Indiana sees significant drop in unemployment

From July to August, Indiana experienced the largest decline in unemployment in the nation, according to new data released from the Bureau of Labor Statistics.

The unemployment rate in Indiana dropped to 9.9 percent, down from 10.6 percent in July. Only three other states reported significant drops in jobless rates: Colorado, Kansas and Virginia.

According to the Bureau, unemployment rates in most states did not change significantly, and this month’s reported drop in unemployment could be an anomaly.
Surveys from individual households showed 24,000 fewer unemployed Hoosiers, but a different survey of business payrolls showed 21,000 fewer jobs, according to data from the Indiana Department of Workforce Development.

Usually, a decrease in jobs is accompanied by an increase in unemployment.

Marc Lotter, a spokesman for the Department, said the statewide drop in unemployment could be the beginning of a positive trend, but because of the apparent contradiction in this month’s data, the department will have to wait and see if the trend continues.

“Decreases in unemployment are always welcome news,” the Department’s Commissioner, Theresa Voors, said in a press release. “We hope it’s a trend, but data from two key factors used to determine employment levels – surveys of individual households and business payroll – appear to contradict each other. The next few months should provide evidence of a trend or a one-month survey anomaly.”

Jeremy Sowders, vice president of business development at the Bloomington Economic Development Council, agreed that this month’s numbers were strange and that next month’s figures will be more telling.

Among the 92 counties in Indiana, Monroe County had the second-lowest unemployment rate, 6.1 percent, surpassed only by Daviess County.

This is far below the statewide unemployment rate of 9.9 percent and the national rate of 9.7 percent.

In Marion County, which includes Indianapolis, 8.9 percent of people are unemployed.

Exactly a year ago, unemployment in Indiana was at 6 percent, and before the recession began in December 2007, it was at 4.6 percent.

Sowders said Bloomington’s rate has remained lower than other counties because of the burgeoning life sciences industry, the University and other stable employers that have not been affected as harshly by the recession.

Last week, Federal Reserve Chairman Ben Bernanke said that, from a technical perspective, the recession is likely over, but he cautioned that unemployment rates will probably continue to rise.

“I think we will see this reflected almost immediately in tiny increments,” Sowders said. “It looks like the way the economy is going to move forward is very slowly over a long period of time.”