Despite availability of jobs, unemployment rate climbs

With “now hiring” signs continuing to dot the Greencastle landscape from the factories on the East Side to fast-food establishments all over town, it wouldn’t seem like finding a job would be that difficult locally.

Yet an unemployment figure of 4.1 percent has dropped Putnam County’s ranking to below the halfway mark of Indiana’s 92 counties -- coming in for June at 51st-best among the 92 Hoosier counties.

“Judging by comments from some of our employers in town, there’s lots of positions to be had,” Mayor Bill Dory said at a recent City Hall meeting. “Hopefully people will land on their feet and be able to restart their careers pretty quickly.”

That, however, can be contingent on them wanting to work. A reported 25 to 40 percent of jobless workers are still making more money while unemployed than they did while working.

“The fact that 25 to 40 percent of unemployed workers are still making more while unemployed than they did while working does not bode well for the market,” WalletHub analyst Jill Gonzalez said this week. “There is less incentive for people to get a job when unemployment pays more money, and as a result many businesses want to hire more people but cannot find workers.

“Expanded unemployment benefits were necessary during the height of the COVID-19 pandemic to keep families on their feet in the midst of massive layoffs. Now that the country has mostly reopened and there are a lot more job openings, the extra money is detrimental to economic progress.”

In a review of a number of local companies’ statements of benefits for tax abatement, it was noted that businesses like Chiyoda, Heartland and Ascena have had difficulty find qualified workers to fill jobs they have available. In the case of Chiyoda, that has hastened a move toward robotics to cover the more unskilled positions.

Meanwhile, Putnam County’s June jobless numbers are undoubtedly buoyed by recent layoffs at IAC on Greencastle’s East Side.

Speaking at last week’s American Jobs Plan rally in Greencastle, Jason Waller, president of UAW Local 2382 at the IAC plant on Fillmore Road, reminded the rally that IAC announced “significant layoffs” earlier this year. “We’re looking at losing over 85 percent of our workforce and probably are eventually going to close,” Waller said. “It’s been very emotional and very hard the last few months.”

Still, Putnam County’s jobless rate is at 4.1 percent while a 4.0 figure is considered by most industry experts to be full employment.

At 4.0 percent, only the chronic unemployed essentially remain -- those unable to pass a drug screen to secure a position, along with those unable to hold down a job because of transportation or child-care issues.

Indiana is struggling to recover from new unemployment claims, with last week’s claims higher than at the start of 2020, according to WalletHub’s updated rankings.

Weekly unemployment claims in Indiana increased by 52.5 percent, compared to the start of 2020. This was the 16th biggest increase in the U.S.

Indiana’s unemployment rate stands at 4.7 percent for June with the national rate at 5.9 percent. The monthly jobless rate is a U.S. Bureau of Labor Statistics indicator that reflects the number of unemployed persons seeking employment within the previous four weeks as a percentage of the labor force.

The latest Putnam number ranks ahead of only two contiguous counties -- Owen (4.9) and Clay (5.0), 20th and 17th worst overall -- with Hendricks and Montgomery (3.5 percent, tied for 19th best in the state), Morgan (3.7, tied for 29th) and Parke (4.0, tied for 45th) all posting better jobless figures than Putnam for the month.

Among the seven west-central Indiana counties for June, Putnam ranks ahead of Owen (4.9), Clay (5.0), Vermillion (5.1), Sullivan (5.2) and Vigo (5.7) and behind Parke (4.0).

Overall, Indiana’s top 10 best jobless ratings for June are: 1. LaGrange and Adams (2.8 percent), 3. Daviess, Dubois and Boone (3.0), 6. White, Union and Hamilton (3.1), 9. Martin (3.2), 10. Wells and Steuben (3.3).

Meanwhile, the bottom 10 unemployment figures among Hoosier counties for June are: 1. Howard (9.4 percent), 2. Lake (7.9), 3. LaPorte (6.2), 4. Miami (4.1), 5. Fayette (5.8), 6.Vigo (5.7), 7. Marion (5.6), 8. Madison (5.4). 9. Delaware and Scott (5.3).