The job market in Indianapolis and across the nation has slowed significantly, with employers posting fewer job openings than in the past year. In December, job openings in the nine-county Indianapolis area fell by 47% compared to the same period in the previous year. This decline is not indicative of a faltering job market, but a return to normal following the peak in demand for employees in mid-2022 due to pandemic-related economic conditions. According to data from labor-market analytics firm Lightcast, job postings soared above 100,000 for a 20-month period from April 2021 to November 2022, surpassing all previous records.

Despite the decline in job postings, the unemployment rate in Indiana remains relatively low, at 3.7% in November, slightly up from October’s 3.6%. Economists consider an unemployment rate under 5% as full employment. This blend of a slowed job market and maintained low unemployment suggests the Federal Reserve’s strategy of raising interest rates to rein in inflation without causing a recession has worked.

The slowed job market has caused employers to be more selective when hiring. Companies are now more focused on ensuring they hire the right person for the job, rather than rushing the recruitment process. Most companies that are hiring are filling vacancies left by departing employees, rather than adding new positions.

Certain sectors like the tech industry have been hit harder due to the larger tech industry downturn that started in mid-2022. Companies are now more conscious in their hiring procedures, taking time to establish the skills they most require in potential hires.