KOKOMO — The Indiana Department of Workforce Development released May’s unemployment numbers on Friday. The Kokomo area leads the state in unemployment.
With a labor force of 43,521, there were 35,330 people employed in Kokomo in May and 8,191 unemployed.
The numbers mean Kokomo’s unemployment rate was 18.8 percent compared to the state’s 10.4 percent and the nation’s 9.1 percent.
Furthermore, Kokomo’s new percentage is a 34 percent increase from April’s 12.5 percent unemployment rate.
In May 2008, Kokomo’s unemployment rate was 7.1 percent.
“I was shocked when I saw May’s numbers,” said Jeb Conrad, president and CEO of the Greater Kokomo Economic Development Alliance. “That is a dramatic jump from April’s numbers. I was surprised. I thought with all the positive things going on with Chrysler and Delphi, we were moving forward.”
The Alliance consists of 19 representatives from the Kokomo Downtown Association, the Kokomo/Howard County Chamber of Commerce, the Howard County Development Corp., and Inventrek.
The Alliance’s purpose is to consolidate all economic development activities under an umbrella organization by channeling all public and private funds spent on economic development through the Alliance.
Conrad was recently on CNN with Anderson Cooper discussing Kokomo’s plight.
“The unemployment numbers could be associated with Chrysler’s employees taking buyouts, and the furloughs from Chrysler and Delphi,” said Conrad. “Banks are saying they are having more deposits, so that means people aren’t spending money in the service sector so it all has a trickle-down effect.
“The unemployment numbers were higher than we anticipated, but on the brighter side, we have had several new business start-ups and we have had clients in town looking at us for their new business location.“
However, not only did Kokomo’s unemployment rate increase, but so did the unemployment rate in Howard and Tipton Counties.
For May, Howard County’s unemployment rate was 19.3 percent, up from 12.6 percent in April. Tipton County checked in with 16.2 percent, up from 11.9 percent in April.
Yet, double-digit unemployment figures are not uncommon to the Kokomo area, said Kokomo’s former mayor.
Steve Daily served as Kokomo’s mayor from 1980 to 1988. He currently chairs the Greater Kokomo Economic Development Alliance’s executive committee.
During his tenure as mayor, Daily said ”we had double-digit unemployment in the region for three years from 1980 through 1983. It’s not unusual for the region.“
Neither is the region rebounding to single-digit unemployment, added Daily.
“It is scary times for all of us. Having double-digit unemployment is not good in any fashion,“ said Daily. ”But we have had some good news around here lately. We have the Delphi and GM situation getting better. Chrysler is a mixed bag, but its good to hear people are being called back to work.
“... Kokomo has always bounced back and we will do it again.”
The unemployment figures were prepared in conjunction with the U.S. Bureau of Labor Statistics and have been adjusted to the current population survey for use in allocating federal funds.
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