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Indiana's labor force shrinks in March, as unemployment rate holds steady

By Brandon Smith

Posted April 19, 2024

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Indiana tax revenues are about 1 percent above the budget plan through three quarters of the 2024 fiscal year. (FILE PHOTO: Justin Hicks/IPB News)

Indiana’s labor force has declined five consecutive months, the longest such streak in more than two years.

That’s as the state’s unemployment rate has been unchanged for seven months in a row.

Indiana’s unemployment rate was 3.5 percent in March, the same rate it’s been since September and lower than the national rate.

But the state’s labor force continues to shrink. 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. And that measure has declined by about 28,000 people since October.

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That five month change is driven almost entirely by those who no longer have jobs, to the tune of more than 29,000 people. The number of people out of work but actively seeking employment over that period is up by just 235.

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