Trim Size: 25.375 x 11.0# of Pages: 2# of Colors: 4C ProcessBleed: 0.125

The regional unemployment rate has been following the pattern of both the U.S. and

Ohio. The trends for all three have been similar, although the NEO rate more closely

follows that of Ohio than the U.S. The slowing economy over the last year has

led to a leveling of the improvement trend at all levels.

2007 has the highest average annual employment in the last six years.

This report made possible through the generous support of Charter One Foundation.

737 Bolivar Road, Suite 2000, Cleveland, Ohio 44115888.NEO.1411 • www.teamneo.org • www.clevelandplusbusiness.com

Data Sources: Team Northeast Ohio uses a number of data sources for the Regional Economic Review. One of the primary sources is the Moody’s Economy.com (www.economy.com) regional modeling system. This firm is the leading independent provider of economic, financial and industry research and data that specializes in national and metropolitan economic growth forecasts. Moody’s Economy.com county level output, employment and payroll historical data are estimated from several publicly available sources and are summarized into the Team NEO regional footprint. It is important to understand data provided by Economy.com are estimates of economic activity.

Team NEO also uses data from federal and state sources as part of the report. As with Economy.com, the information for the Team NEO footprint is derived from data reported at either the county or metropolitan level. We rely heavily on data from the U.S. Bureau of Labor Statistics (www.bls.gov) and Ohio’s Labor Market Information (www.lmi.state.oh.us) for information on wages, unemployment and both general and industry-specific employment. In addition, Team NEO uses data from the Census (www.census.gov) to track housing-related activity including the number of single and multifamily permits, as well as their values.

Fourth Quarter Unemployment

Rate Shows Modest

Improvement

1.94

1.96

1.98

2.00

2.02

2.04

2.06

2.08

2002

2003

2004

2005

2006

2007

2002

2003

2004

2005

2006

2007

2002

2003

2004

2005

2006

2007

2002

2003

2004

2005

2006

2007

Q1 Q2 Q3 Q4

(Mill

ions

)

Northeast Ohio Total Employment

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2002 2003 2004 2005 2006 2007

Quarterly Unemployment Rate

NEO 16 Ohio U.S.

$120

$130

$140

$150

$160

$170

$180

0.3%

5.1%3.8%

3.0%

4.8%2.6%

1.2% 0.3%(-1.9)%

1.2%1.8%

2.6% 1.1% 0.7%0.3%

1.0%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Northeast Ohio: Real GRPBillions (2006 Dollars)

Real GRP Average Annual Growth = 1.9%

Northeast Ohio

Economic Review

March 2008

Source: Ohio Labor Market Information (LAUS Data)

Total Employment Is the Highest in the Last Six Years

Modest Growth Expected to Continue in 2008Northeast Ohio is seeing its sixth consecutive year of growth and has grown in 14 of the last 15 years. The anticipated real GRP for 2008 has been added to the chart, and at the time of this printing, we expect modest growth to continue.

The 2007 number was adjusted down as was 2006. This data comes from Moody’s Economy.com, which continues to revise its estimates. Even now, 2007 remains an estimated number. It comes as no surprise 2007 was adjusted down, as we know the economy weakened at the end of the year. The gap between the Average Annual Growth trend line and the 2007 bar is representative of softness in both the national and local economies.

Source: Ohio Labor Market Information (LAUS Data)

Source: Moody’s Economy.com

This chart shows the total jobs in Northeast Ohio without seasonal adjustment. Looking at the history for each quarter makes it easier to see year-to-year comparisons. The overall trend also illustrates the seasonal pattern in employment. Total jobs usually are highest in Q3 and lowest in Q1.

For all of 2007, the employment levels for each quarter have been above or generally equal to the same quarters in 2006. The full year of 2007 outpaced 2006 as the highest annual employment in the last six years.

The seasonal decrease in total employment from Q3 to Q4 2007 was the smallest in recent years, a good sign for the resilience of the Northeast Ohio economy.

About Team NEOTeam NEO markets Northeast Ohio to attract business investment in targeted industry clusters. The organization is a joint venture of the largest metro chambers, representing 16 counties and their 4 million people. Team NEO serves as a central resource, informing and serving those considering investment in Northeast Ohio and is a co-founder of the Cleveland Plus™ Marketing Alliance, a coalition to drive strategic, long-term marketing for Northeast Ohio. For more information, visit www.teamneo.org.

Our partners include:Greater Cleveland Partnership

Greater Akron ChamberStark Development Board

Team Lorain CountyYoungstown-Warren Regional Chamber

Medina County Economic Development Corporation

High-skill industries and jobs fuel continued growth in Northeast Ohio.

AshtabulaLake

Cleveland

Akron Youngstown

Canton

Geauga

Trumbull

Portage

Mahoning

Columbiana

Carroll

Stark

Summit

Cuyahoga

Medina

Lorain

WayneAshland

Richland

Cleveland Plus 16-County Region

Trim Size: 25.375 x 11.0# of Pages: 2# of Colors: 4C ProcessBleed: 0.125

High-Tech Industries to Grow the Fastest; Manufacturing Still StrongThis chart ranks NEO industries based on Economy.com’s 10-year growth projections. The information industry is expected to grow the fastest, a total of 34%. Other faster-growing sectors include manufacturing; professional and technical services; and finance and insurance. Despite current perceptions, manufacturing output is projected to continue growing and will remain the largest sector in terms of GRP. Nearly all sectors are expected to grow. One surprising aspect of the Economy.com forecast is the slow growth projected for the health care industry, at both the national and NEO regional level. This is contrary to other national forecasts that show a general continuation of current growth trends in this sector. The regional forecast reflects expectations for the sectoral growth in the state and the U.S. However, local conditions, such as significant capital investments by health care providers in the region, are not factored into the forecast.

The first edition in 2008 of our quarterly Northeast Ohio Economic Review begins by

comparing our mix of industries with the U.S. as a whole, and then focuses on projections

for the next 10 years.

Projections Indicate Higher Paying Jobs Will Grow Faster

Economy.com predictions show strong growth trends in higher paying occupations. In our last report, we found that over the last 15 years, jobs with above average pay had grown 50% faster than jobs with below average pay. Economy.com’s

projections for the next ten years show jobs with above average pay in total growing 7.5%, while below average pay jobs in the aggregate show no growth

over this period. Thus, the historical trend is expected to be even more pronounced in the future. Higher paying occupations account for all the expected growth in

employment, indicating that education will become even more valuable in the future.

Northeast Ohio Projected Occupational Employment Change: 2007–2017

$0

$20,000

$40,000

$60,000

$80,000

$100,000

-10% -5% 0% 5% 10% 15% 20%

Percent Change

Aver

age

Annu

al W

age

Mgmt

LegalCmptr&Math

Food Prep & Serving

Production

Farm, Fish& Forest

Office & Admin

Hlth CareSpprt

Pers Care& Serv

Hlth CarePract & Tech

Edu,Trng& Lib

Bldg/GrndsClng/MntTrans &

Mtrl Mvg

Arch& Eng

Com & Soc Serv

Art, Dsgn& Ent

Sciences

Bus & FincConstruct

Sales

Install &Repair

ProtectServ

Source: Moody’s Economy.comSource: Moody’s Economy.com

KEY:The size of the bubbles in the chart correlates to the size of employment within the occupational group. The colors are only for ease of readability. The vertical scale shows the average annual wage for the occupation, depicting the Northeast Ohio average annual wage for 2006 (most current data available) of $37,800 with a gold bar. The horizontal scale shows anticipated estimated employment change over the next ten years.

The information sector is expected to grow 34% over the next 10 years.

NEO workforce expected to become more skilled.

Manufacturing and Headquarters Industry Sectors in the Cleveland Plus™ Region Have Higher Share Than U.S.This chart depicts total output for the U.S. and the 16-county Cleveland Plus™ region. The first six bars represent industries in which Northeast Ohio has a higher share of output than the national average. The final five represent those industries in which NEO’s output is less than the U.S. Output in Northeast Ohio continues to be driven by manufacturing, accounting for nearly 23% of total output. Though employment has declined in manufacturing, it remains a productive and essential component of the economy. Finance and insurance, as well as health care and social assistance, comprise a larger portion of the Northeast Ohio economy than they do nationally. This reflects the significant concentration of internationally recognized companies and institutions in this field. The Cleveland Plus region is also the headquarters for 10 Fortune 500 firms and many others. This strong corporate presence is reflected in the larger than national share of “management of companies and enterprises.”

Source: Moody’s Economy.com

0% 5% 10% 15% 20%

Information

Public Administration

All Other Industries

Mgmt of Companies/Entps

Retail Trade

Finance & Insurance

% of Total 2007 Gross Regional Product U.S. NEO

U.S. and Northeast Ohio 2007 Share of Output

Prof, Sci, & Tech Services

Real Estate / Rental & Leasing

Wholesale Trade

Health Care & Soc Asst

Manufacturing

KEY:(applies to both graph #1 & #2)For simplicity, we use “Output” to mean the same as “Gross Regional Product.” This is the total value of economic output less the value of raw material inputs. It is the total value-added component of production derived from a combination of land, labor and capital.

The designation of “All Other Industries” used in the graphs above refers to a combination of six aggregated industries. These industries include utilities; educational services; construction; agriculture, forestry, fishing and hunting; other services; and mining.

Finance, insurance, and health care

comprise a larger portion of the Northeast

Ohio economy than they do nationally.

$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50

Information

Real Estate/Rental & Leasing

Prof, Sci, & Tech Services

Manufacturing

Finance & Insurance

Retail Trade

All Other Industries

Mgmt of Companies/Entps

Public Administration

Health Care & Soc Asst

Wholesale Trade

2017 2007

Northeast Ohio Projected Output Growth: 2007–2017Billions (2006 Dollars)

34%

25%

22%

22%

17%

17%

9%

6%

3%

2%

(-4%)

KEY:(applies to both graph #2 & #3)Moody’s Economy.com is the world-renowned source in economic data and forecasting. Their methodological approach to analysis of the U.S. economy models national and regional variables, allowing a richer set of data for long-term projections, such as the forecasts included in this report.

Trim Size: 25.375 x 11.0# of Pages: 2# of Colors: 4C ProcessBleed: 0.125

High-Tech Industries to Grow the Fastest; Manufacturing Still StrongThis chart ranks NEO industries based on Economy.com’s 10-year growth projections. The information industry is expected to grow the fastest, a total of 34%. Other faster-growing sectors include manufacturing; professional and technical services; and finance and insurance. Despite current perceptions, manufacturing output is projected to continue growing and will remain the largest sector in terms of GRP. Nearly all sectors are expected to grow. One surprising aspect of the Economy.com forecast is the slow growth projected for the health care industry, at both the national and NEO regional level. This is contrary to other national forecasts that show a general continuation of current growth trends in this sector. The regional forecast reflects expectations for the sectoral growth in the state and the U.S. However, local conditions, such as significant capital investments by health care providers in the region, are not factored into the forecast.

The first edition in 2008 of our quarterly Northeast Ohio Economic Review begins by

comparing our mix of industries with the U.S. as a whole, and then focuses on projections

for the next 10 years.

Projections Indicate Higher Paying Jobs Will Grow Faster

Economy.com predictions show strong growth trends in higher paying occupations. In our last report, we found that over the last 15 years, jobs with above average pay had grown 50% faster than jobs with below average pay. Economy.com’s

projections for the next ten years show jobs with above average pay in total growing 7.5%, while below average pay jobs in the aggregate show no growth

over this period. Thus, the historical trend is expected to be even more pronounced in the future. Higher paying occupations account for all the expected growth in

employment, indicating that education will become even more valuable in the future.

Northeast Ohio Projected Occupational Employment Change: 2007–2017

$0

$20,000

$40,000

$60,000

$80,000

$100,000

-10% -5% 0% 5% 10% 15% 20%

Percent Change

Aver

age

Annu

al W

age

Mgmt

LegalCmptr&Math

Food Prep & Serving

Production

Farm, Fish& Forest

Office & Admin

Hlth CareSpprt

Pers Care& Serv

Hlth CarePract & Tech

Edu,Trng& Lib

Bldg/GrndsClng/MntTrans &

Mtrl Mvg

Arch& Eng

Com & Soc Serv

Art, Dsgn& Ent

Sciences

Bus & FincConstruct

Sales

Install &Repair

ProtectServ

Source: Moody’s Economy.comSource: Moody’s Economy.com

KEY:The size of the bubbles in the chart correlates to the size of employment within the occupational group. The colors are only for ease of readability. The vertical scale shows the average annual wage for the occupation, depicting the Northeast Ohio average annual wage for 2006 (most current data available) of $37,800 with a gold bar. The horizontal scale shows anticipated estimated employment change over the next ten years.

The information sector is expected to grow 34% over the next 10 years.

NEO workforce expected to become more skilled.

Manufacturing and Headquarters Industry Sectors in the Cleveland Plus™ Region Have Higher Share Than U.S.This chart depicts total output for the U.S. and the 16-county Cleveland Plus™ region. The first six bars represent industries in which Northeast Ohio has a higher share of output than the national average. The final five represent those industries in which NEO’s output is less than the U.S. Output in Northeast Ohio continues to be driven by manufacturing, accounting for nearly 23% of total output. Though employment has declined in manufacturing, it remains a productive and essential component of the economy. Finance and insurance, as well as health care and social assistance, comprise a larger portion of the Northeast Ohio economy than they do nationally. This reflects the significant concentration of internationally recognized companies and institutions in this field. The Cleveland Plus region is also the headquarters for 10 Fortune 500 firms and many others. This strong corporate presence is reflected in the larger than national share of “management of companies and enterprises.”

Source: Moody’s Economy.com

0% 5% 10% 15% 20%

Information

Public Administration

All Other Industries

Mgmt of Companies/Entps

Retail Trade

Finance & Insurance

% of Total 2007 Gross Regional Product U.S. NEO

U.S. and Northeast Ohio 2007 Share of Output

Prof, Sci, & Tech Services

Real Estate / Rental & Leasing

Wholesale Trade

Health Care & Soc Asst

Manufacturing

KEY:(applies to both graph #1 & #2)For simplicity, we use “Output” to mean the same as “Gross Regional Product.” This is the total value of economic output less the value of raw material inputs. It is the total value-added component of production derived from a combination of land, labor and capital.

The designation of “All Other Industries” used in the graphs above refers to a combination of six aggregated industries. These industries include utilities; educational services; construction; agriculture, forestry, fishing and hunting; other services; and mining.

Finance, insurance, and health care

comprise a larger portion of the Northeast

Ohio economy than they do nationally.

$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50

Information

Real Estate/Rental & Leasing

Prof, Sci, & Tech Services

Manufacturing

Finance & Insurance

Retail Trade

All Other Industries

Mgmt of Companies/Entps

Public Administration

Health Care & Soc Asst

Wholesale Trade

2017 2007

Northeast Ohio Projected Output Growth: 2007–2017Billions (2006 Dollars)

34%

25%

22%

22%

17%

17%

9%

6%

3%

2%

(-4%)

KEY:(applies to both graph #2 & #3)Moody’s Economy.com is the world-renowned source in economic data and forecasting. Their methodological approach to analysis of the U.S. economy models national and regional variables, allowing a richer set of data for long-term projections, such as the forecasts included in this report.

Trim Size: 25.375 x 11.0# of Pages: 2# of Colors: 4C ProcessBleed: 0.125

High-Tech Industries to Grow the Fastest; Manufacturing Still StrongThis chart ranks NEO industries based on Economy.com’s 10-year growth projections. The information industry is expected to grow the fastest, a total of 34%. Other faster-growing sectors include manufacturing; professional and technical services; and finance and insurance. Despite current perceptions, manufacturing output is projected to continue growing and will remain the largest sector in terms of GRP. Nearly all sectors are expected to grow. One surprising aspect of the Economy.com forecast is the slow growth projected for the health care industry, at both the national and NEO regional level. This is contrary to other national forecasts that show a general continuation of current growth trends in this sector. The regional forecast reflects expectations for the sectoral growth in the state and the U.S. However, local conditions, such as significant capital investments by health care providers in the region, are not factored into the forecast.

The first edition in 2008 of our quarterly Northeast Ohio Economic Review begins by

comparing our mix of industries with the U.S. as a whole, and then focuses on projections

for the next 10 years.

Projections Indicate Higher Paying Jobs Will Grow Faster

Economy.com predictions show strong growth trends in higher paying occupations. In our last report, we found that over the last 15 years, jobs with above average pay had grown 50% faster than jobs with below average pay. Economy.com’s

projections for the next ten years show jobs with above average pay in total growing 7.5%, while below average pay jobs in the aggregate show no growth

over this period. Thus, the historical trend is expected to be even more pronounced in the future. Higher paying occupations account for all the expected growth in

employment, indicating that education will become even more valuable in the future.

Northeast Ohio Projected Occupational Employment Change: 2007–2017

$0

$20,000

$40,000

$60,000

$80,000

$100,000

-10% -5% 0% 5% 10% 15% 20%

Percent Change

Aver

age

Annu

al W

age

Mgmt

LegalCmptr&Math

Food Prep & Serving

Production

Farm, Fish& Forest

Office & Admin

Hlth CareSpprt

Pers Care& Serv

Hlth CarePract & Tech

Edu,Trng& Lib

Bldg/GrndsClng/MntTrans &

Mtrl Mvg

Arch& Eng

Com & Soc Serv

Art, Dsgn& Ent

Sciences

Bus & FincConstruct

Sales

Install &Repair

ProtectServ

Source: Moody’s Economy.comSource: Moody’s Economy.com

KEY:The size of the bubbles in the chart correlates to the size of employment within the occupational group. The colors are only for ease of readability. The vertical scale shows the average annual wage for the occupation, depicting the Northeast Ohio average annual wage for 2006 (most current data available) of $37,800 with a gold bar. The horizontal scale shows anticipated estimated employment change over the next ten years.

The information sector is expected to grow 34% over the next 10 years.

NEO workforce expected to become more skilled.

Manufacturing and Headquarters Industry Sectors in the Cleveland Plus™ Region Have Higher Share Than U.S.This chart depicts total output for the U.S. and the 16-county Cleveland Plus™ region. The first six bars represent industries in which Northeast Ohio has a higher share of output than the national average. The final five represent those industries in which NEO’s output is less than the U.S. Output in Northeast Ohio continues to be driven by manufacturing, accounting for nearly 23% of total output. Though employment has declined in manufacturing, it remains a productive and essential component of the economy. Finance and insurance, as well as health care and social assistance, comprise a larger portion of the Northeast Ohio economy than they do nationally. This reflects the significant concentration of internationally recognized companies and institutions in this field. The Cleveland Plus region is also the headquarters for 10 Fortune 500 firms and many others. This strong corporate presence is reflected in the larger than national share of “management of companies and enterprises.”

Source: Moody’s Economy.com

0% 5% 10% 15% 20%

Information

Public Administration

All Other Industries

Mgmt of Companies/Entps

Retail Trade

Finance & Insurance

% of Total 2007 Gross Regional Product U.S. NEO

U.S. and Northeast Ohio 2007 Share of Output

Prof, Sci, & Tech Services

Real Estate / Rental & Leasing

Wholesale Trade

Health Care & Soc Asst

Manufacturing

KEY:(applies to both graph #1 & #2)For simplicity, we use “Output” to mean the same as “Gross Regional Product.” This is the total value of economic output less the value of raw material inputs. It is the total value-added component of production derived from a combination of land, labor and capital.

The designation of “All Other Industries” used in the graphs above refers to a combination of six aggregated industries. These industries include utilities; educational services; construction; agriculture, forestry, fishing and hunting; other services; and mining.

Finance, insurance, and health care

comprise a larger portion of the Northeast

Ohio economy than they do nationally.

$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50

Information

Real Estate/Rental & Leasing

Prof, Sci, & Tech Services

Manufacturing

Finance & Insurance

Retail Trade

All Other Industries

Mgmt of Companies/Entps

Public Administration

Health Care & Soc Asst

Wholesale Trade

2017 2007

Northeast Ohio Projected Output Growth: 2007–2017Billions (2006 Dollars)

34%

25%

22%

22%

17%

17%

9%

6%

3%

2%

(-4%)

KEY:(applies to both graph #2 & #3)Moody’s Economy.com is the world-renowned source in economic data and forecasting. Their methodological approach to analysis of the U.S. economy models national and regional variables, allowing a richer set of data for long-term projections, such as the forecasts included in this report.

Trim Size: 25.375 x 11.0# of Pages: 2# of Colors: 4C ProcessBleed: 0.125

The regional unemployment rate has been following the pattern of both the U.S. and

Ohio. The trends for all three have been similar, although the NEO rate more closely

follows that of Ohio than the U.S. The slowing economy over the last year has

led to a leveling of the improvement trend at all levels.

2007 has the highest average annual employment in the last six years.

This report made possible through the generous support of Charter One Foundation.

737 Bolivar Road, Suite 2000, Cleveland, Ohio 44115888.NEO.1411 • www.teamneo.org • www.clevelandplusbusiness.com

Data Sources: Team Northeast Ohio uses a number of data sources for the Regional Economic Review. One of the primary sources is the Moody’s Economy.com (www.economy.com) regional modeling system. This firm is the leading independent provider of economic, financial and industry research and data that specializes in national and metropolitan economic growth forecasts. Moody’s Economy.com county level output, employment and payroll historical data are estimated from several publicly available sources and are summarized into the Team NEO regional footprint. It is important to understand data provided by Economy.com are estimates of economic activity.

Team NEO also uses data from federal and state sources as part of the report. As with Economy.com, the information for the Team NEO footprint is derived from data reported at either the county or metropolitan level. We rely heavily on data from the U.S. Bureau of Labor Statistics (www.bls.gov) and Ohio’s Labor Market Information (www.lmi.state.oh.us) for information on wages, unemployment and both general and industry-specific employment. In addition, Team NEO uses data from the Census (www.census.gov) to track housing-related activity including the number of single and multifamily permits, as well as their values.

Fourth Quarter Unemployment

Rate Shows Modest

Improvement

1.94

1.96

1.98

2.00

2.02

2.04

2.06

2.08

2002

2003

2004

2005

2006

2007

2002

2003

2004

2005

2006

2007

2002

2003

2004

2005

2006

2007

2002

2003

2004

2005

2006

2007

Q1 Q2 Q3 Q4

(Mill

ions

)

Northeast Ohio Total Employment

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2002 2003 2004 2005 2006 2007

Quarterly Unemployment Rate

NEO 16 Ohio U.S.

$120

$130

$140

$150

$160

$170

$180

0.3%

5.1%3.8%

3.0%

4.8%2.6%

1.2% 0.3%(-1.9)%

1.2%1.8%

2.6% 1.1% 0.7%0.3%

1.0%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Northeast Ohio: Real GRPBillions (2006 Dollars)

Real GRP Average Annual Growth = 1.9%

Northeast Ohio

Economic Review

March 2008

Source: Ohio Labor Market Information (LAUS Data)

Total Employment Is the Highest in the Last Six Years

Modest Growth Expected to Continue in 2008Northeast Ohio is seeing its sixth consecutive year of growth and has grown in 14 of the last 15 years. The anticipated real GRP for 2008 has been added to the chart, and at the time of this printing, we expect modest growth to continue.

The 2007 number was adjusted down as was 2006. This data comes from Moody’s Economy.com, which continues to revise its estimates. Even now, 2007 remains an estimated number. It comes as no surprise 2007 was adjusted down, as we know the economy weakened at the end of the year. The gap between the Average Annual Growth trend line and the 2007 bar is representative of softness in both the national and local economies.

Source: Ohio Labor Market Information (LAUS Data)

Source: Moody’s Economy.com

This chart shows the total jobs in Northeast Ohio without seasonal adjustment. Looking at the history for each quarter makes it easier to see year-to-year comparisons. The overall trend also illustrates the seasonal pattern in employment. Total jobs usually are highest in Q3 and lowest in Q1.

For all of 2007, the employment levels for each quarter have been above or generally equal to the same quarters in 2006. The full year of 2007 outpaced 2006 as the highest annual employment in the last six years.

The seasonal decrease in total employment from Q3 to Q4 2007 was the smallest in recent years, a good sign for the resilience of the Northeast Ohio economy.

About Team NEOTeam NEO markets Northeast Ohio to attract business investment in targeted industry clusters. The organization is a joint venture of the largest metro chambers, representing 16 counties and their 4 million people. Team NEO serves as a central resource, informing and serving those considering investment in Northeast Ohio and is a co-founder of the Cleveland Plus™ Marketing Alliance, a coalition to drive strategic, long-term marketing for Northeast Ohio. For more information, visit www.teamneo.org.

Our partners include:Greater Cleveland Partnership

Greater Akron ChamberStark Development Board

Team Lorain CountyYoungstown-Warren Regional Chamber

Medina County Economic Development Corporation

High-skill industries and jobs fuel continued growth in Northeast Ohio.

AshtabulaLake

Cleveland

Akron Youngstown

Canton

Geauga

Trumbull

Portage

Mahoning

Columbiana

Carroll

Stark

Summit

Cuyahoga

Medina

Lorain

WayneAshland

Richland

Cleveland Plus 16-County Region

Trim Size: 25.375 x 11.0# of Pages: 2# of Colors: 4C ProcessBleed: 0.125

The regional unemployment rate has been following the pattern of both the U.S. and

Ohio. The trends for all three have been similar, although the NEO rate more closely

follows that of Ohio than the U.S. The slowing economy over the last year has

led to a leveling of the improvement trend at all levels.

2007 has the highest average annual employment in the last six years.

This report made possible through the generous support of Charter One Foundation.

737 Bolivar Road, Suite 2000, Cleveland, Ohio 44115888.NEO.1411 • www.teamneo.org • www.clevelandplusbusiness.com

Data Sources: Team Northeast Ohio uses a number of data sources for the Regional Economic Review. One of the primary sources is the Moody’s Economy.com (www.economy.com) regional modeling system. This firm is the leading independent provider of economic, financial and industry research and data that specializes in national and metropolitan economic growth forecasts. Moody’s Economy.com county level output, employment and payroll historical data are estimated from several publicly available sources and are summarized into the Team NEO regional footprint. It is important to understand data provided by Economy.com are estimates of economic activity.

Team NEO also uses data from federal and state sources as part of the report. As with Economy.com, the information for the Team NEO footprint is derived from data reported at either the county or metropolitan level. We rely heavily on data from the U.S. Bureau of Labor Statistics (www.bls.gov) and Ohio’s Labor Market Information (www.lmi.state.oh.us) for information on wages, unemployment and both general and industry-specific employment. In addition, Team NEO uses data from the Census (www.census.gov) to track housing-related activity including the number of single and multifamily permits, as well as their values.

Fourth Quarter Unemployment

Rate Shows Modest

Improvement

1.94

1.96

1.98

2.00

2.02

2.04

2.06

2.08

2002

2003

2004

2005

2006

2007

2002

2003

2004

2005

2006

2007

2002

2003

2004

2005

2006

2007

2002

2003

2004

2005

2006

2007

Q1 Q2 Q3 Q4

(Mill

ions

)

Northeast Ohio Total Employment

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2002 2003 2004 2005 2006 2007

Quarterly Unemployment Rate

NEO 16 Ohio U.S.

$120

$130

$140

$150

$160

$170

$180

0.3%

5.1%3.8%

3.0%

4.8%2.6%

1.2% 0.3%(-1.9)%

1.2%1.8%

2.6% 1.1% 0.7%0.3%

1.0%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Northeast Ohio: Real GRPBillions (2006 Dollars)

Real GRP Average Annual Growth = 1.9%

Northeast Ohio

Economic Review

March 2008

Source: Ohio Labor Market Information (LAUS Data)

Total Employment Is the Highest in the Last Six Years

Modest Growth Expected to Continue in 2008Northeast Ohio is seeing its sixth consecutive year of growth and has grown in 14 of the last 15 years. The anticipated real GRP for 2008 has been added to the chart, and at the time of this printing, we expect modest growth to continue.

The 2007 number was adjusted down as was 2006. This data comes from Moody’s Economy.com, which continues to revise its estimates. Even now, 2007 remains an estimated number. It comes as no surprise 2007 was adjusted down, as we know the economy weakened at the end of the year. The gap between the Average Annual Growth trend line and the 2007 bar is representative of softness in both the national and local economies.

Source: Ohio Labor Market Information (LAUS Data)

Source: Moody’s Economy.com

This chart shows the total jobs in Northeast Ohio without seasonal adjustment. Looking at the history for each quarter makes it easier to see year-to-year comparisons. The overall trend also illustrates the seasonal pattern in employment. Total jobs usually are highest in Q3 and lowest in Q1.

For all of 2007, the employment levels for each quarter have been above or generally equal to the same quarters in 2006. The full year of 2007 outpaced 2006 as the highest annual employment in the last six years.

The seasonal decrease in total employment from Q3 to Q4 2007 was the smallest in recent years, a good sign for the resilience of the Northeast Ohio economy.

About Team NEOTeam NEO markets Northeast Ohio to attract business investment in targeted industry clusters. The organization is a joint venture of the largest metro chambers, representing 16 counties and their 4 million people. Team NEO serves as a central resource, informing and serving those considering investment in Northeast Ohio and is a co-founder of the Cleveland Plus™ Marketing Alliance, a coalition to drive strategic, long-term marketing for Northeast Ohio. For more information, visit www.teamneo.org.

Our partners include:Greater Cleveland Partnership

Greater Akron ChamberStark Development Board

Team Lorain CountyYoungstown-Warren Regional Chamber

Medina County Economic Development Corporation

High-skill industries and jobs fuel continued growth in Northeast Ohio.

AshtabulaLake

Cleveland

Akron Youngstown

Canton

Geauga

Trumbull

Portage

Mahoning

Columbiana

Carroll

Stark

Summit

Cuyahoga

Medina

Lorain

WayneAshland

Richland

Cleveland Plus 16-County Region