Uric Dufrene-1

Uric Dufrene, Sanders Chair of Business at IUS

SOUTHERN INDIANA — November was one of the strongest months in payroll growth for Indiana in 2021.

According to a U.S. Bureau of Labor Statistics report released Friday, Indiana payrolls increased by about 15,100 from October to November. Since November 2020, the state’s payrolls have grown by about 81,000 positions, or a 2.7% increase.

“The strong month in payrolls was made possible by solid payroll growth in manufacturing, professional and business services, and leisure and hospitality,” said Uric Dufrene, Sanders Chair in Business at Indiana University Southeast.

Manufacturing created the most growth, adding about 5,000 jobs in October.

“As the nation works through supply chain challenges, we can expect to see additional gains in manufacturing,” Dufrene said. “The biggest challenge to manufacturing growth is with the labor supply. Customer inventories remain lean, and production will be necessary to restock customer inventories.”

Indiana’s unemployment rate dropped from 3.3% in October to 3% in November.

But Dufrene cautioned that the BLS household survey was not as positive as its establishment survey, and still shows employers are facing challenges.

The household survey showed another small decline in the Indiana labor force, dropping by about 8,000 from October to November.

“The number of unemployed declined by approximately 10,000, and that is why we see the decline in the unemployment rate to 3%,” Dufrene said. “Despite the strong gain to Indiana’s payrolls, Indiana is not seeing any growth in the labor force. At some point, we do anticipate that labor force numbers will grow, we just have not seen any data to support that yet.”

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