Cleveland Economy: Healthcare, Manufacturing, and Reinvention

The Cleveland metro area — formally Cleveland-Elyria — is the largest metro economy in northeast Ohio and one of the most healthcare-concentrated metros in the country. It is anchored by the Cleveland Clinic, University Hospitals, and MetroHealth, plus a long industrial history that still shapes specialty steel, polymers, and auto-parts production. Cleveland's economy has spent decades pivoting from heavy manufacturing toward healthcare and professional services.

This is a plain-English tour of how the Cleveland metro economy works. For the state-level picture, see Ohio Economy. For the country-level view, see The State of the U.S. Economy and the broader Economy hub and city cluster.

How big is the Cleveland metro economy?

For example, recent metro GDP for Cleveland-Elyria has run around $150 billion, according to the Bureau of Economic Analysis. Metro population is roughly 2.1 million, per the U.S. Census Bureau. That makes the Cleveland metro larger by population than 10 of the 50 U.S. states.

The biggest industries

A handful of sectors do most of the work in the Cleveland metro economy:

• Healthcare — the Cleveland Clinic is one of the most-cited hospital systems in the world and the largest single employer in the metro. University Hospitals, MetroHealth, and Summa Health together employ huge numbers of additional workers. The metro's medical-research base is unusually deep for its population.
• Manufacturing — specialty steel, polymers, machine tools, and auto parts are still meaningful employers. Sherwin-Williams (paint), Lincoln Electric (welding), Parker Hannifin (motion control), and Eaton (power management) are headquartered in or near the metro.
• Banking and finance — KeyCorp is headquartered in downtown Cleveland, and Progressive Corporation (auto insurance) is headquartered in nearby Mayfield Village. The Federal Reserve Bank of Cleveland adds a research and policy presence.
• Higher education — Case Western Reserve, Cleveland State, John Carroll, and the Cleveland Institute of Art anchor faculty and staff workforces.
• Trade and logistics — the Port of Cleveland on Lake Erie handles bulk and container cargo, and the metro's rail and highway connections make it a meaningful Midwest distribution node.
• Government and nonprofits — the City of Cleveland, Cuyahoga County, and the metro's foundations and arts institutions anchor a meaningful public-sector and nonprofit workforce.
• Tech and software — a quietly growing software, fintech, and back-office cluster, plus the in-house tech operations at Progressive, KeyCorp, and the Clinic.

Jobs and wages

Metro labor data is published by the Bureau of Labor Statistics Midwest region. For example, the Cleveland metro unemployment rate has typically run close to or a tick above the national average, with healthcare hiring offsetting slow declines in heavy manufacturing.

Ohio sets a statewide minimum wage that is above the federal floor of $7.25 and adjusts annually for inflation. The latest rate is at the Ohio Department of Commerce.

Cost of living

Cleveland's cost of living is among the most affordable of any large U.S. metro. For example, recent HUD Fair Market Rent for a two-bedroom in the metro has run around $1,100 a month, with downtown, Tremont, Ohio City, and the eastern suburbs higher and parts of the East Side and outer Lorain County lower. Current county-level numbers are at HUD User.

The federal government tracks region-specific inflation data through the BLS Midwest region. Cleveland's CPI tends to track close to the national average month to month.

Taxes in Cleveland

Ohio has a mildly progressive state income tax that has been flattening over the past decade, and the City of Cleveland levies its own local earnings tax of 2.5% on residents and on people who work in the city. Combined sales tax in Cuyahoga County is 8%, made up of the state's 5.75% base plus city, county, and transit pieces. Property taxes are moderate by U.S. standards but vary by school district. State rules live at the Ohio Department of Taxation, and you can read more about how sales tax works in our glossary.

How the Cleveland metro fits into the national picture

Cleveland is one of the most-cited examples of a Rust Belt metro that pivoted toward healthcare. The Cleveland Clinic's growth — and its global brand — has reshaped the metro's employment base over 30 years. Cleveland has not produced the kind of fast population growth seen in Sun Belt metros, but its broad industry mix and unusually strong medical-research base have made it more recession-resistant than most metros its size.

Reinvention, slowly

Cleveland's reinvention from heavy industry to healthcare has been one of the longer-running U.S. economic stories. Population has been roughly flat for decades, but per-capita output and median wages have risen as the mix has shifted. Federal data on metro industry mix lives at the Bureau of Economic Analysis, and metro employment is tracked by the BLS Midwest region.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and HUD User for the most current data on the Cleveland metro.