For Gov. Mitch Daniels and challenger Jill Long Thompson, it’s a race about economics.

Daniels, an incumbent Republican who took office in 2005, has built his campaign around what he believes are successes in his first term. He touts an improved business climate that has led to record job creation.

Meantime, his opponent, Long Thompson, has rallied supporters by pointing out the number of jobs that have been lost this year. And she notes the lower salaries that Hoosiers make compared to the rest of the nation.

Libertarian Andy Horning, a candidate polling far lower than those in the major parties, believes it’s time to change the landscape of government.

Two economies, one state

When he talks about jobs, he’s looking at those created, not those that have been lost, Long Thompson said in a recent interview. At campaign appearances, she’s repeatedly said that 64,000 jobs have been lost this year alone. She also notes that Hoosiers make 87 cents on the dollar compared to the rest of the nation.

Daniels rebuts that much of the job loss has been a result of national concerns.

Businesses small and large, for example, are having trouble getting credit, he said.

Additionally, the RV industry in the northwestern part of the state has taken a major hit as a result of higher gas prices.

“That really accounts for most of the increases we’ve had in unemployment,” Daniels said in a telephone interview earlier this week.

The state’s unemployment rate for August, the latest month in which data was available, was 6.4 percent — near the national average of 6.1 percent, but nearly a percentage point higher than it was when Daniels took office.

However, it’s had low points as well — even coming in at 4.8 percent earlier this year.

He also argues that despite the losses this year, more jobs have been created under his administration than have been lost.