An Indiana University Kelley School of Business economist says international markets and education levels are going to play big roles in Indiana’s 2017 economy. Kyle Anderson says, because its manufacturing-heavy economy is dependent on exports, international factors impact Indiana more than many other states. In a Studio (i) interview, Anderson also said lagging education levels among the Hoosier work force will be a hurdle to wage growth moving forward.
Anderson is part of a panel of Kelley economists touring the state over the next two weeks to deliver a national, state and local economic forecast. The projections have a bit of a somber tone, suggesting "little reason for any real optimism" for significant economic growth nationally in 2017. The economists are predicting output growth next year to average slightly above 2 percent.
Indiana’s unemployment rate continues to be lower than the national average. The Indiana Department of Workforce Development says the state’s rate was 4.5 percent in September, compared to a national rate of 5 percent. As the state remains at or near full employment, Anderson says many companies will have no choice but to offer higher wages to attract workers in higher demand. He says it’s up to Hoosier workers to obtain the skills needed for those openings.
You can find more information about the economic outlook tour, which runs through November 18 by clicking here.