Indiana's job market started 2026 on a strong note, with the state's unemployment rate sitting at a healthy 3.4% in January—nearly a full percentage point lower than the national average of 4.3%, according to the latest data from the Indiana Department of Workforce Development (DWD).
The state also continues to outpace the nation in labor force participation. Indiana’s rate sits at 63.5%, compared to the national rate of 62.5%. This figure represents the percentage of Hoosiers 16 and older who are working or actively seeking employment. (Those not in the labor force primarily include students, retirees, individuals unable to work due to disability or illness, and adults managing childcare needs.) Currently, Indiana’s total labor force stands at 3,503,632.
Locally, Marshall County is performing exceptionally well, recording a 2.9% unemployment rate for January. This places Marshall County at 69th out of Indiana's 92 counties (with higher rankings indicating lower unemployment).
Looking at the surrounding region, unemployment rates vary significantly. Starke County is number two on the list with an unemployment rate of 4.8%. Fulton County is tenth on the list with a rate of 4.0%, and LaPorte County follows closely behind at fourteenth with a rate of 3.9%. St. Joseph County is thirty-second on the list with an unemployment rate of 3.4%, while Kosciusko has the same rate as Marshall…2.9% and is ranked sixty-eighth. Pulaski County has the lowest unemployment rate in our region, with a 2.8 ranking, placing it seventy-sixth of the ninety-two counties in the state.
Statewide, Howard County topped the list with the highest unemployment rate at 4.8%, while Dubois County boasted the lowest rate in Indiana at just 2.3%.
Indiana's private sector saw robust growth to start the year. Total private employment reached 2,831,400 in January 2026, an increase of 10,200 jobs since December.
The industries driving this monthly job growth included:
- Professional & Business Services (+6,800)
- Construction (+2,700)
- Private Educational & Health Services (+2,100)
- Trade, Transportation & Utilities (+1,700)
The job market remains highly active for those seeking employment. As of January 31, 2026, there were 85,672 open job postings throughout the state, compared to 27,470 continued unemployment insurance claims filed by the week ending February 7.
Individuals looking for work, training, or career information are encouraged to visit the DWD's resource portal at in.gov/dwd/job-seekers.
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