State's 6.4% jobless rate is the highest since '87
Layoffs and slower construction offset slight uptick in jobs
Indiana's unemployment rate inched up in August to 6.4 percent, the highest level in 21 years.
The state's jobless rate now has exceeded the nation's -- 6.1 percent -- for three straight months, although Indiana continued to post smaller jobless numbers than its industrial neighbors, the U.S. Bureau of Labor Statistics reported Friday.
Layoffs in the automotive and recreation vehicle industries have pushed up unemployment in Indiana, along with a construction slowdown spawned by flooding. More than 2,500 jobs have been lost this year because of motor coach and trailer company layoffs.
In nearby states, the August unemployment rate reached 8.9 percent in Michigan, 7.4 percent in Ohio and 7.3 percent in Illinois.
Indiana is suffering the effects of a national economic slowdown, according to Gov. Mitch Daniels' spokeswoman.
"We're being affected by what's happening with the national economy but holding up better than our neighbors," said Jane Jankowski.
Indiana's jobless rate already has surpassed the highs set during the downturns that began in 1991 and 2001. During those periods, regarded as mild recessions, the unemployment rate peaked at 6.3 percent in June 1992 and 5.4 percent in April 2002.
Jill Long Thompson, Democratic gubernatorial candidate, said Indiana's economy is in serious trouble.
In August, the number of people holding jobs totaled 3.04 million in Indiana. This was about 7,000 more statewide than in July, but the jobless rate still rose, driven by wider job losses and a larger labor force. The number of unemployed rose to 207,000 from 204,000 the month before.
The jobless rate is computed using a formula that divides the number of people unemployed by the number of people in the labor force. The labor force includes people employed, unemployed and looking for work.
August layoffs included 200 ice cream plant workers from Driggs Farms in Decatur and the first of what will total 412 employees to be laid off by Parsons, which is completing a cleanup of a nerve agent depot at Newport.
Layoffs pushed the jobless rate up slightly from 6.3 percent in July, which in turn had climbed 0.5 of a percentage point from June.
Indiana's unemployment rate hasn't been this high since 1987. Climbing out of the severe 1981-82 recession, the unemployment rate registered 6.4 percent in February 1987, on its way down from the modern peak, 12.8 percent in November 1982.
The job losses come at a time when businesses are also expanding, particularly in the Indianapolis metropolitan area.
Indianapolis Economic Development said expansions disclosed in August in Marion County will bring 690 new jobs, 986 retained jobs and $101.9 million in capital investment. Most of the new work is scheduled to appear within two years.
The average hourly wage for the new jobs created in August is $27.50, and the average hourly wage for the retained jobs is about $24.90, IED said, noting the expansions, all previously announced, include EnerDel, McGowan Insurance, Polaris Laboratories and Charles Schwab.
"Indianapolis is a city that's working," Mayor Greg Ballard said in a prepared statement. "Our successes keep piling higher, and these latest job numbers show that we are continuing to create employment while many big cities continue to struggle."
Across Indiana, businesses receiving incentives from the Indiana Economic Development Corp. have committed to creating more than 15,000 jobs this year, the agency said.
Call Star reporter Ted Evanoff at (317) 444-6019
Indiana's unemployment rate inched up in August to 6.4 percent, the highest level in 21 years.
The state's jobless rate now has exceeded the nation's -- 6.1 percent -- for three straight months, although Indiana continued to post smaller jobless numbers than its industrial neighbors, the U.S. Bureau of Labor Statistics reported Friday.
Layoffs in the automotive and recreation vehicle industries have pushed up unemployment in Indiana, along with a construction slowdown spawned by flooding. More than 2,500 jobs have been lost this year because of motor coach and trailer company layoffs.
In nearby states, the August unemployment rate reached 8.9 percent in Michigan, 7.4 percent in Ohio and 7.3 percent in Illinois.
Indiana is suffering the effects of a national economic slowdown, according to Gov. Mitch Daniels' spokeswoman.
"We're being affected by what's happening with the national economy but holding up better than our neighbors," said Jane Jankowski.
Indiana's jobless rate already has surpassed the highs set during the downturns that began in 1991 and 2001. During those periods, regarded as mild recessions, the unemployment rate peaked at 6.3 percent in June 1992 and 5.4 percent in April 2002.
Jill Long Thompson, Democratic gubernatorial candidate, said Indiana's economy is in serious trouble.
In August, the number of people holding jobs totaled 3.04 million in Indiana. This was about 7,000 more statewide than in July, but the jobless rate still rose, driven by wider job losses and a larger labor force. The number of unemployed rose to 207,000 from 204,000 the month before.
The jobless rate is computed using a formula that divides the number of people unemployed by the number of people in the labor force. The labor force includes people employed, unemployed and looking for work.
August layoffs included 200 ice cream plant workers from Driggs Farms in Decatur and the first of what will total 412 employees to be laid off by Parsons, which is completing a cleanup of a nerve agent depot at Newport.
Layoffs pushed the jobless rate up slightly from 6.3 percent in July, which in turn had climbed 0.5 of a percentage point from June.
Indiana's unemployment rate hasn't been this high since 1987. Climbing out of the severe 1981-82 recession, the unemployment rate registered 6.4 percent in February 1987, on its way down from the modern peak, 12.8 percent in November 1982.
The job losses come at a time when businesses are also expanding, particularly in the Indianapolis metropolitan area.
Indianapolis Economic Development said expansions disclosed in August in Marion County will bring 690 new jobs, 986 retained jobs and $101.9 million in capital investment. Most of the new work is scheduled to appear within two years.
The average hourly wage for the new jobs created in August is $27.50, and the average hourly wage for the retained jobs is about $24.90, IED said, noting the expansions, all previously announced, include EnerDel, McGowan Insurance, Polaris Laboratories and Charles Schwab.
"Indianapolis is a city that's working," Mayor Greg Ballard said in a prepared statement. "Our successes keep piling higher, and these latest job numbers show that we are continuing to create employment while many big cities continue to struggle."
Across Indiana, businesses receiving incentives from the Indiana Economic Development Corp. have committed to creating more than 15,000 jobs this year, the agency said.
Call Star reporter Ted Evanoff at (317) 444-6019
Labels: Indiana, unemployment
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