Hollingsworth: Jobs Report Positive, Challenges Remain

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U.S. employers added 145,000 jobs in December to close out 2019, according to the U.S. Bureau of Labor Statistics. Economists surveyed by Dow Jones had been looking for job growth of 160,000.

The report also shows the unemployment rate held steady at 3.5%, and even lower in Indiana at 3.2%.

“We have a great situation in Indiana where unemployment is lower than the national unemployment rate,” said Congressman Trey Hollingsworth (R-IN), who serves the 9^th congressional district. “I think that this is another positive report, especially coming off of the huge report last month.”

The November jobs report showed 266,000 hires. Ball State University economist Michael Hicks says that number was “clouded” by the fact that General Motors union workers returned to work following their 6-week-long strike.

“So, the December report… is especially important in gauging the economy’s performance,” said Hicks. “Overall, this jobs report is consistent with an economy growing below 2 percent, accompanied by weakening wage gains.”

BLS data shows manufacturing employment nationwide was down 12,000 jobs in December but had a net gain of 46,000 for the year. Still, it’s well behind the 264,000 manufacturing jobs gained in 2018.

Hollingsworth says one of the biggest challenges for Indiana manufacturers is the tightening supply of qualified workers.

“And what I hear is that they are hiring, they see strong demand going forward. But their biggest challenge, frankly, is that they can’t find all of the talent and people that they need,” said Hollingsworth.

Hicks says a decline in the number of mining jobs, down 24,000 in 2019, is viewed as a leading economic indicator of a slowing economy.

“The good news is that employment options remain available, and the unemployment rate steady. Growth in the labor force exceeding new job creation,” said Hicks.