Indiana is reporting its largest one-month unemployment rate drop in 20 years. The state's January rate was 6.4 percent, down from 6.8 percent in December. That's its lowest level since 2008. Ball State University economist Michael Hicks says he continues to be “really pleased” by the state's numbers. He says a spike in manufacturing jobs shows Indiana is growing in “sustainable” sectors. Indiana's rate remains below neighboring states and the national jobless level. March 17, 2014
INDIANAPOLIS, Ind. – Indiana's seasonally adjusted unemployment rate dropped 0.4 percent to 6.4 percent in January and is now at the lowest point since September of 2008 (6.3 percent). The rate of unemployment in Indiana remains below all neighboring states and is now lower than the national rate by 0.2 percent. Prior to the benchmarking process, the last time Indiana's rate was lower than the national rate was June of 2012.
Despite a gain of 4,600 jobs in the manufacturing sector, Indiana shed a total of 7,100 private sector jobs in January mainly due to the extreme nature of the winter season, which has been cited by the U.S. Federal Reserve as one of the chief causes of employment contraction throughout the country.
“There are many positives to note this month,” said Scott B. Sanders, Commissioner of the Indiana Department of Workforce Development. “Indiana's unemployment rate is not only lower than our neighboring states, but the national rate as well. In addition, 2,700 Hoosiers returned to the labor force and fewer were unemployed in January than at any time since August of 2008, causing our rate to fall almost one-half of a percentage point in one month.”
Sanders also noted Indiana's 2013 total private sector job growth number was revised upward by 8,200 jobs to 50,800 by the U.S. Bureau of Labor Statistics, and despite the extreme winter weather, initial claims for unemployment insurance benefits were nearly 6,000 below January 2013 levels.
Employment by Sector
Sectors showing gains in January include: Manufacturing (4,600), Financial Activites (1,400) and Professional & Business Services (200). Sectors showing decline in January include: Trade, Transportation & Utilities (-4,900), Construction (-4,300), Private Educational & Health Services (-2,100) and Leisure and Hospitality (-600). Total non-farm employment decreased in January (-10,000).
EDITOR'S NOTE: Total private sector jobs were revised upward (+3,200) for December by the U.S. Bureau of Labor Statistics. The February 2014 Employment Report will be released on Friday, March 28, 2014 due to the yearly federal benchmarking process.
Source: The State of Indiana
March 17, 2014
INDIANAPOLIS, Ind. – Governor Pence Statement on January 2014 Indiana Employment Report
Indianapolis – Governor Mike Pence issued the following statement regarding the January 2014 Indiana Employment Report.
“Every Hoosier should be encouraged by today's unemployment numbers, which show the largest one-month drop in unemployment in 20 years. Indiana's rate is now lower than the national average, and our labor force and population continue to grow.
“Amidst this good news, we know that unemployment numbers are not a complete measure of the health of the economy. Too many Hoosiers are still struggling, which is why we need to continue pushing to improve Indiana’s economic climate, to attract more jobs, and to make sure Hoosier workers have the skills they need for the jobs of the future. With this legislative session's accomplishments in cutting the corporate income tax rate, giving counties new tools for reforming the business personal property tax, and offering new opportunities for career education and retraining, we continue to work hard to ensure the future economic prosperity of our state.”
Source: The Office of Governor Mike Pence