Indiana University has been the backbone of the Bloomington economy for some time, helping the community avoid the hardships other cities have faced.
But due to funding cuts at the state and federal levels and changes to the property tax laws in the state, that is no longer the case.
Layoffs at Indiana University have continued into 2026. And Novo Nordisk, the pharmaceutical giant in town, recently announced 400 layoffs. Add in the high cost of living in the city and Bloomington’s economic outlook looks a little bleak.
Read more: Private businesses will bolster Bloomington after IU cuts
Last year, wages in Bloomington fell by 6.2 percent. Statewide, they grew by 5.6 percent.
And in its 2026 Futurecast, the Indiana Business Research Center at IU predicted a less than 1 percent growth for Bloomington and the surrounding area this year.
A market research survey ranked Bloomington below Lafayette and South Bend in “salary and income, job market strength, quality of life and amenities, and industry presence.”
Read more: Bloomington at a crossroads, with urgent need to grow the economy
Former Bloomington mayor John Fernandez, now the CEO of Amplify Bloomington, said the city needs to lean into its quality of life and amenities. But, he said, the city needs to invest in attracting and retaining the 25- to 50-year-old workforce.
On this week’s Noon Edition, we’ll be discussing issues impacting Bloomington’s economic outlook and what can be done to ensure a healthy, growing economic forecast going forward.
Join us on the air by calling 812-855-0811 or toll-free at 1-877-285-9348. You can also send questions for the show to news@indianapublicmedia.org.
You can also record your questions and send them in through email.
Guests
John Fernandez, CEO, Amplify Bloomington
Carol Rogers, Director, Indiana Business Research Center
Eric Spoonmore, Executive Director, Greater Bloomington Chamber of Commerce
