More return to jobs

Indiana’s unemployment rate fell to 9.6 percent in September, down 0.3 percentage points from August, as growth in the manufacturing and service sectors helped Indiana gain the most new jobs of any state.

Jackson County’s non-seasonally adjusted rate for September was reported at 10.1 percent. That’s down more than 1.5 percent from the year’s high of 11.7 percent reported for June. That 11.7 percent was also the highest for the county in many years.

Jim Plump, director of Jackson County Industrial Development Corp., said he hopes the area is on the mend economically.

“I think it’s one of those things where it’s started to rebound,” Plump said Wednesday. “I think in talking with a number of companies around Jackson County, many of them are busy and many of them are working overtime.

“All are looking ahead and hoping that 2011 is a good year,” he added. “Most companies have orders and feel very good through the end of the year, but beyond that they’re cautiously optimistic.”

“They’re not too sure about how 2010 will shape up,” Plump added.

Figures released Wednesday by the Bureau of Labor Statistics show that Indiana added about 4,400 jobs to record its first back-to-back monthly gains since late 2007.

Jackson County has seen some factory workers return to their jobs in recent months in Seymour, Columbus and elsewhere. Aisin USA in Seymour and Cummins Inc. of Columbus, for instance, have both been recalling workers.

The state’s seasonally adjusted jobless rate, which fell from 9.9 percent in August, reflected a regional trend. The Midwest was the nation’s only region where the unemployment rate declined.

In September, Indiana had the lowest unemployment rate among its neighboring states. Michigan’s jobless rate was 15.3 percent, Kentucky’s stood at 10.9 percent, Illinois’ jobless rate was 10.5 percent and Ohio’s was 10.1 percent.

But with 287,720 Indiana residents still out of work in September, it would be premature to declare that the state has seen the worst of the recession, said Matt Kinghorn, an economic research analyst with the Indiana Business Research Center at Indiana University.

Indiana must first see a few more months’ worth of job gains, he said.

“We need to see the trend play out a little longer before we can say that we’ve now turned the corner,” Kinghorn said. “These numbers are encouraging but they don’t necessarily say that we’re out of the woods yet.”

The center has predicted that the state’s unemployment rate could hit 11 percent before beginning a more permanent downward trend.

The 9.6 percent jobless rate puts Indiana below the national rate for the first time since October 2008. Last month, the nation’s unemployment rate stood at a 26-year high of 9.8 percent.

Jackson County’s unadjusted jobless rate was at 10.5 percent in August.

Indiana Department of Workforce Development Commissioner Teresa Voors said she is encouraged by September’s gains in manufacturing and professional and business service jobs.

Manufacturers hired about 3,000 workers last month, while the professional and business service sectors added about 2,900 jobs.