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Region rate still lower than state's

NWI unemployment rate rising

NWI unemployment rate rising
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The manufacturing slowdown continues to drive unemployment up in Northwest Indiana, with 5.6 percent of the work force unable to find jobs in October as compared to 4.2 percent a year ago, the U.S. Bureau of Labor Statistics reported Wednesday.

In October, 300 more people in the region were out of work as compared to September, boosting the total number of unemployed to 18,900, according to the bureau's monthly Metropolitan Area Employment and Unemployment report.

Indiana's seasonally adjusted unemployment rate was 6.4 percent in October, and the national rate was 6.5 percent.

In the greater Chicago area, the unemployment rate hit 6.4 percent in October, up from 4.6 percent a year ago, the bureau reported. The statewide unemployment rate in Illinois for October was 7.3 percent.

The rise in unemployment is starting to pinch local social service agencies, which see more people coming to food pantries and applying for home heating assistance, said Tom Cottingham, executive director of Greater Hammond Community Services.

"It's the economy. There is no question about it," Cottingham said. "A lot of people have been hurting since June."

Adding to the problem, many people who can only find part-time work to make ends meet are seeing their hours cut, Cottingham said.

The rise in unemployment also has started to pinch the state's Unemployment Insurance Trust Fund. Its balance available for paying out unemployment benefits has shrunk to just $21 million, the Indiana Department of Workforce Development reported.

The state plans to borrow up to $330 million from the federal government to pay out benefits until the Indiana General Assembly can take action to replenish the fund.

Copyright 2012 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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