Unemployment in Bartholomew County increased in July, rising to its highest level for that month in four years, according to figures released by the Indiana Department of Workforce Development.
The jobless rate in Bartholomew County was 4.3% in July, up from 3% in July 2023 and the highest in July since 2020, when unemployment stood at 8% as the local economy was reeling from the initial economic shock caused by the COVID-19 pandemic, the figures show.
U.S. unemployment was a seasonally adjusted 4.3% last month, up from 3.5% in July 2023. In Indiana, the jobless rate was a seasonally adjusted 4%, up from 3.4% a year earlier. Seasonally adjusted figures were not available on the county level.
In Jackson County, unemployment increased from 3.1% in July 2023 to 4.1% last month, while the jobless rate in Jennings County rose from 3.3% to 4.3% over the same period. Last month, unemployment in those two counties also were at four-year highs for the month of July.
The update from state officials came just days after the federal government reported that the number of Americans applying for unemployment benefits fell the week ending Aug. 10, another sign that the job market remains resilient in the face of high interest rates, The Associated Press reported.
Jobless claims dropped by 7,000 to 227,000 the week ending Aug. 10, the Labor Department reported last week. The four-week average of claims, which smooths out week-to-week ups and downs, fell by 4,500 to 236,500.
In the week that ended Aug. 3, 1.86 million Americans were collecting jobless benefits, down by 7,000 from the week before.
Locally, 21 workers in Bartholomew County filed for jobless benefits the week ending Aug. 10, up from 14 the week before, according to the Indiana Department of Workforce Development. A total of 140 local workers were drawing jobless benefits the week ending Aug. 3, down from 155 the previous week, according to the most recent figures available.
Weekly filings for unemployment benefits, which are a proxy for layoffs, remain low by historic standards, according to wire reports. From January through May, claims averaged a rock-bottom 213,000 a week. But they started rising in May, hitting 250,000 in late July and adding to evidence that high interest rates are taking a toll on the U.S. job market.
But claims have since fallen two straight weeks, dispelling worries that the job market was deteriorating rapidly rather than just slowing.
The Federal Reserve, fighting inflation that hit a four-decade just over two years ago, raised its benchmark interest rate 11 times in 2022 and 2023, taking it to a 23-year high. Inflation has come down steadily — from 9.1% in June 2022 to a three-year low of 2.9% last month, according to wire reports. Despite higher borrowing costs, the economy and hiring kept cruising along, defying widespread fears that the United States would sink into recession.
The economy is weighing heavily on voters as they prepare for November’s presidential election, according to the AP. Despite a solid job market and decelerating inflation, Americans are still exasperated that consumer prices are 19% higher than they were before inflation started to take off in 2021. Many blame President Joe Biden, though it’s unclear whether they will hold Vice President Kamala Harris responsible as she seeks the presidency.
As signs of an economic slowdown accumulate and inflation continues to drift down toward its 2% target, the Fed is expected to start cutting rates at its next meeting in September
