Indiana Reports Record Economic Results for 2025

Indiana recorded a record-setting year for its economy in 2025, according to a release from the Office of Governor Mike Braun. The results reflect higher wages, reduced incentive costs, region-led development, and continued momentum in entrepreneurship and workforce investment.

Governor Braun described 2025 as a year focused on job quality, fiscal discipline, and aligning state efforts around clear economic priorities.

Key Economic Results from 2025

The state reported several measurable outcomes:

• Average wages for newly committed jobs reached $40.06 per hour, the highest on record
• Wages increased 10 percent year over year, outpacing national growth
• Nearly 11,000 new jobs were committed statewide
• Cost per incentivized job declined by 68 percent, resulting in $349 million in taxpayer savings
• Indiana outperformed both the nation and the Midwest in real GDP growth and employment trends
• State officials attribute these results to early executive actions that raised standards for job quality and reinforced a region-led approach to economic development.

Region-Led Economic Development

Indiana’s economic strategy continues to rely on a region-led growth model supported through the Regional Acceleration and Development Initiative (READI). In 2025:

• 779 READI projects were underway across the state
• $1.25 billion in public investment was deployed
• More than $19 billion in private-sector investment was leveraged
• Every dollar awarded through READI generated a reported 20-to-1 return

Projects include redevelopment of former industrial sites, revitalization of blighted properties, new innovation districts, and expanded workforce infrastructure. State leaders say these investments are intended to translate long-term regional planning into tangible economic outcomes.

Workforce Investment

Workforce development remained a central focus through Power Up Indiana. More than 30,000 employers across all 15 economic regions participated in training and upskilling initiatives aimed at filling higher-skill roles locally and improving employee retention.

The employer-driven model emphasizes advancing existing workers without requiring relocation, supporting both business competitiveness and community stability.

Entrepreneurship Trends

Entrepreneurship continued to accelerate in 2025, with Indiana posting significant gains in national rankings:

• 12th nationally for the rate of new entrepreneurs, up 31 spots since 2021
• Top 5 nationally for startup and small business survival
• Highest level of new business formation in the state since 1998

Small businesses employ nearly half of Indiana’s workforce, reinforcing their role as a key driver of the state’s economy.

Looking Ahead to 2026

State officials say the foundation established in 2025 positions Indiana for continued growth, with an emphasis on higher wages, disciplined investment, region-led development, and workforce advancement as the state enters 2026.

More information is available in the Indiana Office of Commerce 2025 Commerce Report.