WIOA State Plan Common Elements

i. Employment and Unemployment

Employment size in Indiana has continually increased over the last ten years, with the exception of 2020 amid the height of the global COVID-19 pandemic. The average annual employment size in Indiana in 2022 was 3,302,632, a 2.4% increase from the year prior.

Figure 3: Average Annual Employment Size in Indiana, 2002 - 2022 (source: Bureau of Labor Statistics)

The employment-population ratio represents the number of employed people as a percentage of the civilian noninstitutional population. In other words, it is the percentage of the population that is currently working, calculated as: (Employed ÷ Civilian Noninstitutional Population) x 100. From 2012 to 2018, the employment-population ratio steadily increased, demonstrating an increase in employment by the State’s population. However, the ratio dipped significantly in 2020 during the COVID-19 pandemic but is on track to return to pre-pandemic levels.

Figure 4: Employment-Population Ratio in Indiana, 2011 - 2022 (source: Bureau of Labor Statistics)

The average annual unemployment rate in Indiana has followed national trends. Since 2014, the State’s average annual unemployment rate has been slightly lower than the national average annual unemployment rate, even amid the COVID-19 pandemic when it peaked at 7.3% compared to 8.1% nationally.

Figure 5: State & National Unemployment Rate, 2011 - 2022 (source: Bureau of Labor Statistics)

As depicted in Table 20, the lowest annual unemployment rate in 2022 was in Indiana Economic Growth Region (EGR) 5 at 2.4% which encompasses the “donut counties” surrounding Indianapolis and Marion County (Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, Morgan, and Shelby). The highest annual unemployment rate was in EGR 1 (4.1%) which encompasses the northwestern counties of Jasper, Lake, LaPorte, Newton, Porter, Pulaski, and Starke. For a full map of the EGRs, please see https://www.in.gov/dwd/about-dwd/regional-maps/.

The labor force participation rate ((Labor Force ÷ Civilian Noninstitutional Population) x 100) is highest in EGR 12 (52.6%), EGR 5 (52.0%), and EGR 11 (51.7%). This reflects the percentage of the population in those EGRs that are either working or actively working for work.

From 2002 to 2009, Indiana’s labor force participation rate was higher than the national labor force participation rate, however 2009’s Great Recession impacted the State’s labor force greater than the nation. In 2013, Indiana mirrored national labor force participation rates and it has had a higher labor force participation rate than the nation ever since. Even during the COVID-19 pandemic, Indiana’s labor force participation rate remained more resilient than the nation’s labor force participation rate. In 2022, Indiana’s labor force participation rate was 63.5% compared to the national rate of 62.2% - a difference of 1.3 percentage points.

Figure 6: Labor Force Participation Rate, 2002-2022, Indiana & U.S. (source: Bureau of Labor Statistics)

Ensuring opportunities for populations with barriers to employment is critical to ensuring Indiana has a strong labor market and economic opportunities for all. The next section focuses on identifying demographics that are more likely to be unemployed or to have dropped out of the labor force.

Table 21 shows labor force demographics by sex and race/ethnicity. In 2022, 70.3% of civilian non-institutionalized men were in the labor force, compared to 57.6% of civilian non-institutionalized women.[1] Employment within a population group by race/ethnicity is highest among Hispanic or Latino men (77.4%), followed by Black or African American men (70.4%). Employment within a population group by race/ethnicity is lowest among White women (55.2%), however the unemployment rate for White women (and White men) is 2.8%, respectively, compared to 4.0% for Hispanic or Latinos and 5.6% for Black or African Americans.

[1] Source: U.S. Bureau of Labor Statistics, Current Population Survey, 2022

Using a different dataset, the U.S. Census’ American Community Survey allows for another cut of employment statistics by demographic, including populations more likely to face barriers to participating in the labor force. Overall, the labor market is tight, with the vast majority of working aged adults already participating in the labor force. There are pockets of workers in the labor force, including among disadvantaged and underserved populations, that would benefit from targeted programs to remove barriers and provide opportunities to work, including teens and young adults, individuals who have not earned a high school diploma or equivalent, individuals below the poverty line, and individuals with disabilities. Note this data cannot be cross-tabulated as the population included varies (e.g., full population 16 + or just the population aged 25 – 64) and individuals may fall into multiple categories (i.e., an individual who is not participating in the labor force may identify as male, two or more races, and below the poverty line, with no one of those identities explaining why that person is not employed).

Figure 7 shows Indiana’s employment by age for the civilian population over the age of 16. The overall employment rate is 62% with 36% of the population 16 years and older not participating in the labor force, but it varies widely by age. Overall, unemployment is low, but tends to be highest among young adults. Among the prime working age population (25 to 54), 81% are employed, 3% are unemployed, and 16% are not participating in the labor force. This relatively low share of adults not participating in the labor force are likely not participating by choice (e.g. stay at home parents) or have high barriers preventing them from participating. Over half of teens and nearly a quarter of young adults under the age of 25 do not participate in the labor force, reflecting long-term national trends prioritizing education and college. Only 38% of seniors and those likely to retire in the next ten years (55 years and older) are currently employed, and the 61% who are not participating in the labor force are likely doing so due to retirement.

Figure 7: Employment by Age, Civilian Population Aged 16+, 2022 (source: US Census, American Community Survey)

Figure 8 shows Indiana’s employment by race for the civilian population over the age of 16. The vast majority of the population and workforce in Indiana identifies as White alone (not shown in the figure due to significant differences in scale), accounting for 79% of those employed, 63% of those unemployed, and 81% of those not participating in the labor force. With the exception of people who identify as Black or African American alone, members of other racial groups have higher employment rates, and all other racial groups have a lower share of people not participating in the labor force than those who identify as White alone. Unemployment rates are highest among people who identify as Black or African American alone or as two or more races.

Figure 8: Employment by Race, Civilian Population Age 16+, 2022 (source: US Census, American Community Survey, S2301, 1-year estimates)

Employment statistics by educational attainment for the civilian population between the ages of 25 and 64 are shown in Figure 9. Overall, 77% of the population aged 25 – 64 are employed, 2% are unemployed, and 20% are not participating in the labor force. About 10% of this population have less than a high school diploma, while 29% have earned a high school diploma or equivalent. Another 29% have completed some college or two-year degree, and 32% have a four-year degree or higher. Labor force participation increases, and unemployment decreases as educational levels rise. Nearly half of individuals that did not graduate high school are either unemployed or not participating in the workforce.

Figure 9: Employment by Educational Attainment, Civilian Population Aged 25-64, 2022 (source: U.S. Census, American Community Survey, S2301, 1-year estimates)

Employment by sex is shown in Figure 10 for the population between the ages of 20 and 64. While males and females each account for 50% of the population in this age range, males account for a slightly larger share of the employed (52%). Women have slightly lower unemployment, but they participate in the labor force by 6 percentage points less than men.

Figure 10: Employment by Sex, Civilian Population Aged 20-65, 2022 (source: U.S. Census, American Community Survey, S2301, 1-year estimates)

Figure 11 shows employment statistics by parental, poverty, and disability status for the population aged 20 to 65. Females living with their own children account for about 26% of the female population, and counter to conventional thinking about females in the workforce, they are more likely to be participating in the labor force than the broader population of females (17% are not in the labor force compared to 22% for females overall as shown in Figure 11 and compared to 20% for the overall population aged 20-65). However, having younger children under the age of 6 does appear to impact labor force participation among females compared to having older children, although this group accounts for a relatively small number of people. Individuals below the poverty line have the highest unemployment rates of any demographic at 16%. They also have one of the highest rates of not participating in the labor force at 52%. Half of individuals with any type of disability do not participate in the labor force, likely in part due to the risk of losing disability benefits.

Figure 11: Employment by Other Demographics, Civilian Population Aged 20-65, 2022 (source: U.S. Census, American Community Survey, S2301, 1-year estimates)

Figure 12: Indiana Veterans by Gender and Age, Male

Figure 13: Indiana Veterans by Gender and Age, Female

In 2024, 372,484 Veterans are estimated as living in Indiana, which is 7% of the state's adult resident population. 2.9% was the annual average unemployment rate for Veterans in 2023. Female Veterans make up 10% of total Veterans.  Male Veterans aged 60+ make up 55% of the total Veteran population in Indiana.  

ii. Labor Market Trends

The workforce demographics of Indiana’s labor market have changed since 2000. The greatest percentage increase of any population cohort was concentrated in Asian populations (+212.3%), followed by two or more race populations (+187.9%), and Hispanic or Latino populations (+149.3%). While Indiana’s population has become more diverse over the past two decades, white populations continue to represent the greatest share with 84.0%.

Table 23 details the population share by age statewide and nationally in 2002 and 2022, respectively. Indiana’s population by age composition closely mirrors that of the nation. According to U.S. Census Bureau’s American Community Survey 1-Year Estimates, individuals between the ages of 55-64 represent nearly 17% of the State’s total population in 2022.[1] As this population cohort prepares to exit the workforce in the next five years (due to retirement), it will be critical to ensure a pipeline of talent is generated to backfill the workforce demand by employers.

[1] Source: U.S. Census Bureau, American Community Survey, Table S0101, 2022

Manufacturing employs the largest share of workers over the age of 55 (31%), followed by the public services sector (26%); and health care and social assistance sector (25%). For individuals between the ages of 25-34 (i.e., recently graduated from post-secondary education and/or been engaged in the workforce post high school), the top sectors for employment still include manufacturing and health care and social assistance, but not as great of a share as older population cohorts in Indiana. For this age group, we see more individuals employed in administrative and support and waste management and remediation services (7%) and accommodation and food services (7%) than for those ages 55-64 (5% & 4%, respectively).

Table 25 details the top 20 occupations by employment in Indiana and the age cohorts that make up each occupational group at the 5-digit SOC level. The percentage share depicts how each population cohort stacks up among the top 20 occupations.

Among the top 20 occupations, retirement risk (a large share of the workforce above the age of 55) is highest among office clerks, general (16.4%), heavy and tractor-trailer truck drivers (15.8%), and retail salespersons (15.7%). In comparison, prime working age individuals (between the ages of 25-54) are largely concentrated in laborers and freight, stock, and material movers, hand (19.8%), Miscellaneous assemblers and fabricators (18.3%), and registered nurses (14.2%), all of which tend to be physically demanding jobs.

In 2020, Indiana had 148,169 individuals employed in the State but living outside the State. In comparison, 189,046 individuals lived in the State but were employed outside of the State, making Indiana a net exporter of talent (-40,877 workers).[1] A majority of Indiana’s outflow workers were between the ages of 30-54 (54.0%), followed by 55 years or older (24.2%), and 29 years or younger (21.9%). A majority of workers in-flowing into Indiana were between the ages of 30-54 (50.7%), followed by 29 years or younger (25.2%), and 55 years or older (24.1%). For comparison, the majority of workers that live and work in Indiana are between the ages of 30-54 (51.4%), 29 years or younger (25.0%), and 55 years and older (23.6%).

Leveraging commuting data from the U.S. Census Bureau’s American Community Survey, workforce migration in each of the Economic Growth Regions is detailed in Table 26.

[1] Source: OnTheMap, U.S. Census Bureau, 2020 (most recently available data)

Indiana is tracking the potential risk automation may have on occupations across the State. Using Lightcast’s U.S. Automation Index analysis, occupations that are “at risk” have an automation index score above 100, whereas those “below risk of automation” have an index score below 100.[1]

At the 2-digit SOC level, occupations most at risk of automation include Food Preparation and Serving Related Occupations (125.4); Construction and Extraction Occupations (123.2); Building and Grounds Cleaning and Maintenance Occupations (122.5); Production Occupations (113.6); Transportation and Material Moving Occupations (111.0); Farming, Fishing, and Forestry Occupations (109.9); and Installation, Maintenance, and Repair Occupations (108.8).

The impact that these occupations have on Indiana’s industries is significant. The industries most impacted by occupations at-risk of automation include Accommodation and Food Services (89.6% of jobs); Transportation and Warehousing (81.9% of jobs); Mining, Quarrying, and Oil and Gas (81.5% of jobs); Construction (75.5% of jobs); and Manufacturing (75.5% of jobs).

It is worth noting, however, that automation does not necessarily equate to job losses. Job displacement may occur during the transition to automation; however, there will be a need to upskill the workers in impacted industries and occupations to be able to monitor, troubleshoot, and repair the automated processes they oversee. The greatest risk, as it relates to automation, is that the workforce may not be ready to perform the required tasks – not that jobs will disappear entirely. The State of Indiana recognizes that social benefits may occur with automation trends. For example, some of the sectors that have higher likelihood of automation (e.g., Accommodation and Food Services, Transportation and Warehousing, etc.) do not pay living wages. These are the jobs employers struggle to fill and most likely to be disproportionately staffed by underserved communities and women. Indiana is driven to ensure workers have the foundational skills needed for a new kind of entry-level job, one that likely requires more technological skills.

Figure 14: Percent of Total Jobs by Industry At-Risk of Automation (source: Lightcast)[2]

[1] Lightcast combines data with the Frey and Osborne findings at the occupation level to identify which job tasks are “at risk” and which are resilient. Lightcast also incorporates data to identify where occupations cluster in industries facing disruption, and where workers’ skills mean their nearest job options are also facing automation risk. This is a 100-based index.

[2] Source: Lightcast 2023.2, Inverse Staffing Patterns with manual calculation & analysis

When considering the future workforce that may be impacted by occupations most at-risk of automation (ages 14-34), Food Preparation and Serving Related Occupations poses the greatest risk. These entry-level occupations do not require extensive training or experience. While these occupations have not traditionally provided competitive wages, they have provided younger workers with initial workforce experience. With automation impacting these occupations, Indiana will need to align with workforce and education and training partners to get younger populations into a work-based learning experience (e.g., registered apprenticeship program, internship, etc.) where they can earn hands-on experience and industry-recognized credentials into Indiana’s emerging and  existing industries.

iii. Education and Skill Levels of the Workforce

In 2021, Indiana’s educational attainment followed national trends with a few notable exceptions. The State lags behind the nation in the share of residents with a graduate degree or higher, 17.7% compared to 20.4%, and it had a slightly smaller proportion of its population end their education prior to completing high school. However, the share of Indiana residents that have some college, but no degree (which includes formal credentials or certificates) exceeds national figures by over six percentage points. This indicates that Indiana has a large share of “middle skill” workers, which is in keeping with its strong manufacturing, transportation and logistics, and health care industry base.

Aligning with trends related to “middle-skill” job growth, Ivy Tech Community College’s statewide Skills Training (or industry-aligned, non-credit courses) courses have witnessed a rapid increase in employer demand for custom training. As of 02/12/2024, 15,049 students are currently enrolled in Skills Training courses, which is a 43% point in time increase from the same time period in 2023. The increased demand for Skills Training follows ongoing employer Skills-Based Hiring trends as well.  

Indiana counties that have the largest share of adults (ages 18-64) without a high school diploma or high school equivalency (HSE) are concentrated in LaGrange (46.5%), Daviess (27.5%), Elkhart (19.2%), and Noble (18.6%) counties. Indiana is home to 16.8% of the nation’s Amish population (ranking third after Pennsylvania and Ohio), and these populations are largely concentrated within these counties. Traditional Amish schools complete education in the eighth grade, which skews the high school graduation or HSE rates in these counties.

In December 2022, the Indiana Department of Education (IDOE) released data related to the State’s graduation rate. In 2022, the State graduation rate was 86.6%, down from 2021 (86.7%), 2020 (87.7%), and 2019 (87.3%).[1] It is worth noting that State and Federal testing requirements were waived in 2020 in response to the COVID-19 pandemic. Graduation rates in 2022 for traditional public-school corporations was 88.0% whereas the graduation rate for charter schools was 45.4%.

While the statewide graduation rate held relatively steady overall as many students continued to recover from the academic impacts of pandemic-related learning disruptions, there were successful outcomes from the 2022 graduation data. Statewide graduation rates increased between 2021 and 2022 for:[2]

• Black students: increased from 77.1% to 77.5%
• Hispanic students: increased from 82.7% to 83.9%
• English Learners: increased from 82.8% to 85.0%
• Special education students: increased from 74.5% to 76.4%
• Students receiving free and reduced-price meal: increased from 82.8% to 83.7%

Despite these successes, Indiana recognizes the need to increase the statewide high school graduation rate and propel students toward a career path beyond high school.

Education requirements by employers vary among industry sectors. In June 2022, Conexus Indiana released its State of Indiana’s Advanced Manufacturing Workforce report. Upon surveying hundreds of advanced manufacturing organizations of varying sized across the State, they discovered 77.0% of organizations require a high school diploma or equivalent for positions. These positions were concentrated in production and machine operators. Just 16.6% of positions require a bachelor’s degree or higher, with many of these positions in engineering, IT, administration, and leadership, followed by 4.8% of positions requiring a two-year degree, and 1.6% of positions requiring a vocational trade certificate.[3]

The life sciences industry, like manufacturing, is an economic driver for the State of Indiana, especially with pharmaceutical giant, Eli Lilly, Inc. headquartered in Indianapolis. BioCrossroads, a life sciences initiative that advances Indiana’s signature strengths in the life sciences by connecting with corporate, academic, and philanthropic partners, developed a 2022 report titled, BioCrossroads and the Indiana Life Sciences Ecosystem: Tracking Two Decades of Progress and Charting a Path for Sustained Success. Through data research and analysis via Lightcast, BioCrossroads discovered that Indiana’s life sciences sector remains heavily oriented around not only well-educated scientists and medical doctors, but also many in production and technician positions that are considered “middle-skill” occupations. Life sciences companies rely heavily on a workforce of skilled technicians (both in engineering and scientific domains), production workers with varied skills, transportation and material moving occupations, and others, such as installation, maintenance, and repair. These middle-skill occupations represent well over one-third of jobs in the life sciences sector (42%), compared to just 32% for all other industries in the State.[4]

According to BioCrossroads 2020 Report, the number of graduates with an Associate’s degree or higher in health and clinical sciences fields was 10,331. The number of bioscience graduates in 2020 was 1,617 and the number of enrolled medical students was 365 in 2020.[5]

As Indiana rebounds from the COVID-19 pandemic, the demand for post-secondary credentials increases. As detailed in Figure 13, over the next ten years (2022-2032), jobs that require an Associate’s degree (10.3%), Bachelor’s degree (11.9%), Master’s degree (15.2%), and Doctoral or professional degree (7.9%) are projected to increase.[6] Jobs that do not require postsecondary education remain critically important to the Hoosier economy, however, an increasing share of jobs will require a postsecondary credential as an entry-level requirement.

Figure 15: Percent Jobs Change by Education Levels in Indiana, 2022-2032 (source: Lightcast)

Jobs with lower education requirements are more susceptible to disruption from automation than jobs requiring bachelor’s and graduate degrees. Because Indiana’s Black and Hispanic/Latino residents earn postsecondary credentials at lower rates and disproportionately work in jobs with lower educational requirements, it follows that Hispanic/Latino and Black workers would be at greater risk for automation than White or Asian workers.[1] The available data on automation risk, when broken out by race/ethnicity, shows this to be the case for Indiana’s Hispanic/Latino workers, American Indian or Alaskan Native workers, Native Hawaiian or Other Pacific Islander workers, Black workers, and male workers. This data was compiled by occupation employment numbers in Indiana by demographics (gender and race/ethnicity) and calculated to determine automation risk. Automation risk is categorized as Low (72-94), Intermediate (95 - 116), and High (117 - 139).

[1] Note: data provided for Native Hawaiian or Other Pacific Islander and Two or More Races was a small sample size.

Figure 16: Employment Demographic in Jobs by Automation Risk, Indiana, 2022-2032 (source: Lightcast)

[1] Source: Indiana Department of Education, 2022 Federal Graduation Rate Data

[2] Source: Indiana Department of Education, 2022 Federal Graduation Rate Data

[3] Source: https://www.conexusindiana.com/wp-content/uploads/2022/07/AMW-FINAL-PDF-1.pdf

[4] Source: https://www.cicpindiana.com/wp-content/uploads/2022/10/BioCrossroads-Ecosystem2022-webready.pdf

[5] Source: https://www.cicpindiana.com/wp-content/uploads/2022/10/BioCrossroads-Ecosystem2022-webready.pdf

[6] Source: Lightcast 2023.3, Occupational Staffing Patterns by Entry-Level Education Requirements

With the continued incorporation of automation into the workplace comes with it the demand for increased digital skills among Hoosier workers. TechPoint, the growth initiative for Indiana’s digital innovation economy, released a 2023 report titled Seismic Shifts in the Talent Landscape: 2023 TechPoint Indiana Tech Workforce Report, which revealed hiring trends by employers seeking tech talent across all industries. The most in-demand technical skills sought after by employers include agile methodology, automation, software development, and software engineering.[1] SQL programming language remains the most referenced technical software skill, but Python programming language and Amazon Web Services have increased significantly since 2021.

Indiana employers continue to significantly restrict their talent pools by over relying on bachelor’s degrees and years of experience as a proxy for skills and competency. Across tech roles, 47.6% of job listings called for a bachelor’s degree in 2022 and 24.6% called for an associate degree. Only 33.6% of job descriptions in 2022 did not call for a specific degree requirement or accepted a high school diploma as a minimum requirement. By focusing on degrees and years of service, companies significantly reduce their pools of candidates, eliminating many who have the skills and competencies to fill the positions, but get screened out. In 2022, 29.8% of descriptions listed no specific number of years required. Nearly 8 percent required one year of experience.[2] Through the collaborative partnerships of TechPoint, the Markle Foundation, and other TechPoint partners, TechPoint has begun reducing Indiana tech employers’ reliance on degrees, credentials, and year of experience.

[1] Source: https://techpoint.org/wp-content/uploads/2023/01/2023-TechPoint-Tech-Workforce-Report.pdf (Job Postings Analysis)

[2] Source: https://techpoint.org/wp-content/uploads/2023/01/2023-TechPoint-Tech-Workforce-Report.pdf (data collected via Lightcast)