Expert says lack of monthly unemployment data could affect lawmakers, employers

The government shutdown not only impacts federal programs like food assistance, it also delays important workforce data like Indiana's monthly employment report. Each month, the Indiana Department of Workforce Development releases a report with the latest state and local labor market preliminary statistics.

The report highlights the state's unemployment rate and labor force participation rate, among other things. The unemployment rate is the percentage of people who are without a job, but are actively looking for work. While the labor force participation rate includes Hoosiers 16 and older who are either working or actively looking for work. The data is collected directly from the Bureau of Labor Statistics — where more than 2,000 employees were furloughed due to the government shutdown.

READ MORE:What does Indiana's monthly employment report measure? Here's what you should know

Alvin Velazquez teaches a course on labor law at Indiana University Bloomington. He said the lack of employment data could impact many people including lawmakers, economic planners and Hoosier employers.

"It makes it tricky to figure out whether or not the wages are competitive and whether they need to make adjustments to wages based on incoming data," Velazquez said.
 

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He said the delayed report could also affect union workers who are bargaining with their employers for higher wages.

"That would be harmful to them as well, or at least make it difficult for them to titrate what their wage demands should be in the markets that they're negotiating in.," Velazquez said.

The report is it is not a measure of the current labor market and the numbers are adjusted over time.

Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org.