Indiana establishes new unemployment indicators for job eligibility assessment

Indiana lawmakers have introduced Senate Bill 371, a significant piece of legislation aimed at addressing unemployment metrics and job suitability criteria in the state. Introduced on April 4, 2025, the bill seeks to refine how unemployment is measured and how "suitable work" is defined for individuals seeking employment.

The primary purpose of Senate Bill 371 is to establish clear indicators for determining when the state is experiencing high unemployment. Specifically, the bill sets a threshold of 6.5% for the average total unemployment rate, as reported by the U.S. Secretary of Labor, over a three-month period. If Indiana's unemployment rate exceeds 110% of the average rate from the same period in the previous three years, a state "on" indicator will be activated. Conversely, a state "off" indicator will be triggered if the unemployment rate does not meet the criteria for an "on" status.

In addition to these indicators, the bill introduces a new definition of "suitable work." For individuals classified as having good job prospects, suitable work will align with existing definitions under Indiana law. However, for those with less favorable job prospects, suitable work will be defined as any position they are physically and mentally capable of performing. Notably, the bill outlines conditions under which certain job offers may not be considered suitable, such as when the offered remuneration does not exceed the individual's average weekly unemployment benefits.

The introduction of Senate Bill 371 has sparked discussions among lawmakers and stakeholders regarding its potential impact on Indiana's workforce. Proponents argue that the bill will provide clearer guidelines for job seekers and enhance the state's ability to respond to economic fluctuations. However, some critics express concern that the new definitions may complicate the unemployment benefits system and create barriers for individuals seeking work.

As the bill progresses through the legislative process, its implications for Indiana's economy and job market remain to be seen. If passed, Senate Bill 371 could reshape how unemployment is addressed in the state, potentially leading to more effective support for job seekers during economic downturns. The bill is set to take effect on July 1, 2025, marking a pivotal moment in Indiana's approach to employment and economic stability.