Sharp employment growth helped Indiana’s unemployment rate fall to 8.7 percent in January, state officials said Tuesday.
The jobless rate fell 0.2 percentage points from a December figure of 8.9 percent, which reflected revised data from the U.S. Department of Labor’s Bureau of Labor Statistics.
Nonfarm payroll employment, accounting for seasonal employment changes, rose in January by 12,200 to more than 2.86 million from December. Employment in the public sector and financial activities were the only two sectors that showed month-over-month declines.
The state gained 38,700 jobs between January 2011 and January 2012, according to seasonally adjusted, revised data.
“January was a strong month for Indiana with excellent job creation,” said Mark Everson, commissioner of the Indiana Department of Workforce Development. “The new numbers from BLS show job growth in Indiana has been much better than the feds have been letting on.”
In a statement, Everson said called for the Bureau of Labor Statistics to modify its processes to ensure data given to states is more accurate.
Ball State University economist Michael Hicks said the 13,000 private sector jobs added in January was the largest monthly increase in a year and is good news for Indiana. Hicks, director of Ball State’s Center for Business and Economic Research, said at the current pace, Indiana could return to full employment by winter while the nation is more than three years away.
The improvement in the unemployment rate also means Indiana residents will no longer be able to collect up to 20 weeks of federally funded extended benefits after April 16. Extended benefits are the sixth and final tier of unemployment benefits and allowed people to be able to earn up to 99 weeks of compensation.
The federal government pays for extended benefits if the state’s three-month average unemployment rate is 110 percent higher than it was three years ago. About 10,000 Hoosiers currently receive extended benefits, according to the Department of Workforce Development.
The unemployment rate in Illinois in the first month of 2012 was 9.4 percent, down from 9.7 percent in December.
The nation’s jobless rate declined to 8.3 percent from 8.5 percent in January and remained at 8.3 percent in Februrary.
Editor’s note: This story has been corrected from an earlier version. Final extended unemployment benefit payments will be made April 16.