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Job losses in auto industry hurt county |
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Saturday, June 27 2009 |
By TJ HEMLINGER
Staff Writer
Whitley County’s unemployment rate reached 13.2 percent in May, meaning that more than one out of every eight men and women in the county is out of a job.
The county’s unemployment rate was the 23rd highest in the state. Indiana overall has an unemployment rate of 10.4 percent.
The national average is 9.1 percent.
Whitley County’s unemployment rate was unchanged from April.
The Indiana Department of Workforce Development released statistics that show Whitley County has a labor force of 18,400 (up from 18,067 in April) and that 2,430 men and women are out of work. The figures for April were 2,104 looking for work for a rate of 11.6 percent
In May 2008, the benchmark month for the Department of Workforce Development, the unemployment rate for Whitley County was just 5.1 percent.
The jump is attributed to the decline in sales in the automobile industry, with Autoliv leaving Whitley County for Odgen, Utah, taking approximately 300 jobs with it.
“We have a couple of plants that supply (the Fort Wayne GM plant),” Alan Tio, president of the Whitley County Economic Development Corp., said. “Some in the area may have shut down or had their hours reduced.”
He said there was optimism in the fact that companies that are in the medical supply industry or the orthopedic business are growing.
“Companies that can diversify into the aerospace industry can do well,” Tio added.
Tio said there were some signs of optimism. “In the last year we’ve seen USSI add a number of jobs.
“It’s just going to take some time.”
Part of that effort comes from WorkOne Northeast out of Fort Wayne, which retrains people and also helps them find new opportunities. Its services are outlined at www.indianacareerconnect.com.
The highest rate in the state was in Howard County, home to Kokomo and a large Chrysler automotive plant. The rate there was 19.3 percent, meaning that nearly one out of five men and women was out of work.
Once again, the northeast corner of the state showed some of the highest rates in the state. Elkhart County was second at 17.5 percent, Noble County third at 17.3 percent, LaGrange County fourth at 16.6 percent, Steuben County eighth at 15.7 percent and DeKalb County 12th at 14.0 percent.
Allen County was 48th out of 92 Indiana counties at 10.7 percent, while Kosciusko 28th at 12.5 percent.
“The thing that surprises me is that Kosciusko is higher,” Tio said.
Indiana’s preliminary seasonally-adjusted rate in May increased to 10.6 percent. Indiana’s 0.7 percentage percent month-to-month unemployment gain equals increases in Illinois and Kentucky. Ohio reported a 0.6 percentage point increase from the previous month, while Michigan increased 1.2 percentage points from April.
Indiana’s unemployment rate is equal to Kentucky’s rate. Ohio stands at 10.8 percent. Michigan continues to lead the nation in unemployment at 14.1 percent. Illinois has the lowest rate among Indiana’s neighboring states at 10.1 percent.
The national seasonally-adjusted unemployment rate in May is 9.4 percent.
“As expected, extended furloughs and layoffs in the U.S. auto industry greatly affected Indiana’s employment picture in May,” Teresa Voors, commissioner of the Indiana Department of Workforce Development, said. “Indiana may see the ripple effect over the next few months as suppliers, dealership and other service providers adjust to the new business models of the domestic auto companies.”
Indiana’s seasonally-adjusted unemployment rate peaked at 12.8 percent in November 1982. Indiana’s unemployment rate stood at 5.3 percent in May 2008.
E-mail staff writer TJ Hemlinger at
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Last Updated ( Tuesday, June 30 2009 )
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