Indy job recovery still underway

June 18, 2010
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On the surface, it appears that the economic recovery took a small step backward in the Indianapolis metro area in May. Dig deeper, an Indiana University researcher says, and the infantile recovery still seems to be cooking.

Matt Kinghorn of the Indiana Business Research Center in the Kelley School of Business allows that the region had 4,600 fewer jobs in May than a year earlier, when the economy was still in decline. The figures were released today.

But the Indianapolis area looked good in May compared to April this year, Kinghorn adds. Only one other April-to-May transition in the past decade saw a larger increase than the 13,500 additional jobs posted this year.

Tracking Indianapolis from month to month is tricky because the government doesn't adjust the figures for seasonal fluctuations. However, he notes, even after accounting for the seasonal increase in such jobs as construction and the once-a-decade influx of census workers, Indianapolis still generated jobs. Not many, but some.

An encouraging sign is the increase in temporary workers, often a sign companies are ramping up production. Some firms hire temps to avoid committing to full-time workers until the economy firms up enough to justify the risk.

“It’s cautious optimism,” Kinghorn says. “We need to wait a little longer before we can say Indianapolis has turned a corner.”

What are your thoughts?

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  • Accountant using Knowledge and Resources to get the ball rolling!!!
    The Hiring Incentives to Restore Employment (HIRE) Act of 2010 (H.R. 2847) is a law in the 111th United States Congress to provide payroll tax breaks and incentives for businesses to hire unemployed workers. Often characterized as a "jobs bill,"[1][2][3] the Democrats in Congress insist that it is only one piece of a broader job creation legislative agenda, along with the Travel Promotion Act and other bills. The Senate passed the bill on February 24, 2010 by a vote of 70-28. The House of Representatives followed on March 4, 2010, passing an amended version (in compliance with new pay-as-you-go rules) by a vote of 217-201. On March 17, the Senate agreed to the House's amendment by a vote of 68-29, and sent the bill to President Barack Obama, who signed the bill on March 18, 2010.[4]

    Employers are eligible for a payroll tax credit when the employer hires certain new employees after February 3, 2010, and before January 1, 2011.[5] In order to take the payroll tax credit, the employee must have either been unemployed for at least 60 days prior to hire or worked fewer than 40 hours for another employer during the previous 60 days.[6] Employers do not pay the employer portion of social security tax, which is 6.2 percent, on wages paid to eligible new hires.[5] In addition, employers receive a general business income tax break if the employer continues to employee the new hire for at least 52 weeks.[5] The tax break is the lesser of $1,000 or 6.2 percent of wages paid to the new employee during the 52-week period.[5] Household employers are ineligible for both tax benefits, as are new employees who are related to the employer.[7] Also ineligible are employees who earn more than $106,000 per year and employees who displace a current employee, unless the first employee resigned or was terminated for cause.[8] Employers may claim the credit after an eligible employee signs a statement affirming their previous unemployed status, such as Form W-11.[9][10]

    The Act also extends the $250,000 deduction limit under section 179 through 2010,[11] authorizes $20 billion for highway and transit projects,[12] and makes reforms to municipal bonds.[1]

    In order to offset the costs of the Act, there will be a 30 percent withholding tax on income from U.S. financial assets held by foreign banks who have not agreed to disclose their American account holders' balances, receipts, and withdrawals.[2] Owners of these foreign-held assets on their tax returns if they are worth more than $50,000.[2] Individuals who do not disclose these assets will be subject to a 40 percent penalty.[2] The Act also closes a tax loophole that investors had used to avoid paying any taxes on dividends by converting them into dividend equivalents.[13]

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  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

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