- Posted August 4, 2012 by
This iReport is part of an assignment:
Change in Unemployment Rate Could Hurt Cornfield Recovery
The Cornfield's home state of Indiana had finally got below the 8% mark on unemployment back in May dropping to 7.9%. Then the news came out that the rate had moved back up to 8.0% for June. Still below the national rate, but it was disappointing.
Word came out Friday that the national rate had risen to 8.3% for July. Alright so the White House is wanting us to be comforted that it wasn't a full .1%, but the rate only went up from 8.2% to 8.254%.
Hoosier economists are saying the uptick is not good news for those seeking work in the Cornfield. Business may be, as reported, sitting on piles of cash, but the uncertainity of what may happen if the nation drives off the "fiscal cliff" and how much the Affordable Care Act is going to cost, is keeping businesses from hiring.
Despite promising job numbers nationwide, the growing unemployment rate could stifle hiring in Indiana, experts warned.
University of Indianapolis economist Matt Will said the jobs numbers are better, but not the 300,000 to 400,000 new jobs the country needs to bring down the jobless rate, RTV6's Norman Cox reported.
"The production-manufacturing index, which is kind of the break-even point for whether the economy is growing or contracting on a real-time basis, for the second month in a row now, that number is below 50, which means the production economy is contracting," Will said. "That is not a good sign."
Will doesn't normally predict recessions, but he said he fears the country has reached the tipping point to push into another one.
Business leaders said companies that have money to hire simply won't risk cash in the current atmosphere of uncertainty.
"They don't know what their income tax rate is going to be. They don't know what their health care costs are going to be. They don't know really what their energy costs are going to be," said Indiana Chamber of Commerce President Kevin Brinegar.
From the Cornfield, those with jobs better sit on them, while those looking for work...you may have a long wait.