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Unemployment rate continues to make history, but labor force flat

By Justin Hicks

Posted March 14, 2022

In raw numbers, more people found jobs in January and fewer people seeking jobs said they couldn’t find one. (Justin Hicks/IPB News)

Indiana continues to break state records for low unemployment as it fell to just 2.4 percent in January. But there’s a flip side to that statistic: the rate of Hoosiers 16 and older participating in the workforce stayed flat.

In raw numbers, more people found jobs in January and fewer people seeking jobs said they couldn’t find one. That’s good news and makes sense: anyone driving down the street can see there’s no shortage of companies hiring. Construction saw the biggest growth in employment as Indiana continued to experience the lowest unemployment rate in the Midwest.

But there’s another measure to pay attention to: the labor force participation rate. It compares the number of people working to the total number of people living in the state.

Indiana’s labor force participation has stayed flat at around 62 percent for a few months now while the U.S. rate has steadily grown. In the preliminary January report, the country surpassed the state for the first time in years.

Contact reporter Justin at jhicks@wvpe.org or follow him on Twitter at @Hicks_JustinM.