Ind. Unemployment Springs Back Into Double Digits

INDIANAPOLIS -- As state officials expected, Indiana's unemployment rate crept back up into the double digits in May as the result of trouble in the auto industry.

The Department of Workforce Development released new numbers on Friday listing the state's seasonally-adjusted jobless rate at 10.6 percent, a jump of 0.7 percent from April.

The agency said the month-to-month unemployment gain mirrors increases in Illinois and Kentucky, while Ohio reported a 0.6 percent increase from the previous month and Michigan increased 1.2 percent from April.

"As expected, extended furloughs and layoffs in the U.S. auto industry greatly affected Indiana’s employment picture in May,” said DWD Commissioner Teresa Voors. "Indiana may see the ripple effect over the next few months as suppliers, dealerships and other service providers adjust to the new business models of the domestic auto companies."

Indiana still has one of the lowest unemployment rates in the Midwest, behind Ohio and Michigan, which leads the nation in unemployment at 14.1 percent.

The national seasonally-adjusted unemployment rate in May was 9.4 percent.

Indiana's seasonally-adjusted unemployment rate peaked at 12.8 percent in November 1982. Indiana’s unemployment rate stood at 5.3 percent in May 2008.