(Indianapolis, Ind.) – Indiana’s unemployment situation did not improve in June, but it did not get much worse either.

New numbers released this week by the Indiana Department of Workforce Development shows statewide unemployment last month was 10.1 percent, up from 10.0 in May.

It’s the first time in years, Indiana did not have the lowest rate among its neighbors – that went to Kentucky at 10.0, down from 10.4 in May. 

Illinois’ unemployment was 10.4 percent last month, followed by Ohio at 10.4, and Michigan at 13.2.

"Indiana's economy added thousands of jobs in retail, manufacturing and finance, but those gains did not overcome a drop in hiring by temporary staffing companies," said Mark W. Everson, Commissioner of the Indiana Department of Workforce Development. "We hope this begins a trend of temporary jobs turning to permanent positions in mainstay Hoosier industries such as transportation and manufacturing."

According to the department, Indiana businesses added 3,600 permanent jobs, but the loss of temporary staffing jobs in Professional and Business Services (-4,700) resulted in total private sector employment dropping 1,100. Sectors reporting significant over-the-month employment changes include: Trade, Transportation, & Utilities (4,400), Manufacturing (2,100), Financial Activities (800), Leisure and Hospitality (-2,700) and Construction (-400). The U.S. Census accounts for the change in Government employment (-3,600) and led to a decline of 4,700 in total non-farm employment.

Indiana's private sector has added 46,600 jobs this year.  The state’s rate of private sector job growth for the year remains two percent, over three times the national rate of 0.6. The chart below shows the unemployment rates for the U.S., Indiana and our surrounding states.

Southeast Indiana Non-Seasonally Adjusted Unemployment

Data Source: Indiana Department of Workforce Development