1. Northeast Ohio
Economic Review
Welcome to the first edition of “Northeast Ohio Economic Review.”
The objective of this publication is to provide key economic data to help
paint a picture of the current state of the economy, enabling appropriate
and timely business decisions impacting the region’s growth.
This publication is unique because the data collected represent all corners
of the 13-county area that constitutes Northeast Ohio. This regional
information is not collected by any other entity and therefore we hope you
find this a valuable resource.
As you’ll see in this first publication, the general overview of our current
economy (figures are through 3Q 2006) is that, although total employment
was down in the past, it is now on an upswing. Recent data confirm this.
While employment declined in 2001 and 2002, jobs have been growing
for the last three years. In addition, we are seeing excellent gains in
productivity. Our manufacturing output is nearly back to its peak and output
per person is up 30+ percent. This increase in competitiveness means wealth
creation and job security. Some of the stronger segments of our economy are
information, professional and scientific technology.
In addition, while our employment rate may be lower than years ago, our
labor force is still producing the same output with a smaller workforce. Some
segments of the economy are growing, for example, high tech (information,
professional, scientific and technical sectors, such as printing, publishing,
Internet and consultants). While economic development organizations in
Northeast Ohio are working to maintain the manufacturing base, we are also
working to grow the knowledge-based sectors.
We hope you enjoy this new publication, and we welcome your input for
future editions, as it is structured to meet your needs.
Together, anything is possible.
Thomas A. Waltermire, chief executive officer, Team NEO
December 2006

2. Employment levels returning to pre-Sept. 11 levels
2,150,000 8.0
7.5
2,100,000
7.0
2,050,000 6.5
Number of Workers
6.0
2,000,000
Percent
5.5
1,950,000
5.0
4.5
1,900,000
4.0
1,850,000
3.5
1,800,000 3.0
1994 1994 1995 1996 1997 1997 1998 1999 2000 2000 2001 2002 2003 2003 2004 2005 2006
NEO Unemployment Rate (%) NEO Employment (number) NEO Total Labor Force (number)
Quarterly Labor Force Trends for NEO
Source: Ohio Labor Market Information, Ohio Workforce Informer, Local Area Unemployment Statistics
The labor force is composed of eligible workers ages 16 and over. While the NEO labor force
(blue line) has hovered slightly above 2 million workers since 1999, the number of those
workers “employed” (orange line) fell after Sept. 11. It was not until recently (2006) that
the number of employed returned to near Sept. 11 levels. The NEO regional unemployment
rate (yellow line) was about 5.3 percent at the end of the third quarter; Ohio’s rate was at
5.0 percent, both above the U.S. rate of 4.4 percent (not seasonally adjusted).
NEO’s labor force (the available pool of workers) is relatively stable, while the region’s
employment rate is approaching pre-Sept. 11 levels.

3. 3.0
2.0
Percent Change
1.0
0.0
-1.0
-2.0
-3.0
1995 1997 1999 2001 2003 2005
NEO Employment* US Employment
Annual Percentage Change for Total Employment
Source: Moody’s Economy.com based on BLS data; *Includes Carroll County
6.0
5.0
4.0
3.0
Percent Change
2.0
1.0
0.0
-1.0
-2.0
-3.0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
NEO GRP* US GDP
Annual Percentage Change for Gross Product (Added Value)
Source: Moody’s Economy.com based on BLS data; *Includes Carroll County
NEO’s employment growth rate has slowed, but the U.S. growth rate is slowing at a greater
rate (first chart); the September 2006 employment growth rate was 5.5 percent for NEO,
5.0 percent for Ohio and 4.4 percent for the U.S. NEO’s gross regional product (second
chart) shows that since 2001, the value-added to goods and services produced by NEO
workers is growing, but a bit more slowly than the U.S. gross domestic product.

4. 18%
16%
14%
12%
10%
8%
6%
4%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Mfg Info & Pro Leisure Trade Health
Percent Employment by Sector (Sectors account for 53% of NEO employment)
Source: Moody’s Economy.com based on BLS data; Includes Carroll County
30%
25%
20%
15%
10%
5%
0%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Mfg Info & Pro Leisure Trade Health
Percent NEO GRP by Sector (Sectors account for 55% of NEO GRP)
Source: Moody’s Economy.com based on BLS data; Includes Carroll County
The charts above show share of the Region’s employment and gross product (value-added)
for the following NAICS sectors: all manufacturing, information (NAICS 51) combined
with professional and technical services (NAICS 54), arts, entertainment and recreation
(NAICS 71) with accommodation and food services (NAICS 72), wholesale trade (NAICS
42) combined with retail trade (NAICS 44 and 45), and healthcare and social services
(NAICS 62). While the manufacturing industries account for 16 percent of the Region’s
employment, they account for 21 percent of the gross regional product (GRP). GRP is the
“value-add” created by the labor component in the production of goods and the rendering
of services.
While manufacturing employment in Northeast Ohio may be declining, this is consistent
with trends for the industry across the U.S. Manufacturing is still the largest contributor to
the Region’s gross product.

5. 110.00
100.00
90.00
80.00
70.00
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
GRP Forecast Employment Forecast GRP Historic Employment Historic
NEO Manufacturing: Growth Index
Source: Moody’s Economy.com based on BLS data; Includes Carroll County
160
150
140
130
120
110
100
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
GRP Forecast Employment Forecast
GRP Historic Employment Historic
NEO Information & Professional Services: Growth Index
Source: Moody’s Economy.com based on BLS data; Includes Carroll County
The manufacturing and high-tech (information, professional, scientific and technical)
sectors contribute 21 percent and 8.5 percent, respectively, to the regional economy and
show steady growth in value (blue lines in the sector growth index charts above).