Indy's unemployment rate rises
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Indianapolis' unemployment rate rose to 3.5% in June, continuing a slow climb that began at the start of 2024 and mirrors the national unemployment situation.
Why it matters: The U.S. unemployment rate crossed 4% for the first time since June 2021, adding to fears that the labor market — the bedrock of the economy — is slowing down and the economy is at risk of a recession.
By the numbers: The Indy metro area's unemployment rate fell from a recent high of 4.5% in the aftermath of the pandemic at the start of 2021 until bottoming out at 2.7% at the beginning of 2022.
- The rate hovered around 3% for most of 2023, but has risen consistently since the start of spring.
- June marks the first time Indy's unemployment rate has risen for four consecutive months since January 2021, per Bureau of Labor Statistics figures.
Zoom in: Even those working in Indy are having trouble making ends meet. The Ludwig Institute for Shared Economic Prosperity's True Rate of Unemployment study found that one and five local residents did not earn a living wage in 2023.
Between the lines: The true unemployment rate tends to track — but also be much higher than — the Bureau of Labor Statistics unemployment rate, which excludes anybody who has stopped looking for work and those discouraged by a lack of jobs or the demands of child care.
- The BLS rate also excludes people who might be earning only a few dollars a week; LISEP, by contrast, counts anybody earning less than $25,000 per year as unemployed.
Zoom out: Federal Reserve chair Jerome Powell last week hinted that the central bank could cut interest rates next month — a move that would reduce constraints on the economy.
Go deeper: The economic slowdown that wasn't