Bloomington.

• Author: Conover, Jerry N.
• Position: Economic conditions - Statistical data

The Bloomington area's economy followed in the state's footsteps in 2006, and it appears on track for moderate growth in the year ahead.

Monroe County's population, estimated at 121,407 in 2005, continued its slow growth, adding nearly 500 residents over the preceding year (but gaining only 844, or 0.7 percent, since the 2000 Census). Though the county is growing, Monroe's neighbors are all growing at a faster rate, as shown in Figure 1. In contrast, the city of Bloomington's population (estimated at 69,017 in 2005) continued its gradual shrinkage, dropping over the year by about 300 and down 2,600 (3.5 percent) since 2000.

[FIGURE 1 OMITTED]

Employment in the area has continued growing at a moderate but encouraging pace, with the annual average for the Bloomington metropolitan area hitting an all-time high in 2005 at 81,436 nonfarm jobs. To date, 2006 is on track to surpass this mark, averaging more than 700 jobs above the year-earlier period on a seasonally adjusted basis through September.

This moderate employment growth has outpaced population growth over the past several years. Sustaining this trend required either more workers commuting to the Bloomington metro area from surrounding communities or a decrease in the unemployment rate, and both actually occurred. According to Indiana Department of Revenue data, 15,748 Monroe County workers commuted in 2004 from residences in other counties, up a slight 2.4 percent since 2000. The county's unemployment rate, meanwhile, has been down every month in 2006 compared to a year earlier, a welcome trend as more "help wanted" signs are visible all over town. The September figure of 3.7 percent was Monroe County's lowest unemployment rate in two years.

The local employment outlook for 2007 calls for a moderate gain in the range of 600 to 1,000 jobs. At this writing, no major plant expansions or closures have been announced for Bloomington in the coming year, although it appears that several firms in the automotive parts industry are considering locating in this general region of the state (in anticipation of the new Honda plant to be built in Greensburg and demand from other nearby auto plants).

The area's manufacturing sector has declined substantially in recent decades, though the rate of...