Report: Decrease due to shrinking workforce, not new jobs

Staff and wire reports

INDIANAPOLIS

The state Department of Workforce Development says Indiana’s unemployment rate was 8.2 percent in September, the first drop in five months even though the state lost 6,000 private-sector jobs.

Jackson County’s rate, however, was 6.3 percent in September, down 0.7 percentage point from the revised August rate of 7.0 percent.

According to the report, the decrease reflects a smaller workforce instead of new jobs.

There were 171 fewer people in the workforce in September (21,260) than in August (21,431). The number of unemployed in Jackson County was 165 less in September (1,343) than in August (1,508).

There also were six fewer people employed in the county in September (19,917) than in August (19,923).

The state’s 8.2 percent rate matches the unemployment rate for Indiana in July and is a full percentage point lower than it was in September 2011.

Workforce Development Commissioner Scott Sanders says he’s encouraged to see Indiana recorded its first increase in the labor force in seven months. The department said the 2,000 people added to the workforce is a sign more Indiana residents may be encouraged by strong job growth and are again looking for work.

Sanders says unemployment insurance claims are at their lowest level since 2000.