By Brenda Showalter, The Republic
bshowalter@therepublic.com
Indiana's unemployment rate of 6.4 percent is the highest level since 1987 and has been climbing since April.
The state's highest number in the last 30 years occurred in November 1982 when it reached 12.8 percent.
Bartholomew County's rate jumped from 4.8 percent in July to 5.3 percent in August but remains below the state and national averages.
Dave Blount of Columbus is one of those workers hit by the sluggish economy and housing crunch.
He's worked in jobs involving the construction and sale of kitchen and bathroom cabinets for 30 years.
Last week, he was at the local WorkOne office applying for unemployment benefits after being laid off.
"I'm not upset about it. My boss had to do what he had to do," Blount said.
He hopes that his experience and skills in design, purchasing, sales and customer service will help him land a new position.
Blount already had one interview lined up and was hoping to be back on the job soon.
Upward trend
Gary Abell, spokesman for Indiana Department of Workforce Development, said Bartholomew County generally is a strong area for employment.
Recent drops could be attributed to a slowdown in the manufacturing sector and reflect a statewide trend of a weaker economy, he said.
"Statewide, tourism and hospitality industries showed some softness that we're attributing to higher gas prices," Abell said.
Indiana's unemployment rate also has climbed due to reductions in the work force at recreational vehicle manufacturers in northern Indiana.
"It's been a combination of factors," said Mayor Fred Armstrong about the local upswing in unemployment.
He noted that several local businesses are tied to the slumping automotive industry.
"The good news is we're in better shape than a lot of communities. The bad news is I think it will get worse before it gets better."
Armstrong said recent unsettling financial news from Wall Street concerns consumers, who are spending less at retail stores, which might have to lay off workers.
On the positive side, Armstrong added, Cummins Inc. and Columbus Regional Hospital did not lay off employees after the flood.
Local unemployment numbers would have skyrocketed had two of the county's largest employers chose that option.
In a recent Manpower survey of Columbus-area employers, 17 percent said they planned to reduce staff during the fourth quarter.
In perspective
Michael Hicks, director of Ball State University's Bureau of Business Research Center, said Indiana's current 6.4 unemployment rate is the highest in years but still below the 10 to 12 percent range in 1982 and 1983.
He added that the 50-year unemployment average for the country is 5.95 percent.
During the Great Depression of the 1930s, the rate peaked at 25 percent but included only white males.
Hicks believes the economy is in a recession, but he did not anticipate a severe one.
Mild recessions also occurred in 2001 after the Sept. 11 terrorist attacks and in 1990 following Operation Desert Storm.
Hicks said the recessions did not generate as much news coverage because of other dominant news events at the time.
How the country and economy will respond to current financial struggles is unknown, but the uncertainty will slow business investments that could increase the unemployment rate.
Hicks said it's been about 25 years since the country faced such troubling financial times.
Hicks and Abell said a good sign for Indiana, however, is that it is faring better than neighboring states.
Indiana's 6.4 percent unemployment rate for August compares to 6.8 percent in Kentucky, 7.3 in Illinois, 7.4 in Ohio and 8.9 in Michigan.
"We're not where we want to be, but maybe we're at our high mark," Abell said, noting that the state's rate increased just 0.1 percentage points from July to August.
Hicks said he wouldn't be too concerned about the state's unemployment rate until it climbed beyond 7 percent.
State officials also are monitoring the state's Unemployment Trust Fund, which supplies money for unemployment benefits.
Abell said those applying for benefits should not be concerned about receiving money they are due, but legislators will have to look at the trust fund in the upcoming legislative session.
"Right now," Abell said, "we're paying out more in benefits than we're taking in."