JLL Cleveland Industrial Employment Update May 2015
1. Sources: JLL Research, Bureau of Labor Statistics
Job growth/loss by sector (12-month change)
Cleveland
-2,100
-1,600
100
700
1,000
1,000
1,200
1,400
3,500
9,100
-4,000 0 4,000 8,000 12,000
Trade, Transportation & Utilities
Mining, Logging & Construction
Information
Government
Manufacturing
Financial Activities
Other Services
Professional & Business Services
Educational & Health Services
Leisure & Hospitality
Number of Jobs
Total jobs vs. unemployment rate
Cleveland
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
850,000
900,000
950,000
1,000,000
1,050,000
1,100,000
2000 2002 2004 2006 2008 2010 2012 2014
Peak: 1,080,614 jobs
2.2%
unemployment rate
total jobs
Industrial employment update
Metro Cleveland . May 2015
5.7%Cleveland unemployment
1.4%Cleveland 12-month job growth
5.4%U.S. unemployment
2.2%U.S. 12-month job growth
• According to the most recent estimates from the BLS, total non-
farm employment in Cleveland stood at ~1.0 million payrolls,
representing an annualized increase of 14,300 jobs or 1.4 percent.
Meanwhile, unemployment decreased 100 basis points year-over-
year to 5.7 percent.
• Industrial employment sectors contracted slightly over the last year,
recording an annualized net loss of 1,500 jobs across the metro.
The largest job losses occurred in the trade, transportation and
utilities sector, where total employment declined by 2,100 jobs
year-over-year.
• Total U.S. nonfarm employment increased by 223,000 jobs in April,
a healthy uptick after a disappointing March where job gains totaled
just 85,000. The strong April results will help lower concerns among
economists and Wall Street of a hiring slowdown.
• U.S. unemployment decreased 10 basis points to 5.4 percent, its
lowest mark since May 2008. Wages also continued to trend in the
right direction in April, increasing 2.2 percent year-over-year.
Due in part to the effects of manufacturers’ rebuilding inventories, along with
an upward trend in consumer spending, Cleveland’s industrial leasing market
has seen improvement. The region has recorded positive absorption of
industrial space for three consecutive years. The demand picture for the next
few years has also improved, thanks to a growing local economy which
recently surpassed pre-recession manufacturing exports levels.
Demand for modern warehouse space is forecasted to increase distinctly
over the coming year as employers look to add capacity and efficiencies.
Many developers are still wary of speculative construction, so look for most of
this new stock to come online as build-to-suit projects. The average asking
rent in Cleveland has been steadily rising over the last two years and while
further gains are expected over the coming year, Cleveland will remain one of
the most affordable industrial markets in the United States.
Industrial real estate implications
Industrial employment trends (12-month change)
Cleveland
-15.0
-5.0
5.0
15.0
2011
2012
2013
2014
2015
Mining, Logging & Construction Trade,Transportation & Utilities Manufacturing Other Services