State unemployment below average; Bloomington fares particularly well

Despite job losses in every major industrial category in Indiana, state unemployment is nearly 1 percent lower than the national average for the month of August, according to the Indiana Department of Workforce Development. \nThe unemployment rate was calculated by excluding agriculture and self-employed workers.\nBloomington and Monroe County did particularly well in comparison to other regions of the state, keeping an unemployment rate of 3.7 percent. There were 2,050 unemployed people in the Bloomington area for the month of August, an increase of about 100 people from July. \nBloomington Mayor John Fernandez attributed Bloomington's lower unemployment rate to a "stable economic base" that he said he feels has been built up by "encouraging new business start-ups" and "investing in infrastructure and keeping tax rates down."\nFernandez said it is important to stay focused on the recent manufacturing cuts. He said he sees some promising signs for Bloomington's economic future, such as GE's recent promise to invest $50 million in Bloomington's plant.\nThe state's unemployment rate for August was 4 percent, compared to a national rate of 4.9 percent. \nBut the news is not all good for Indiana's labor force. The state's August unemployment rate is up 1 percent from August last year. During the month of August, an estimated 125,900 Hoosiers were unemployed. Indiana's total labor force, the number of people 16 and older who are able to work, was estimated at more than 3.1 million for August 2001.\nThe monthly survey of 7,500 employers, which is used to calculate the unemployment average reports payroll employment at about 3 million, down 35,900 from last year. \nManufacturing jobs were among the hardest hit; they are down 30,700 from last August. Motor vehicle manufacturing, which accounts for 94,500 jobs in Indiana, has been hit particularly hard, losing 9,000 jobs in the past year. \nIndiana's construction industry lost 1,800 jobs during the months of July and August.\nService sector employment, which includes business and computer services, reported an increase of 5,300 jobs from last year. \nTom McKenna, Executive Director of the Indiana Department of Commerce, said he feels that it is important to focus on the positive aspects of the report. \nHe points out that "any loss of jobs can be attributed to a general slowdown in the economy." \nDuring the current economic downturn, Indiana has managed to keep its unemployment rate lower than most of its neighboring states. McKenna said he feels that this success is because of a "diverse economy." He said that Indiana's economy is strong because it is not "tied heavily to dot-com businesses or dependent any one industry in particular."\nDownstate Lawrence County had the highest unemployment rate in the state at 9.7 percent.