YOUNGSTOWN, Ohio – Working remotely provides more flexibility for employees, including an opportunity to work for a better paying company outside their region.

But according to a report by CoworkingMag, while 12% of the workforce in the Midwest region works remotely, the Youngstown-Warren area lags behind with only 8.6% of employees working remotely.

The national average for employees age 16 and older working remotely is 13.8%. Comparatively, Columbus, Ohio, has almost 17% of its workforce working remotely.

Tim Petrey, CEO of HD Growth Partners, said the Youngstown area is historically slower and more cautious about adopting new trends. When HD Growth Partners adopted remote and hybrid opportunities for workers, it required a significant investment of about $1 million, which in part covers technology, cybersecurity and remote training programs.

“In order for employees to be efficient while working remotely, it requires an entirely different infrastructure and management system than a fully in-person operation,” Petrey said.

Petrey said the baby boomer generation, which owns a significant number of Youngstown area businesses, is more hesitant to make large investments as they try to maximize annual earnings while nearing retirement.

“Unfortunately, these businesses will substantially decrease their business valuation when it comes time to sell because the market will be flooded with baby boomer-owned businesses that require substantial investments to make them viable businesses in the future,” Petrey said.

And even if a job is fully remote and employees can peddle their skills across the country or internationally, Youngstown-area workers still are making less. 

CoworkingMag’s report says remote workers in the Midwest earn a median income of about $66,500 per year, with more than 44% reporting an annual income of $75,000 or more. The median income for remote workers in the Youngstown-Warren area is $50,843, and only 31% of teleworkers earn $75,000.

Petrey said local workers generally aren’t compensated as well as other workers across the Midwest, regardless of whether they are working remotely. According to the U.S. Commerce Department’s Bureau of Economic Analysis, the per capita personal income in 2023 in the Youngstown-Warren area overall rose to $51,869, a $1,600 increase from 2022. By comparison, the Cleveland-Elyria metro area was at $67,451 in 2022, followed by Columbus at $65,277, Akron at $62,904 and Canton-Massillon at $56,549.

Omer F. Genc, an associate professor with the management and marketing department of Youngstown State University’s Williamson College of Business Administration, said the median cost of living in the Youngstown region also is lower, and salaries often reflect companies adjusting to the cost of living.

Another reason for the lower compensation may be the percentage of those in the area with college degrees, which Genc pointed out is about 24%, while the average is across the country is 37%.

The majority of remote workers in the Youngstown-Warren area have some higher education, with 47.5% having a bachelor’s degree or higher, according to CoworkingMag. But it is still below the Midwest average of 58% with a bachelor’s degree or higher. Locally, 25.5% have some college or an associate degree, which is comparable to 26% across the Midwest.

In Chicago, 69% of remote workers hold a bachelor’s degree or higher.

“Regions with higher levels of college-degree attainment tend to have more remote work opportunities,” Genc said. “As many remote jobs require specialized knowledge or skills. As this rate is lower in our region, it is not surprising to see a lower percentage of home employees.”

According to the report, in the Youngstown-Warren area, 20.3% of those working remotely are in the professional and business services industry, followed by 14.3% in educational and health services, 13.2% in financial activities and 12.6% in retail trade. Manufacturing is next at 8.3%.

Overall in the Midwest, 24% of employees working remotely are in the professional and business service industry, and 18% are in educational and health services. With 10% of remote workers in manufacturing roles, the Midwest leads the country.

Genc said industry composition affects remote workers. Areas dominated by technology, finance, marketing and customer support tend to have more remote workers, while some of the dominant sectors in the region – health care, construction and manufacturing – are not as compatible with remote work.

Other findings in the CoworkingMag report:

  • Across the Midwest, including in the Youngstown-Warren area, more women, 53%, work remotely than men.
  • Millennials make up the majority of remote workers in the Youngstown-Warren area at 39.4%, followed by Gen X at 29.7%, baby boomers at 20.5% and Gen Z at 9.7%.
  • Across the Midwest, 39% of remote workers are millennials, followed by Gen X at 34%, baby boomers at 17% and Gen Z at 9%.

The report, compiled by CoworkingMag, derived its data from U.S. Census Bureau statistics from 2023, as well as figures from Integrated Public Use Microdata Series USA.