Kokomo jobless rate up to 17.4 percent

The city of Kokomo saw its unemployment numbers climb by 1,475 workers in the month of January.

According to figures released by Indiana Workforce Development, the jobless rate for Kokomo jumped from a revised December figure of 9.9 percent to 17.4 percent in January.

Jeb Conrad, director of the Greater Kokomo Economic Development Alliance (GKEDA), urged community members to remain optimistic.

"It is a little higher than I was hoping," Conrad said of the unemployment rate. "I thought it would be 12 or 13 percent; the increase is running on track with the rest of the nation."

The economic downturn is not affecting just one industry, but is touching companies across the board, he said.

"The new Alliance and the state of Indiana are working hard to bring short- and long-term benefits from the stimulus money," Conrad said. "We're looking at projects that will sustain opportunities."

The GKEDA strategy is to position the community to take advantage of the next opportunities to diversify the local economy.

"We have four teams; one is meeting with existing companies to find out if they have supply links that could be attracted to the area," he said.

Conrad said there is a silver lining to the high unemployment rates - Kokomo is now on the map.

"Companies know they can find employees at a reasonable rate and the community will do whatever is possible to support new investment," he said.

"There are some advantages; the hard part is keeping everybody's spirit up. This is a national issue that we're getting hit hard on."

Kokomo Mayor Greg Goodnight said the unemployment rate was higher than expected.

"We're tied to the auto industry, which is struggling," he said. "It makes it more of a challenge."

Goodnight said that Kokomo has affordable housing and a skilled work force that could attract new investments when the economy turns around.

"This is worldwide," he said of the economic downturn. "Everyone is faced with the same problem. We're more visible because of our automotive-industry base."

Congressman Joe Donnelly, D-2nd District, who's district has been hit hard by the downturn in the economy, said Friday he was upset to learn the unemployment rate continues to rise.

"North central Indiana has been hit especially hard and too many Hoosiers are without good paying jobs," Donnelly said. "Congress and the president are working to address our many economic challenges. While there is much work to be done, I am fully committed to doing whatever I can to get our economy back on track and people back to work."

The unemployment rate for Indiana went from a seasonably adjusted rate of 7.8 percent in revised figures for December to 9.2 percent in January.

State officials blamed the jobless numbers released Friday on several factors, including drops in manufacturing and a greater than normal loss of retail jobs after the holiday shopping season. Unemployment rates were also up in Ohio (8.8 percent) and Michigan (11.6 percent).