Kokomo, Elkhart unemployment surge leads nation

Jobless rate in NWI lower than nation, state

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The unemployment rate in Northwest Indiana remains lower than that of the state and nation, as a strong construction market and demand for steel keep people working.

Northwest Indiana had a non-seasonally adjusted unemployment rate of 5.7 percent in July, with 19,200 people unable to find work, according to the U.S. Bureau of Labor Statistics.

That compares to the national non-seasonally adjusted unemployment rate of 6 percent and the Indiana rate of 6.1 percent.

The situation is a reversal of what has occurred in previous economic slowdowns, when the region's unemployment rate usually outpaced the national rate.

"I frankly have been surprised at the resiliency of the Northwest Indiana economy in the past two years," said Dewey Pearman, executive director of the Construction Advancement Foundation.

Industrial and commercial construction activity are both strong, Pearman said.

With consolidation of ownership in the steel industry and strong worldwide demand for steel products, companies are investing in new equipment and maintenance with a vengeance, Pearman said.

Other projects like the $3.8 billion Whiting BP refinery expansion and the $485 million Horseshoe Casino expansion have kept legions of skilled craftsman at work.

That doesn't mean Northwest Indiana is completely insulated from what's going on in the national economy.

The unemployment rate in Northwest Indiana stood at 4.5 percent one year ago. Since then, unemployment rolls here have increased by 4,100 people.

Other areas of Indiana are suffering truly devastating job losses.

The Elkhart area in north central Indiana and the Kokomo area in central Indiana led the nation in year-over-year increases in unemployment in July, according to the Bureau of Labor Statistics Metropolitan Area Employment and Unemployment report, released Wednesday.

The non-seasonally adjusted unemployment rate in the Elkhart area hit 9.3 percent, which was a 4.8 percent increase from one year ago, according to the U.S. Bureau of Labor Statistics.

The non-seasonally adjusted unemployment rate in the Kokomo area hit 9.2 percent, which was a 4.4 percent increase from one year ago.

Elkhart is home to recreational vehicle manufacturers that have been hard hit by declining sales as people shy away from buying the big, gas-guzzling vehicles. Kokomo is an auto manufacturing center hard hit by the troubles of American auto makers.

"It's related to gas prices and just the global slowdown in autos has really impacted the auto industry here," said Gary Abell, a spokesman for the Indiana Department of Workforce Development.

The state of Indiana ranked third in the nation for overall job loss in July, with Hoosier employers shedding 16,500 jobs, according to a Bureau of Labor Statistics report released earlier this month.

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