IBJNews

IU: Growth of Indiana’s labor force slowing rapidly

Back to TopCommentsE-mailPrintBookmark and Share

The growth of the state’s labor force is expected to slow significantly during the next three decades, predicts the Indiana Business Research Center.

The center at Indiana University’s Kelley School of Business on Tuesday released the results of a study it produced for the Indiana Department of Workforce Development.

IU’s research center attributes the slowdown to an increasing number of baby boomers entering retirement and a cresting of the decades-long rise in female labor force participation.

For Hoosier employers, the pullback could present several challenges, said Matt Kinghorn, the business research center’s state demographer.

“Firms in growing fields like health care, business operations and information technology will certainly have to compete for labor,” he sad in a prepared statement. “But even mature industries that will likely grow slowly or even decline in the next couple of decades, including many manufacturers, could still have trouble maintaining an adequate work force because they are more dependent on older workers.”

The slowdown started to emerge  between 2000 and 2010, when Indiana’s labor force grew by roughly 132,000—its smallest 10-year gain since the U.S. Census Bureau began collecting data on labor force size in 1940, the research center said.

It expects the state’s labor force to slow even more, to less than 120,000, in the current decade and essentially flatten between 2020 and 2030 before it begins growing again, albeit slowly.

The projections are quite a contrast to what occurred during the last half of the 20th century, when the baby-boomer generation and a large number of women entered the work force, helping Indiana’s labor force grow an average of 310,000 per decade, the research center said.

The shift is not unique to Indiana but instead reflects a national trend. According to the Bureau of Labor Statistics, labor force growth around the country slowed to an average annual rate of 0.8 percent last decade compared with 1.6 percent annually between 1950 and 2000.

The Bureau of Labor Statistics expects the rate to slide even further, to 0.6 percent this decade and to 0.4 percent between 2020 and 2030.

In Indiana, seven of the state’s 16 metropolitan areas are expected to match or exceed Indiana’s 0.4-percent average annual growth rate this decade, including the Indianapolis-Carmel area. Its labor force is projected to grow by 1 percent per year this decade, tops in the state.

Other metro areas with relatively high annual projected growth rates through 2020 include Lafayette and the Indiana portion of the Louisville metro area (both 0.6 percent) and Elkhart-Goshen (0.5 percent).

At the other end of the spectrum, Kokomo is expected to suffer the greatest rate of decline (0.6 percent), followed by Anderson (0.4 percent) and Muncie (0.3 percent).
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. If what you stated is true, then this article is entirely inaccurate. "State sells bonds" is same as "State borrows money". Supposedly the company will "pay for them". But since we are paying the company, we are still paying for this road with borrowed money, even though the state has $2 billion in the bank.

  2. Andrew hit the nail on the head. AMTRAK provides terrible service and that is why the state has found a contractor to improve the service. More trips, on-time performance, better times, cleanliness and adequate or better restrooms. WI-FI and food service will also be provided. Transit from outlying areas will also be provided. I wouldn't take it the way it is but with the above services and marketing of the service,ridership will improve and more folks will explore Indy and may even want to move here.

  3. They could take the property using eminent domain and save money by not paying the church or building a soccer field and a new driveway. Ctrwd has monthly meetings open to all customers of the district. The meetings are listed and if the customers really cared that much they would show. Ctrwd works hard in every way they can to make sure the customer is put first. Overflows damage the surrounding environment and cost a lot of money every year. There have been many upgrades done through the years to help not send flow to Carmel. Even with the upgrades ctrwd cannot always keep up. I understand how a storage tank could be an eye sore, but has anyone thought to look at other lift stations or storage tanks. Most lift stations are right in the middle of neighborhoods. Some close to schools and soccer fields, and some right in back yards, or at least next to a back yard. We all have to work together to come up with a proper solution. The proposed solution by ctrwd is the best one offered so far.

  4. Fox has comments from several people that seem to have some inside information. I would refer to their website. Changed my whole opionion of this story.

  5. This place is great! I'm piggy backing and saying the Cobb salad is great. But the ribs are awesome. $6.49 for ribs and 2 sides?! They're delicious. If you work downtown, head over there.

ADVERTISEMENT