Indianapolis-Carmel forecast 2019.

• Author: Anderson, Kyle
• Position: Statistical data

The Indianapolis-Carmel-Anderson metropolitan area (1) economy is poised for another year of strong growth and conditions that will benefit many in the area. Development continues to be solid in many areas and unemployment is low. The number of jobs and the level of wages both continue to grow.

Communities around central Indiana are finding it necessary and important to invest in projects that improve quality of life and provide amenities for residents. Carmel has invested heavily in developing its downtown area. Speedway's development of its downtown is leading to growth in business and residential investment.

Downtown Indianapolis continues to draw significant development in all four quadrants. Large-scale projects, such as the Convention Center expansion and hotel development on the Pan-Am Plaza site or the Waterside development on the old GM plant, are still years away (and plans are not yet finalized). But many smaller projects will continue to lead to growth in the downtown market.

The message to community leaders is clear. Investing in infrastructure to improve quality of life is necessary to maintain a healthy local economy. Tax incentives are not sufficient to draw in businesses and residents. Bike trails, community centers and connected neighborhoods were once seen as luxuries, but now are important economic development tools. This trend will continue, especially if the economic expansion continues nationally.

Employment and wages

The Indianapolis-Carmel-Anderson economy added 22,900 jobs over the past 12 months, an increase of 2.1 percent. The unemployment rate in the area is similar to last year, sitting at 3.5 percent. It is likely that the rate will remain between 3.4 percent and 3.8 percent throughout 2019. Low unemployment is a good indicator of a healthy local economy and is good for workers--but it may create some challenges for businesses looking to grow. The number of job postings exceeds the number of people looking for work.

Last year, the workforce grew by 2.8 percent, a trend that will need to continue in order to fuel employment growth. The local economy will continue to add jobs in 2019.

Employment sectors

A number of national trends continue to play out in local employment sectors. Health care and social services remains the largest sector for employment in the Indianapolis metro, growing by 4.4 percent over the last year. This reflects the national trends of an aging population and increased investment in health...