ELKHART -- The city of Elkhart registered the fifth-highest jobless rate among Indiana cities in March, capping a rise in unemployment of more than a full percentage point from March 2007.
Elkhart's rate was 7.3 percent in March, according to the Indiana Department of Workforce Development. Hoosier cities with higher unemployment were Anderson at 7.7 percent, East Chicago at 8.0 percent, Kokomo at 8.2 percent and Marion at 9.2 percent.
The jobless rate in the city of Goshen was 5.5 percent and in the city of South Bend, was 6.6 percent.
"Any time the unemployment creeps up to that number, it's cause for concern," said Kyle Hannon, vice president of public policy at the Greater Elkhart Chamber of Commerce. "Unemployment is always unfortunate and job loss is always tragic but I think there is always hope."
This is not the highest March unemployment the City with a Heart has seen in recent history. In March 2002, the rate hit 8.9 percent and by March 2004 was still 7.6 percent.
The state's figure estimates the unemployment among Elkhart residents, regardless of where they work, said Joe DiLaura, spokesman for the DWD. A survey of households, the number of unemployment claims and historical data are examined to determine the jobless rate.
Indiana had an unemployment rate of 5.6 percent in March, higher than the national rate of 5.2 percent. Elkhart County's rate was 5.8 percent. LaGrange County's also was 5.8 percent while St. Joseph County was slightly higher at 5.9 percent and Kosciusko County was lower at 5.6 percent.
Analysts for the DWD believe the rise in the state's unemployment is a combination of the strike at American Axle & Automotive, which has shut down General Motors plants and suppliers in Indiana, along with the slow start to the construction season because of the wet weather, DiLaura said. Locally, the rate is being driven higher by the downturn in the recreational vehicle industry.
Forge Industrial Staffing, with offices in Elkhart, Middlebury and Goshen, has the same number of workers placed as one year ago but the number of applicants looking for work has increased substantially, said Lukus Handshoe, manager of operations.
"They are looking for anything they can get," Handshoe said, adding that many of these workers are used to making $25 to $30 an hour and jobs at that pay level are no longer available.
In Goshen, the unemployment is not as high as Elkhart's but the rate is climbing and the business community is "beginning to be a little concerned," said David Daugherty, president of the Goshen Chamber of Commerce.
Although Goshen has lower jobless rate than even the state, Daugherty noted residents are working fewer hours and many are having to cope with their plants temporarily shutting down. At the same time that paychecks are shrinking, gasoline prices and grocery bills are climbing.
Consequently, the situation is "real tough" even for those with jobs, Daugherty said.