Unemployment drops, labor force shrinks in March

INDIANA—Indiana’s unemployment rate significantly decreased in March, with over 9,000 fewer Hoosiers reporting being out of work.

In March 2025, Indiana’s unemployment rate decreased to 4.1%, marking the third consecutive month of decline. The state’s labor force, which includes employed individuals and those actively seeking work, also contracted in March.

State data indicates that more than 16,000 Indiana residents have found employment in the past three months.

While this marks positive job growth, particularly in the manufacturing, leisure, and hospitality sectors, a portion of the unemployment drop is attributed to individuals leaving the labor force altogether.

Despite this recent trend, Indiana’s labor force participation rate continues to remain higher than the national average.