Northeast Ohio’s job market is pulling in two directions. Health care employers kept hiring this spring, but the gains at hospitals and clinics were not strong enough to counter job cuts in manufacturing and other goods-producing sectors. The result: regional payrolls that are flat to slightly down and an uneven recovery that depends a lot on which side of town – and which industry – you work in.
As reported by Crain's Cleveland, health care and social assistance employers posted net job increases even as manufacturing and related sectors shed workers, leaving Northeast Ohio with an overall decline in employment. Reporter Elizabeth Schanz draws on regional payroll data and local analysis to highlight just how sharply those sectors are pulling apart.
Team NEO Wins Deals, But The Job Gap Lingers
On paper, Team NEO has plenty to celebrate. The regional group’s 2025 annual report lists roughly 92 announced investment projects that are expected to create about 2,953 new jobs. Those are real commitments, but they may not immediately replace the manufacturing and other goods-producing payrolls that have already slipped away. WOIO/Cleveland 19 reported on the findings and noted that Team NEO leadership is still pushing hard on business attraction to close that gap.
National Numbers Echo The Local Split
The national picture is telling a similar story. According to the Nasdaq write-up of the ADP National Employment Report, education and health services added about 58,000 jobs in March while manufacturing lost roughly 11,000. ADP also flagged the Northeast as one of the weaker regions in the country. Those broader trends mirror what is playing out in Northeast Ohio and suggest that health care is effectively propping up hiring while goods-producing industries pull back.
Why Local Manufacturers Are Hitting The Brakes
Local manufacturing leaders describe operating “steady under pressure,” juggling higher material costs, tariff uncertainty and lingering staffing gaps. None of that makes broad payroll growth easy. MAGNET’s 2025 manufacturing survey outlines these pressures and finds many Ohio firms focused on holding the line rather than ramping up headcount, which helps explain why solid health care hiring is not translating into overall job gains. MAGNET provides additional detail on the specific challenges facing area manufacturers.
What Northeast Ohio Should Watch Next
Regional leaders say closing the divide will take a mix of business attraction, employer retention and workforce training to connect residents with openings in both health care and advanced manufacturing. “In 2026, we will sharpen our focus on business attraction efforts,” Team NEO CEO Matt Dolan said in the annual report, according to WOIO/Cleveland 19. Analysts add that upcoming state and federal payroll releases will be crucial for seeing whether health care can keep leading job growth and whether manufacturing finally stabilizes.
