Central Indiana’s labor market remained steady in August, with low unemployment and continued job growth in construction and health care. These trends offer insight into where employers may need talent and where Indianapolis residents can find opportunities to build their careers.
The following highlights from the Indiana Department of Workforce Development’s recently published August 2026 Labor Market Review provide insight into labor market conditions affecting Marion County (Economic Growth Region 12) and surrounding counties, including Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, Morgan and Shelby counties (Economic Growth Region 5).
Understanding these trends helps EmployIndy and its partners connect residents with career opportunities, support employers’ workforce needs, and align training with the skills local industries need.
Key Findings
1. Unemployment remained stable across Central Indiana
Marion County reported a 3.6% unemployment rate, unchanged from July and down from 3.9% in August 2025. Marion and Madison counties shared the highest unemployment rate among the nine counties reviewed. Collectively, Region 5 posted a 3.3% unemployment rate in August, with Boone County having recorded the region’s lowest unemployment rate at 2.8%.
2. Marion County’s labor force remained strong
Marion County’s labor force remained above 550,000 residents in August 2026, with more than 530,000 employed. Compared with August 2025, the county saw an increase in employment and a decline in unemployment, reflecting continued workforce participation and labor market stability despite ongoing economic shifts.
3. Indiana continues to outperform the nation and neighboring states
Indiana’s seasonally adjusted unemployment rate was 3.3% in August, compared with the national rate of 4.1%. Indiana matched Ohio for the lowest unemployment rate among neighboring states, while Illinois and Kentucky each reported 4.7%, and Michigan reported 5%.
4. Construction and health care continue to show employment strength
While total nonfarm employment in the Indianapolis metropolitan area decreased 1.1% year over year, several industries posted employment gains. Construction employment increased 7% from August 2025, adding 5,000 jobs. Healthcare, education, and social services collectively added 3,600 jobs over the year, illustrating a continued demand for human-centered occupations.
5. Manufacturing employment remains steady despite broader labor market shifts
Manufacturing employment remained unchanged year over year at 97,400 jobs in the Indianapolis metropolitan area. At the same time, goods-producing industries overall increased by 5,100 jobs, reflecting continued strength in construction and related sectors despite fluctuations in transportation and warehousing employment.
What this means for Indianapolis employers
Low unemployment across Central Indiana means employers may continue facing competition for talent, particularly in industries experiencing job growth. These conditions reinforce the value of planning ahead, developing existing employees, and building connections with organizations that can help meet workforce needs.
Labor market data can help employers identify emerging talent needs, explore training opportunities, and work with education and workforce partners to build stronger career pathways.
“Low unemployment reinforces the importance of employers investing in the growth of their current workforce while building strong connections to the next generation of talent,” said Ken Clark, president and CEO at EmployIndy. “The growth we’re seeing in construction and health care highlights the value of these investments and the opportunities to connect more residents with promising career pathways. In partnership with EmployIndy, businesses can help shape training that meets their needs while creating pathways for more Indianapolis residents to build lasting careers.”
What this means for Indianapolis residents
Job growth in industries such as construction and health care can create opportunities for residents looking to begin a career, develop new skills, or pursue advancement. Career navigation, training, and apprenticeships can help residents explore these pathways and identify the next steps toward their goals.
Through WorkOne Indy, residents can access career guidance, training resources, and connections to employment opportunities at no cost. Financial assistance may also be available for eligible training programs.
EmployIndy’s perspective
August’s labor market data points to a relatively stable regional workforce, even as employment trends vary across industries. For Indianapolis, these findings reinforce the importance of connecting residents with opportunities in growing industries and helping employers prepare for their changing workforce needs.
Growth in construction and health care creates opportunities to strengthen connections between employers, career services, training providers, and residents. Industry-recognized credentials, apprenticeships, and other career-connected learning opportunities can help people develop in-demand skills and pursue pathways to economic mobility.
As Indianapolis’ workforce development board and lead workforce convener, EmployIndy uses labor market insights to inform strategic investments, strengthen employer partnerships, and connect residents with career resources and training opportunities.