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Indiana's unemployment rate improves for fourth month, drops below national average

By Timoria Cunningham

Posted May 21, 2025

help wanted sign

Indiana's unemployment rate — which measures the percentage of people who are without a job but are actively looking for work — stood at 3.9 percent in April, while the national rate was 4.2 percent. (FILE PHOTO: Justin Hicks / IPB News)

Indiana’s unemployment rate has steadily improved over the last four months, according to the latest preliminary labor data. The state's unemployment rate fell below 4 percent for the first time since June 2024.

Indiana's unemployment rate, which measures the percentage of people who are without a job but are actively looking for work, stood at 3.9 percent in April, while the national rate was 4.2 percent.

Indiana’s unemployment rate is down half a percent from January — dropping it below the national average for the first time since September 2024.

In the month of April, Indiana’s labor force participation rate stood at 63.7 percent, slightly higher than the national average of 62.6 percent.

READ MORE: What does Indiana's monthly employment report measure? Here's what you should know

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.

Each monthly employment report uses the previous month’s preliminary data from the federal Bureau of Labor Statistics, which sometimes revises the monthly numbers years later.

Even though much of the data in the reports are estimates, they’re often the best available numbers.

Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org.

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