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Indiana unemployment rate improves for second consecutive month

By Brandon Smith

Posted April 18, 2025

A sign reads "Resume Writing Interview Workshops Hospitality"

Indiana's unemployment rate in March 2025 was 4.1 percent, the lowest rate since May 2024. (FILE PHOTO: Justin Hicks/IPB News)

Indiana’s unemployment rate is at its lowest level in nearly a year, improving to 4.1 percent last month.

More than 9,000 fewer Hoosiers reported being unemployed in March — though some of that drop was people leaving the labor force.

The manufacturing and leisure and hospitality sectors led job gains in Indiana last month. And more than 16,000 Hoosiers have reportedly found work in the last three months.

But the state’s labor force also shrank in March, the third decline in just five months. The labor force is a measure of people with jobs and those actively looking for one — which means the reduction is people without a job and no longer looking. The labor force is often viewed as a sign of optimism — or pessimism — in the economy.

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Still, Indiana’s labor force participation rate remains well above the national rate.

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