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Indiana unemployment rate holds steady at 3.5 percent for six consecutive months

By Brandon Smith

Posted March 22, 2024

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Indiana's unemployment rate has held steady for six consecutive months at 3.5 percent. (FILE PHOTO: Justin Hicks/IPB News)

Indiana state officials say the state’s overall economic outlook remains strong — even as the state’s labor force has shrunk four consecutive months.

Indiana’s unemployment rate in the most recent jobs report, released Friday, remained steady in February at 3.5 percent. That marks six consecutive months at that rate.

Yet the total labor force shrunk again, with the participation rate down to 62.8 percent, the lowest it’s been since December 2021. The labor force is a count of not just those with a job, but also those actively looking for one. It’s often cited as a measure of optimism in the economy.

Join the conversation and sign up for the Indiana Two-Way. Text "Indiana" to 765-275-1120. Your comments and questions in response to our weekly text help us find the answers you need on statewide issues.

State officials, however, point to the labor force participation rate among what they call the key demographic — 25- to 54-year-olds, where the rate is more than 80 percent.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.