Indiana’s unemployment rate declined last month to its lowest level since the pandemic forced businesses earlier this year to close and lay off workers at levels not seen since the Great Depression.
In October, the state’s unemployment rate was 5%, down from 6.3% in September and 16.9% in April, according to figures released Friday by the Indiana Department of Workforce Compensation.
The national unemployment rate in October was 6.9%, down from 7.9%.
In Bartholomew County, 136 workers filed initial unemployment claims last week, up slightly from 123 the week before and 107 two weeks ago, according to state figures.
A total of 605 Bartholomew County workers received some form of jobless aid the week ending Nov. 7, continuing a downward trend since early May.
County-level unemployment rates for October are expected to be released Monday.
The release of October’s unemployment rate came as the number of Americans seeking unemployment aid rose last week to 742,000, The Associated Press reported.
It was the first increase in five weeks and a sign that the resurgent viral outbreak is likely slowing the economy and forcing more companies to cut jobs, according to wire reports.
The worsening pandemic and the arrival of cold weather could accelerate layoffs in the weeks ahead. Of the roughly 20 million Americans now receiving some form of unemployment benefits, about half will lose those benefits when two federal programs expire at the end of the year.
“The risk of further job and income loss is high now from business operations being curtailed,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, a forecasting firm, to the AP. “Also, expiration of federal benefits later this year will put renewed strain on household incomes. Overall, the labor market remains under stress.”
The economy’s modest recovery is increasingly at risk, with newly confirmed daily infections in the United States having exploded 80% over the past two weeks to the highest levels on record, according to wire reports.
More state and local officials, including in Bartholomew County, are issuing mask mandates, limiting the size of gatherings, restricting restaurant dining, reducing hours and capacity for gyms, bars, stores and other businesses.
Evidence is emerging that consumers are losing confidence in the economic outlook and pulling back on shopping, eating out and other activities.
Spending on 30 million credit and debit cards tracked by JPMorgan Chase fell 7.4% earlier this month compared with a year ago, and retail sales rose just 0.3% in October, the smallest gain since stores reopened in April after a nationwide shutdown in March, according to wire reports
The weak gain suggests that consumers began pulling back on spending even before many new restrictions on businesses were imposed.
