Bartholomew County’s unemployment rate increased in July but was still among the lowest in Indiana as the U.S. labor continues to flex its muscle in the face of high interest rates and inflation.
The jobless rate in Bartholomew County stood at 3.2% in July, up from 2.7% in July 2022 and tied for the fourth lowest unemployment rate in the state, according to figures released Monday by the Indiana Department of Workforce Development.
U.S. unemployment was 3.5% in July, unchanged from July 2022. Statewide, unemployment in Indiana was 3.3%, up from 3% from a year earlier.
In Jackson County, the jobless rate stood at 3.4% last month, up from 3.2% in July 2022, while unemployment in Jennings County was 3.6%, unchanged from a year earlier.
The update from state officials comes as the job market cooled over the summer but remained strong enough to defy predictions that higher interest rates would tip the United States into recession, The Associated Press reported.
U.S. employers added 187,000 jobs last month, fewer than expected, according to wire reports. But the unemployment rate dipped to 3.5% in a sign that the job market remains resilient.
Hiring was up from 185,000 in June, a figure that the Labor Department revised down from an originally reported 209,000. Economists had expected to see 200,000 new jobs in July.
Still last month’s hiring was solid, considering that the Federal Reserve has raised its benchmark interest 11 times since March 2022, according to wire reports. And the Fed’s inflation fighters will welcome news that more Americans entered the job market last month, easing pressure on employers to raise wages to attract and keep staff.
At the same time, applications for jobless claims fell again the week ending Aug. 12 and remain at healthy levels despite high interest rates and inflation.
Applications for unemployment benefits dropped by 11,000 to 239,000 for the week ending Aug. 12, down from 250,000 the previous week, the Labor Department reported this past Thursday.
The four-week moving average of claims, which softens some of the week-to-week volatility, rose by 2,750 to 234,250.
Jobless claim applications are seen as a proxy for the number of layoffs in a given week.
Locally, 22 Bartholomew County workers filed initial jobless claims the week ending Aug. 12, down from 33 the previous week, according to the Indiana Department of Workforce Development.
A total of 20 workers in the county were receiving unemployment benefits the week ending Aug. 5, down from 106 the week before, according to the most updated figures available.
Outside of a flurry of layoffs in the technology sector early this year, companies have mostly been retaining workers, according to the AP.
Many businesses struggled to replenish their workforces after cutting jobs during the pandemic, and much of the ongoing hiring likely reflects efforts by firms to catch up to elevated levels of consumer demand that have emerged since the pandemic recession.
While the manufacturing, warehousing, and retail industries have slowed their hiring in recent months, they aren’t yet cutting jobs in large numbers, according to wire reports. Economists say that given the difficulties in finding workers during the past two years, businesses will likely hold onto them as long as possible, even if the economy weakens.
