Columbus.

• Author: Askari, Ammar
• Position: Economic overview - Statistical Data Included

The State of the Local Economy

The Bartholomew County monthly unemployment rate in 2000 averaged 2.4 percent from January through the month of September. Comparatively, the unemployment rates for the state and the nation over the same period were 3.3 percent and 4.0 percent, respectively (see Figure 1). Despite being higher than the average for all of 1999, which stood at 2.0 percent, this rate is still historically low. In fact, the September unemployment rate bottomed at an all time low of 1.2 percent (1.8 percent in 1999), compared with the state's 2.1 percent (2.5 percent in 1999) and the nation's 3.9 percent (4.4 percent in 1999) (see Figure 1). Regionally, only the counties of Hamilton (0.9%) and Brown (1%) posted a lower unemployment rate in the month of September. It is noteworthy also that Indiana's unemployment rate of 2.1 percent in September is currently lower than that of the four surrounding states.

[Figure 1 ILLUSTRATION OMITTED]

Table 1 shows the year to August unemployment rates, the number employed, the number unemployed, and the annualized employment growth rates through the 1980s and 1990s for Bartholomew County. Note that from 1990 to the most recent period available, the number employed has grown by 23 percent (from 31,922 to 39,142), and the unemployment rate fell from 4.9 percent to the current rate of 2.6 percent. August's unemployment claims in Columbus stood at 3,114, a whopping 51 percent increase from a year ago. Combined with a higher number of average monthly-unemployed workers, 1,003 (versus 784 in 1999), these figures signal a relative loosening of the local labor market. This is due to recent layoffs in the manufacturing sector, which may become a mixed blessing as the local businesses are in need of skilled labor.

Table 1 Employment Rates for Bartholomew County, 1980-August 2000

Annual # # Employment Employed Unemployed Growth (Monthly (Monthly Rate Unemployment Average) Average) (%)(*) Year Rate (%) 1980-1989 8.2 27,700 2,450 1.2 1990-1995 4.9 31,890 1,580 4.4 1996 2.8 38,029 1,120 2.1 1997 2.2 38,395 888 1.0 1998 2.1 39,000 837 1.6 1999 2.0 39,143 784 0.0 2000 (as of Aug.) 2.6 39,142 1,003 0.3 (*) The average annual employment growth rate is the percentage change in the monthly average for a period compared to the monthly average over the same period in the previous year.

After an all-time record earning before interest and taxes of $107 million on sales of $1.77 billion in the second quarter, Cummins...