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August 3, 2012

Stats show stagnant job growth in Valley

Metro area unemployment numbers up since May but down from June 2011

Howard Greninger The Tribune-Star

TERRE HAUTE — Unemployment in the Terre Haute Metropolitan Statistical Area in June is higher than last month, however it is lower than a year ago, resulting in the economy basically remaining stagnant, according to the Indiana Department of Workforce Development.

Terre Haute’s MSA includes Vigo, Sullivan, Clay and Vermillion counties.

Terre Haute’s unemployment was 10.3 percent in June, up from 9.6 percent in May, but lower than the 10.7 percent unemployment rate in June, 2011. That unemployment data is not seasonally adjusted.

Manufacturing was one bright spot, growing by 100 jobs from May to June ending at 11,800  jobs.

Claudia M. Tanoos, vice president of the Terre Haute Economic Development District, said much of that growth in Vigo County is from existing companies, such as ThyssenKrupp Presta and Advics Manufacturing, as well as a slight employment increase from NantWorks Terre Haute LLC, which purchased part of Pfizer’s former Exubera facilities. That company is expected to add more jobs over the next three years.

“We have had more leads [for manufacturing development] this year that we have had in the past few years. This year seems to be holding its own, which is a good sign,” Tanoos said. “The state and utilities are providing some leads that we normally would not have received,” Tanoos said.

One area that shows a large decrease is in government jobs, something the state is questioning, said Joe Frank, spokesman for the Indiana Department of Workforce Development.

Overall, the Terre Haute MSA lost 1,029 jobs from May to June, of which 900 are government jobs.

“It looks like it remains stagnant [in the Terre Haute MSA] and government jobs are an anomaly,” Frank said.

“Government jobs dropped by about 900 [from 12,000 to 11,111 from May to June]. We are questioning that data, as there is no way it could have dropped that much,” Frank said. “There is no way the Terre Haute MSA [Metropolitan Statistical Area] lost 900 government jobs, but that is what the [federal] sample is saying.

“During the month for the entire state, [a federal data sample] states we lost 5,300 government jobs and that just cannot be right. The data sample just doesn’t look correct,” Frank said.

One aspect could be teachers, which may be shown as unemployed during summer months, he said.

“Teachers, whether they are hired back or not for the next school year is still up for debate in some cases, but will show up as employed later on as they went back to work. They may not have their reasonable assurance of rehire yet, so when they are called in a sample and are asked if employed, they say no,” Frank said. “That messes with the sample of government employees. We are questioning some of the federal data,” Frank said.

The state has submitted to the U.S. Department of Labor, Frank said, a trend from 2009 to 2011 showing spikes in [government] unemployment in June, which are then lowered by August or September. “That has not been happening for the rest of the country,” Frank said.

Private sector jobs, which are everything but the government and farm related business, also dipped in Terre Haute by 100 jobs from May to June, from 59,700 to 59,600 jobs. “That can be explained from typical seasonal work,” Frank said.

Unemployment among individual counties in the Terre Haute MSA is still among the highest in the state in June, according to preliminary 2012 data reported by the Indiana Department of Workfoce Development.

Vermillion County ranks second in the state at 10.6 percent unemployment, while Vigo County is fourth at 10.4 percent. Sullivan County ranks sixth at 10.3 percent and Clay County ranks 14th at 9.7 percent.



Howard Greninger can be reached at (812) 231-4204 or howard.greninger@tribstar.com.

 

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