State unemployment rate drops to 5-year low

Things are so busy these days at F.A. Wilhelm Construction Co. in Indianapolis that nobody needs to look at a government report to see the economy is rebounding.

With a bulging portfolio of business, from a student center at Marian University to a parking garage near the Downtown Canal, the company is steadily hiring, trying to stay on top of $490 million worth of projects — up about 12 percent from last year.

“Things are good, and next year is looking very strong too,” said Tim Barnett, Wilhem’s vice president. “We’re keeping very busy.”

So is Indiana. The state’s unemployment rate dropped to 7.5 percent for October, marking its lowest level since late 2008, during the depths of the recession.

Figures released Friday by the state Department of Workforce Development show Indiana’s jobless rate fell three-tenths of a percentage point for last month. It is now nearly a point lower than the 8.4 percent rate Indiana had in June and July.

Indiana’s jobless rate is slightly higher than the national rate of 7.3 percent. But the gap has been closing since spring, when Indiana’s rate was more than a full percentage point higher than the national rate.

“The trend is very strong,” said Aaron Smith, an economist at Moody’s Analytics in West Chester, Pa., who tracks the Midwest economy. “This is about as strong as it’s been since the recovery began.”

Even so, the new report shows nearly 223,000 people were looking for jobs last month in Indiana. Gov. Mike Pence said in a statement that the employment report showed a good trend for the state.

“Despite today’s encouraging news, there are still far too many Hoosiers struggling in this economy, and we cannot afford to let up in our effort to make Indiana even more attractive for investment and jobs,” Pence said.

The largest employment gains for Indiana during October came in the manufacturing, construction and private educational and health-services sectors, according to the state report.

So is it time to go looking for a manufacturing job, after years of downturn?

“Absolutely,” said Tim Rushenberg, vice president of government affairs for the Indiana Manufacturers Association. “Things are going well, and manufacturing jobs are the good-paying jobs.”

Manufacturing jobs in Indiana pay an average of $71,000 a year in wages and benefits, compared with $40,000 in average wages overall, he said.

The best performing parts of the manufacturing sector are motor vehicles, parts manufacturing and fabricated metals, he said. Textiles and apparel are doing less well.

Indiana’s unemployment rate peaked at 10.8 percent in mid-2009, with nearly 350,000 people then looking for jobs. Indiana joblessness declined below 9 percent in late 2010, but had stubbornly not fallen much more until the last few months.

The Associated Press contributed to this report. Call Star reporter John Russell at (317) 444-6283 and follow him on Twitter at johnrussell99