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?

  • 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. A Tilted Kilt at a water park themed hotel? Who planned that one? I guess the Dad's need something to do while the kids are on the water slides.

  2. Don't come down on the fair for offering drinks. This is a craft and certainly one that belongs in agriculture due to ingredients. And for those worrying about how much you can drink. I'm sure it's more to do with liability than anything else. They don't want people suing for being over served. If you want a buzz, do a little pre-drinking before you go.

  3. I don't drink but go into this "controlled area" so my friend can drink. They have their 3 drink limit and then I give my friend my 3 drink limit. How is the fair going to control this very likely situation????

  4. I feel the conditions of the alcohol sales are a bit heavy handed, but you need to realize this is the first year in quite some time that beer & wine will be sold at the fair. They're starting off slowly to get a gauge on how it will perform this year - I would assume if everything goes fine that they relax some of the limits in the next year or couple of years. That said, I think requiring the consumption of alcohol to only occur in the beer tent is a bit much. That is going to be an awkward situation for those with minors - "Honey, I'm getting a beer... Ok, sure go ahead... Alright see you in just a min- half an hour."

  5. This might be an effort on the part of the State Fair Board to manage the risk until they get a better feel for it. However, the blanket notion that alcohol should not be served at "family oriented" events is perhaps an oversimplification. and not too realistic. For 15 years, I was a volunteer at the Indianapolis Air Show, which was as family oriented an event as it gets. We sold beer donated by Monarch Beverage Company and served by licensed and trained employees of United Package Liquors who were unpaid volunteers. And where did that money go? To central Indiana children's charities, including Riley Hospital for Children! It's all about managing the risk.