and a refreshed jobs platform aimed at nudging that retention rate higher.
What leaders are doing
Civic and business groups are leaning into the GCP "All In" plan, pairing it with job-board relaunches, intern-to-hire programs and marketing that targets recent graduates and remote workers. Local coverage from Cleveland Magazine notes the region's labor force and employment totals have trended higher in recent months, suggesting those attraction efforts may be starting to register.
For now, the picture is mixed. Payrolls, incomes and small-business counts are all moving in the right direction, but population and talent retention remain the limiting factor. If the region can convert a few more graduates and newcomers into long-term residents, the report suggests, Cleveland's economic momentum could evolve into a broader and more durable recovery.
