The Republic staff and wire reports
Indiana gained 4,100 jobs in August, the nation's fifth-largest monthly increase, after posting sharp losses in July, the federal Bureau of Labor Statistics said Friday.
Bartholomew County lost 274 jobs compared to July, and the unemployment rate jumped from 4.8 percent to 5.3 percent, the highest since February 2005.
The state's August's gains followed a loss of 17,600 jobs in July, painting a mixed economic picture that has become a top issue in the race between Gov. Mitch Daniels and Democratic challenger Jill Long Thompson.
Despite the increase, however, the state's seasonally adjusted unemployment rate actually rose slightly.
Long Thompson's campaign seized on the unemployment increase to bolster its claim that the state's economy is "seriously troubled," while Daniels' campaign touted the job creation number as a sign the governor's efforts to improve the economy are paying off.
Indiana trailed only three states in job-creation: Louisiana gained 9,400 jobs, Texas saw 6,800 new jobs and Nebraska reported 4,900 new jobs. The District of Columbia also was slightly ahead of Indiana, gaining 4,300 new jobs.
At the same time, the state's unemployment rate rose to 6.4 percent in August, up from 6.3 percent in July - and nearly two percentage points higher than August 2007's 4.5 percent rate.
Carol Rogers, deputy director of the Indiana Business Research Center, said the increase from July to August isn't statistically significant in a state jobs picture that is complex and sometimes confusing.
Rogers said Indiana's unemployment rate is being driven not just by plant closures or layoffs, but also by more people entering the jobs market - from new high school or college graduates to retirees seeking work to cope with higher gas and food prices.
The 4,100 new jobs created in August don't necessarily signal an economic upswing, she cautioned. Many of those jobs came as the state's manufacturers called back workers following summer plant shutdowns used to retool equipment for new production models, she said.
Bartholomew County employed 37,386 in August, down 274 from July, but up 208 from August 2007. The unemployment rate, at 5.3 percent in August, was up from 3.4 percent a year earlier.
The number of people looking for jobs in August was 2,092, up 198 from July, and 784 from August 2007.