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Indiana Unemployment Rate Holds at 3.5% in December

By: Charlotte Burke • January 27, 2026 • Indianapolis, IN
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(INDIANAPOLIS) - Indiana's unemployment rate stood at 3.5% in December 2025, remaining below the national rate of 4.4%, according to data released Tuesday by the Indiana Department of Workforce Development.

Indiana's labor force participation rate was 63.6%, higher than the national rate of 62.4%. The participation rate represents the percentage of Hoosiers age 16 and older who are either employed or actively seeking work. Indiana's total labor force was reported at 3,495,276.

Those not counted in the labor force include students, retirees, individuals unable to work due to illness or disability, and adults caring for children or other family members.

Total private employment in Indiana reached 2,849,500 jobs in December, a decrease of 5,800 jobs since September, the report stated.

Despite the overall decline, some industries posted job gains during the month, including:

Financial Activities, which added 800 jobs

All Other Industries, which gained 400 jobs

As of Dec. 31, 2025, there were 83,797 open job postings statewide. During the week ending Jan. 3, 2026, Indiana recorded 25,414 continued unemployment insurance claims.

Individuals seeking employment, training, or career resources can visit in.gov/dwd/job-seekers for more information.