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:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
  1. On my rental property, before tax caps, I was paying $2,000/yr in property taxes. After the tax caps I'm paying $4,000/yr. How exactly am I "benefiting the most"?

  2. Nick, I too tried that new Walmart NM on Michigan a couple of weeks ago. I had the same feeling, it had good prices, but something was just off about it. I can't put my finger on what it is, but it just didn't feel right. On the plus side, it was easy to get in and out of and much less busy than a typical Walmart.

  3. @Young Hoosier - you might want to check out the Paris skyline again....it's decidedly taller than 7-8 stories http://all-that-is-interesting.com/paris-skyline-photo

  4. Are you in need of Loan or financial help?, you need a loan for your business or to solve other monetary issues. James Lewis Loan Company started offering loans with a very low interest rate of 3% for a minimum of 15 years, Interested applicants should submit their request via email (jameslewisloan@gmail.com) for immediate processing with the information listed below: Names in full:................ Address:...................... Gender:.................... Email:........................ Phone Number:....... Amount Required:... Loan Duration:....... Country:................. Occupation:.................. ================================== In acknowledgment to these details, I will send you a well calculated Terms and Conditions for the amount you require. Warm Regards, Mr James Lewis

  5. So the GOP legislature passed a bill that gave big breaks to business at the expense of Indiana families. Color us not surprised.

ADVERTISEMENT