Indiana’s preliminary seasonally-adjusted unemployment rate rose by 0.3 percent in December to 9.9 percent (7.8 percent in December 2008), the Indiana Department of Workforce Development (DWD) reported today.

“Indiana and its Midwest neighbors each reported increases or remained virtually flat in December,” DWD Commissioner Teresa Voors said in a statement released this morning. “The two largest factors in the December Unemployment Report are a drop in construction employment, possibly attributed to weather, and an increase in the number of unemployment claims following eight straight months of decline.

Seasonally-adjusted total non-farm employment in Indiana fell by 7,900 jobs in December, the statement said. Sectors reporting employment declines included construction (-4,200), trade, transportation, and utilities (-2,500), leisure and hospitality (-1,400), and manufacturing (-1,100). Financial activities (+1,500) and professional and business services (+1,200) both reported employment gains.

Indiana and Ohio each posted an increase in unemployment of 0.3 percent, with Ohio’s rate now at 10.9 percent. Illinois increased by 0.2 percent to 11.1 percent; Kentucky’s by 0.1 percent to 10.7 percent. Michigan’s rate decreased by 0.1 percent to 14.6 percent.

The national unemployment rate remained unchanged in December, at 10.0 percent.