IU economists forecast more job losses for Indiana

Tools

By WSBT News1

Story Created: Nov 6, 2008 at 11:14 AM EST

Story Updated: Nov 6, 2008 at 11:14 AM EST

INDIANAPOLIS (AP) — Indiana University economists predict a moderate recession in 2009 and additional losses of up to 15,000 jobs in the state because of a slowing economy that already has affected housing, construction and manufacturing.

The economists said during a presentation Thursday that the recession next year likely would be similar in severity to those in 1990 and 2001.

"But we cannot rule out something worse, comparable to the severe recession in the early 1980s," said Bill Witte, associate professor of economics and co-director of the Center for Econometric Model Research at IU.

The annual report by the IU economists calls for the statewide job market to shrink through most of 2009, before improving late in the year. Indiana's unemployment rate in September was 6.2 percent, down from 6.4 percent the previous month, and the IU study said the average rate for 2009 could range from 6 percent to 7 percent.

The outlook for Indianapolis could be worse than the state as a whole, the report said, because of a strengthening dollar that could slow manufacturing export growth. The jobless rate in Indianapolis could hit 6.5 percent next year, up from 5.5 percent in September, and might not peak until 2010, according to the study.

Indiana already has seen five straight months of job losses, mainly in manufacturing and construction. Other sectors, including education, health services, government, leisure and hospitality have seen job growth.

"Indiana is not immune from the forces shaping the national and global economies, and its outlook for the year ahead is similarly cloudy," said Jerry Conover, director of the Indiana Business Research Center at IU's Kelley School of Business.

The panel will present its findings in nine other cities across the state through Nov. 18.

___

Information from: The Indianapolis Star, http://www.indystar.com

More Good Stuff

WSBT Weather

Current Temp 34.1

More Weather

WSBT Weather

More Weather

On Demand

iPhone
Get the WSBT News and Irish Sports Report apps for your iPhone! Read more »
On DVD
Order a DVD of a WSBT news story! Read more »
Twitter
Follow us on Twitter! Read more »
Facebook
Connect with us on Facebook! Read more »
WSBT E-News
Daily StormTracker e-mails right to your Inbox! Read more »
Video On Demand
Miss a story on WSBT News? Watch it here! Read more »
CBS Shows
Watch CBS shows and news online, free! Read more »
WSBT Alert
Breaking News & Weather right to your cell phone! Read more »
Mobile
WSBT News on the go for your cell phone or PDA. Read more »
RSS Feeds
Get news and updates as soon as they're published. Read more »

Stock Quotes

YouNews

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.