By K.O. Jackson, Kokomo Tribune business writer
kirven.jackson@kokomotribune.com
Although Kokomo's unemployment rate dropped in September to 11.6 percent - down from August's 12.3 percent - it still leaves the City of Firsts with the third-highest rate among Indiana cities with populations greater than 20,000.
Furthermore, according to the U.S. Bureau of Labor Statistics, Howard County's rate also fell in September to 11.9 percent, down from 12.6 in August.
Any decrease in the unemployment rate is "great, good news," said Jeb Conrad, president and CEO of the Greater Kokomo Economic Development Alliance.
But there is still another benchmark the county needs to reach, Conrad added.
"This is great. It is getting us closer to the state's average. Our goal is to surpass the state's rate," said Conrad, adding Indiana's unemployment rate fell to 9.6 percent in September, down from August's 9.9 percent jobless rate.
Since April, Indiana's unemployment rate had been higher than 10 percent until it dropped to August's rate.
"I think the major impact to this is the stabilization of employment at Chrysler and Delphi. People have disposable income and that impacts the supply chain and the service industries.
"It's great people are back to work. In the service industry, that allows them to maintain or add a small amount of staff. Another thing is unemployment benefits for some people have run out and they have either moved on or found new jobs. Stir all that together, and that would help drive down the unemployment rate."
Yet, having a high unemployment rate doesn't mean businesses aren't interested in Kokomo.
Even when Kokomo had the nation's highest unemployment rate this summer at 19 percent, Conrad said a client in the food and beverage industry still found Kokomo attractive as a possible new location for expanding his business.
"We showed up on his list because of our above-average [unemployment] rate and that we are an area known for the automotive industry and advanced manufacturing," said Conrad. "He wants to expand in the Midwest. He knew we had an available workforce. He knew we had skilled workers with strong training who are dependable and hungry. We are doing all the right things to keep the unemployment rate down."
Tipton County, which is included in Kokomo's metropolitan statistics, also experienced a drop in its unemployment rate in September.
Tipton's September rate was 10.3 percent, down from August's 11.1 percent.
"In the business community, I see confidence building because the banks have loosened up with their money allowing our businesses to go forward with their plans and expand," said Gayle Van Sessen, executive director of Tipton County Economic Development.
"With the banks being less tight with money, that creates a chain reaction by creating more jobs and allowing businesses to expand. We are happy where we are but we expect it to continue and get better."
September's unemployment drop was seen statewide in the creation of jobs. According to the U.S. Labor Department, by adding 4,400 jobs, Indiana had the nation's largest employment increase.