Unemployment Rate Drops, but are Hoosiers Really Better Off?

Greg Elliot can often be found at the American Red Cross putting in almost 40 hours a week. But Elliot doesnt work for them, he’s a volunteer. He started volunteering there about 7 months ago. He got laid off a year ago and has been in searching for employment since. He describes the job search as going “not very well.” “Ive got a bunch of applications in and resumes in get a call here and there” says Elliott. And to add to his lack of luck his unemployment benefits have run out. Last month Indianas unemployment rate dropped to 9.9-percent, the lowest since April. Last month was also when Elliot’s unemployment benefits ran out. “Moneys getting tight. Its only my wifes paycheck thats paying the bills” Elliott adds. So is the drop in unemployment a sign of better times ahead or something else? According to Uric Dufrene, professor at Indiana University Southeast, says numbers can be deceiving. The unemployment rate is determined by dividing the number of unemployed by those either employed or searching for work. But Dufrene found that from January to August, Indianas labor force dropped by 113-thousand, suggesting that the number of people giving up searching for work is what is causing the unemployment rate to drop. Dufrene also says that those Hoosiers that live in Indiana but work in another state can impact the unemployment rate. He adds that in August alone the labor force dropped by 22-thousand. The states unemployment agency is still waiting, though, wanting more data before determining whether this is a trend or not.