Mike Wolanin | The Republic The exterior of The Commons with the Bartholomew County Courthouse pictured in the background in downtown Columbus, Ind., Tuesday, Jan. 24, 2017.
By Andy East | The Republic
and
Whitney Downard | Indiana Capital Chronicle
For The Republic
in nearly all of Indiana’s counties — including Bartholomew County — make less money than the national average wage, with Hoosier workers earning just 83.3 cents for each dollar earned by their national counterparts, according to a recent analysis of employment data from the U.S. Bureau of Labor Statistics.
Rachel Blakeman, the director of the Community Research Institute of Purdue University Fort Wayne, analyzed the federal agency annual wage data and found that 91 of Indiana’s 92 counties made less than the $70,343 national average, The Indiana Capital Chronicle reported.
“In short, we’re a state that works but we’re a state that works for less,” Blakeman told The Indiana Capital Chronicle.
Marion County was the only county to buck the trend last year, coming in at $70,834 — just $491 more than the national average. But Blakeman noted the data only considers county of employment, not county of residence, meaning that commuters in surrounding counties boost Marion County’s wages.
Bartholomew County had the second highest wages in the state at $67,443, according to a copy of the analysis provided by Blakeman.
The statewide average was $58,604, ranging from Marion County’s high to a low of $36,559 in Union County.
Wages in neighboring counties such as Jackson and Jennings counties were considerably lower than the state and national averages. In 2022, average wages in Jackson County were $51,590 — 31st highest in the state — and average wages in Jennings County were $46,910 — 61st in the state.
However, many counties did have faster wage growth than the national average — and several counties had faster job growth — but not enough to catch up.
The data does come with caveats, lacking demographic information and not distinguishing between part-time, full-time or seasonal employment.
“When I started studying this data a number of years ago, we would have like four or five counties that were above the national average, and now only one county has average wages above the national average,” Blakeman told The Republic. “And at the rate that we are going, I anticipate that Marion County will lose that spot at some point in the near future.”
The trends
While Bartholomew County workers earned less than their national counterparts last year, it hasn’t always been that way.
Annual wages in Bartholomew County were higher than the national average as recent as 2019, according to wage data from the U.S. Bureau of Labor Statistics.
In 2019, Bartholomew County workers made $59,272, while the national average was $59,202, the wage data shows. In 2018, Bartholomew County workers made $58,050, compared to the national average of $57,198.
But since 2019, average U.S. wages have gone up by 18.8%, while local wages increased about 13.8%.
Blakeman said, referring to the state as a whole, that Indiana has lost its competitive advantage in wages largely due to its emphasis on manufacturing production jobs, which have become increasingly automated over the years, warehousing and training students for skilled trades instead of completing bachelor’s degrees.
“When I look back at wages back in the 1990s, we had much more nationally competitive wages, and we’ve lost any sort of competitive advantage in terms of just straight dollars in your paycheck. …The state of Indiana has made a substantial play in manufacturing, warehousing and an emphasis on getting students trained for the skilled trades. We don’t have a vibrant discussion about engaging enough students in completing bachelor’s degrees.”
“Then it kind of becomes a chicken-and-an-egg scenario and a self-fulfilling prophecy,” Blakeman added. “When you don’t have people with bachelor’s degrees, jobs for bachelor’s degrees don’t happen. And then it becomes this vicious cycle.”
Response from IEDC
The Indiana Economic Development Corporation (IEDC) declined an interview, but sent a statement concerning wage growth in recent years, saying the organization was “laser focused on increasing wages,” according to the Indiana Capital Chronicle.
The quasi-public organization regularly touts anticipated company expansions throughout the state, including anticipated wages — though some don’t pan out and don’t deliver the promised high-paying jobs.
In an annual report published in January, the IEDC said it had secured more than 24,000 new jobs with an average hourly wage of $34.71 — an IEDC record for “expected” wages.
Blakeman said that smaller cities like Columbus have several challenges when attracting talent, including that many of the higher-wage jobs in Indiana that require bachelor’s degrees are located in larger cities such as Indianapolis, Fort Wayne and Evansville.
“It’s both a wage function — how much am I going to get paid — and then what is my lifestyle going to be?” Blakeman said. “And smaller communities have a challenge on competing with that, of competing with larger cities because there is the expectation of a certain lifestyle and also the trailing spouse or partner (who may not find job opportunities in smaller communities).”
“There’s no easy one-size-fits-all solution to the problem, but if we don’t know there’s a problem, no one’s addressing it,” Blakeman added later in the interview. “Bartholomew County is well positioned within the state, but there is no guarantee that advantage will continue indefinitely.”
The Indiana Capital Chronicle covers the state legislature and state government. To learn more, visit indianacapitalchronicle.com.
Andy East | The Republic
