By DANIEL SUDDEATH
Daniel.Suddeath@newsandtribune.com
> SOUTHERN INDIANA —
Indiana lost 10,200 jobs from June to July, and more than 28,000 jobs in a year-to-year comparison, a report released Friday by the U.S. Bureau of Labor Statistics showed.
From July 2010 to July 2011, the loss of 28,300 jobs in Indiana accounted for the greatest amount of cuts in any state in the nation.
“State employment did not only cool, but entered a freezer,” said Uric Dufrene, Sanders chair of the Indiana University Southeast School of Business.
While Indiana’s unemployment rate barely rose in July, up to 8.5 percent from 8.3 percent in June, Dufrene said other numbers reveal “continued stresses in the state’s labor market.”
About 6,200 Hoosiers lost their jobs last month, and an additional 5,600 workers left the labor force.
“From a labor market perspective, a declining labor force and an increase in the number of unemployed represent the worst possible combination,” Dufrene said.
People leaving the labor force due to inability to find a job or for continued education affects the jobless rate, which is based on the pool of potential workers seeking employment. The unemployment rate could remain relatively unchanged despite job losses because potential workers dropped out of the labor force.
Manufacturing was the lone bright spot in the report, as the sector added 2,900 jobs from June to July. It was the only sector that didn’t endure losses from June to July in Indiana. Even the typically resilient education and health services sector shed 2,200 jobs.
“During and after the recession, this particular sector served as an offset for job losses in other sectors,” Dufrene said. “However, this month, it registered a noticeable decline.”
State officials focused on the Indiana unemployment rate Friday, touting it to continually be “significantly below the national average”, which was 9.1 percent last month.
“In comparison to our neighbors, Indiana is the only state below 9 percent,” said Mark W. Everson, commissioner of the Indiana Department of Workforce Development.
Kentucky’s jobless mark declined slightly from 9.6 percent in June to 9.5 percent in July, but Indiana’s southern neighbor actually added 6,200 people to its payroll last month. Yet the state’s total labor force also shrunk in July, down 11,600 workers from June.
In terms of Indiana rank, Clark and Floyd counties fared well in July.
Floyd County’s unemployment rate of 6.5 percent was tied for fourth lowest among Indiana counties and was unchanged from June to July. Clark County was not far behind, as it recorded a 7.1 percent rate, according to preliminary state figures.
Clark County’s jobless mark for June was 7 percent.
Statewide, Dufrene warned labor conditions could worsen in the coming months due to signs that manufacturing could be hitting a lull despite the gains Indiana enjoyed in the sector last month.
“While this particular number represents some favorable news for Indiana, the national indicators in manufacturing are mostly pointing to a decline,” Dufrene said. “So Indiana may not have manufacturing as a job creator over the next several months.”
