In addition, Professional and business services accounted for 18 percent of the total Indiana GDP growth while Health care and social assistance added 12 percent to the total. Finance, insurance and real estate contributed another 9 percent of the Indiana total where nationally this sector equaled nearly 20 percent of the nation’s GDP growth in 2013. Indiana also lagged the U.S. in retail and wholesale trade, transportation and information.
One final note: The data released last week included revised numbers for the compensation of workers. Although 2013 data are not yet available, we have fresh figures for 2012 and earlier years. Those data show Hoosier workers were paid $51 of each $100 of GDP in 2012 compared to $55 in 2003. As such, our rank in the nation fell from 31st in ‘03 to 37th in ‘12. All states in the Great Lakes region, plus Kentucky, out-ranked Indiana.
What is it about business in Indiana that our workers contribute less to total output than the workers in our neighboring states?
Morton J. Marcus is an economist, writer and speaker formerly with the Kelley School of Business at Indiana University. He can be reached at firstname.lastname@example.org.