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Tuesday, April 23
The Indiana Daily Student

Labor growth causes unemployment rates to rise

Indiana’s unemployment rate remained higher than the national average for January, according to data from the Bureau of ?Labor Statistics.

This rate rose to 6 percent from 5.9 percent the month before, remaining ahead of the national average of 5.7 percent.

The national unemployment rate in January rose from 5.6 percent in December 2014, while the February unemployment rate was 5.5 percent nationally.

Monroe County’s unemployment rate jumped from 5.1 percent in December 2014 to 6.4 percent in ?January 2015.

Unlike the state and national level data, county level data are not seasonally adjusted, which means they do not account for fluctuations such as the weather or business cycles, which create higher ?unemployment rates.

Publishing of state and county unemployment data lags behind the release of national-level statistics.

Though the rise in the unemployment rate is troubling, especially considering the gap between Indiana and national level unemployment rates, this was mostly driven by the increase in the Indiana workforce, according to ?the report.

“Hoosier private sector job growth continued a remarkable trajectory in January,” said Steven J. Braun, commissioner of the Indiana Department of Workforce Development. “Over the past two years, Indiana has grown nearly 100,000 private sector jobs.”

The unemployment rate is determined by finding the number of people actively seeking work but unable find a job divided by the total number people seeking work, known as the labor force.

Indiana added 8,600 private sector jobs in January, according to the Department of Workforce Development, but because more people entered the labor force than jobs were created, the unemployment rate still rose.

The labor force rose by 14,249 in January, contributing to one of the largest increases in workers in the nation, according to the ?department.

This means the economy is not contracting but actually expanding, as more people are encouraged to enter the workforce by the lure of jobs and belief in their ability to find work.

An alternate measure of employment is the labor force participation rate, which measures the proportion of able-bodied adults who are part of the labor force.

Indiana’s labor force participation rate for January was 63.9 percent, an increase of 0.2 percent.

This is a full percentage point higher than the national average, according to the Department of Workforce Development.

Jobs gained in Indiana during January came from the Trade and Transportation, Utilities, Manufacturing, Private Education and Health Services, Business Services, and the Leisure and Hospitality sectors, according to a Department of Workforce Development employment report.

Offsetting the gains in these sectors, construction employment fell by almost 3,000.

The Financial Activities sector also lost jobs during ?the month.

“Clearly, the numbers indicate many Hoosiers are returning to work and thousands of others, encouraged by the availability of new jobs, are beginning to look for work again, which are both tangible, positive economic indicators,” ?Braun said.

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