New program will incentivize companies to hire out-of-state, leaving some excited and others skeptical
Ohio & Mahoning Valley - A new incentive launching this summer aims to bring more high-skilled workers to Ohio, but it's already sparking a mix of support and skepticism.
JobsOhio is offering companies $15,000 for every out-of-state worker they hire in select science, technology, engineering, and mathematics (STEM) roles.
The "JobsOhio Relocation Incentive" is set to begin in July, and state leaders said it's designed to fill in-demand jobs, as companies like Intel expand in Columbus.
Supporters argue the initiative is critical to making Ohio competitive with states seeing faster economic and population growth.
Youngstown State University President Bill Johnson, whose university has invested heavily in its own STEM program, supports the move.
"We don't have a birth rate in America that's growing our population at a sustainable rate, and if we don't do something to bring people to Ohio… we're going to have some dark days ahead," Johnson said.
Johnson believes the incentive can complement, not compete with, local institutions.
"Youngstown State is pumping out graduates as fast as we can, but, but there's never enough of them," he said. "So, no, I don't see this as a detriment at all. I see it as a supplement to what we're doing at YSU."
But critics are raising concerns, including whether the program could make it harder for in-state workers and graduates to compete.
Zach Schiller, Research Director of Policy Matters Ohio, said the incentive may be a "misdirected" use of resources.
"We have numerous needs here in Ohio. We have people who can't go to work because they lack affordable, accessible child care. How about getting that taken care of? How about investing in higher education?" Schiller said, "We don't provide the same amount that we did 15 years ago for scholarships for low-income Ohioans. Let's invest in those things and make sure that Ohioans have the opportunities available to them."
Schiller also questioned whether the program benefits workers who are already here.
"We would want to make sure that Ohioans aren't losing out because of this, and I don't know how you would ensure that, frankly," he added, "There are a lot of questions that it raises that need to be answered frankly."
Ohio State Representative Lauren McNally, a Democrat representing Youngstown, echoed those concerns and called for more focus on local workforce development.
"We should be creating programs and investing in programs that retains them here," McNally said, "If we're trying to target a specific industry because there's a specific need that needs filled. Then, does that need need filled today? Or can we invest in YSU for that need to be filled three years from now?"
Republican Ohio Rep Tex Fischer of District 59 said he's looking forward to seeing what comes of the initiative, especially in the Valley, being on the border of PA, at a time when it's difficult to retain the right employees.
"I’m excited to see the results of this initiative," he said, "Workforce is a consistent challenge area employers face and attracting new workers from out of state will help grow our economy. Given the Valley’s proximity to PA, this is a program we could really benefit from."
If successful, this program will be a really valuable tool for us to compete with our neighboring states.
Kent State University economics professor Dr. Omid Bagheri said the idea has merit, but believes political motivations may be influencing the rollout.
"Many of these things that you see are more political than completely thought through," Bagheri said, "The whole purpose behind it is to try to make Ohio the job market stronger, the whole state more populated."
He and others also point to the broader competition among states to attract tech-driven industries.
"All states are trying and fighting to kind of become the magnet for all the high-tech industries," he added.
He added that population growth could give Ohio more leverage nationally.
"With a higher populated state, you can have more power politically at the federal level, so that can also help in that capacity," he said.
The JobsOhio incentive program is scheduled to launch in July.
JobsOhio said additional details will be released in the coming weeks.
"What was shared in last week’s Board of Directors meeting is as much detail as we have right now," a JobsOhio spokesperson said, "More will come as we implement the incentive moving forward."
JobsOhio said people can access a recording of the meeting on the JobsOhio website.
