It’s a tough economy out there, but Indiana’s unemployment rate has been faring better than the national average, a trend that could continue even after the U.S. lost 23,000 jobs in July.
U.S. employers shed 23,000 jobs last month, the Bureau of Labor Statistics said Aug. 7, a figure far below analyst’s expectations, and downward revisions to job growth numbers for May and June reflect a weaker labor market than previously estimated.
The July job losses overall come after hiring slowed in June following an earlier rebound from historically weak job creation in 2025. The July estimate comes in below the department’s now-revised estimated gains of 20,000 jobs added in June and 63,000 added in May.
Indiana has yet to release its July 2026 employment report, but data from January through June provided by the Indiana Department of Workforce Development shows the Hoosier State has maintained lower unemployment and higher labor force participation – the percentage of people 16 and older that are either working or actively looking for work – compared to the national average.
What’s Indiana’s unemployment rate?
Indiana’s unemployment rate stood at 3.3% for June 2026 – no significant change from May – compared to the national rate of 4.2%, according to data from the Indiana Department of Workforce Development.
By the numbers: Indiana industries that saw gains in June 2026
According to the Indiana Department of Workforce Development, industries that saw job increases in the Hoosier State included the following:
Which US sectors lost jobs? Which are still hiring?
Health care, typically a reliable engine of job growth, was the only industry to post notable gains in July, adding 22,000 roles. Though that figure still represents growth, it’s lower than the sector’s average monthly gain of 36,000 over the past 12 months.
Outside of health care, “hiring has very little momentum,” said Kory Kantenga, LinkedIn’s head of economics for the Americas. “This is not a labor market that’s reaccelerating despite speculation to the contrary earlier this year.”
Overall, Indiana had 100,062 open job postings, according to the Department of Workforce Development.
US Education, retail industry shedding jobs
At the national level, employment in local government education fell by 50,000 in July after showing little net change over the past year, the labor statistics bureau said. Retail trade shed 19,000 jobs and the financial activities sector lost 14,000.
Employment was little changed from June to July in other industries, including social assistance, construction, manufacturing, professional and business services, and leisure and hospitality.
Private jobs report offers different story, adding jobs in these industries
Though the bureau’s jobs report is generally considered the gold standard for labor market data, ADP’s National Employment Report released Aug. 5 also offers a look into private-sector hiring trends. It tells a different story, suggesting private U.S. employers added 44,000 jobs in July, driven by 36,000 roles added in the education and health services sector.
The ADP report found hiring increased in several other industries, including financial activities, professional and business services, information, construction and manufacturing. It found hiring declined in leisure and hospitality, trade, transportation and utilities, and natural resources and mining.
How is the U.S. job market overall?
The “low-hire, low-fire” dynamic economists said defined the U.S. labor market in 2025 may be back, if it ever went away.
Labor Department data released Aug. 4 showed the quits rate, number of layoffs and job openings were little changed in June from the month before.
Such a dynamic has led to a competitive market for job seekers. LinkedIn data revealed that the number of applications per job seeker on the platform rose in July, suggesting many are still finding it difficult to land work.
“It’s not just that new grads are hitting the market. That happens every year,” Kantenga said. “We haven’t seen as many jobs available for each person looking. That’s been declining since peak 2022. It’s been relatively steady over the past year, but it hasn’t increased either.”
US employees aren’t optimistic
Meanwhile, employed workers still fear layoffs and feel downbeat. Glassdoor’s Employee Confidence Index, which offers a glimpse at where employees feel their company is headed, fell to a record low in July. The percentage of employees who reported “a positive six-month business outlook” sunk to 43.5%.
Daniel Zhao, Glassdoor’s chief economist, said that while the survey question specifically asks about business outlooks, he knows employees consider several factors when answering. In a sluggish labor market, he said, even employed workers can worry about their ability to land their next gig, promotion or raise.
“Clearly, employees don’t feel like the current job market is working for them,” Zhao said, adding that just because someone is already employed, “that doesn’t mean that they are getting career opportunities they want.”
Where is the U.S. job market headed?
U.S.-based employers announced 33,429 job cuts in July, down 27% from June and the lowest monthly total in two years, a Challenger, Gray & Christmas report revealed Aug. 6. It found announced layoff plans are down 41% this year compared with the first seven months of 2025.
What’s causing job cuts?
For the fifth straight month, artificial intelligence led all reasons companies cited for job cuts. Most were seen in the technology and transportation sectors in July.
Is there a silver lining?
On the other hand, employers announced plans to hire 16,095 people in July, up 47% from June and the highest total since 2022, the report said. So far this year, hiring plans are up 25% compared with the same period in 2025.
“Employers are hiring more than they were at this point last year, which bucks the trend we’ve seen since 2020,” Andy Challenger, the firm’s workplace expert and chief revenue officer, said in a statement released alongside the report. “The demand is showing up in aerospace, energy, and manufacturing, work that happens on a floor rather than a screen.”
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John Tufts covers trending news for IndyStar and Midwest Connect. Send him a news tip at John.Tufts@IndyStar.com. Find him on BlueSky at JohnWritesStuff.
Reach Rachel Barber at rbarber@usatoday.com, follow her on X @rachelbarber_, and subscribe to her newsletter “Making More of Your Money” here.
This article originally appeared on Indianapolis Star: Indiana unemployment remains low while US jobs fall
Reporting by John Tufts and Rachel Barber, Indianapolis Star / Indianapolis Star
USA TODAY Network via Reuters Connect
By John Tufts and Rachel Barber, Indianapolis Star | USA TODAY Network
