BLOOMINGTON — Bloomington is known across the state as the home of Indiana University. However, Indiana Business Research Center executive director Phil Powell believes the city needs to think beyond campus to economically thrive.
"When we take a look at how 2025 has been for Bloomington, the news is rough," Powell said during his presentation at the annual Bloomington Futurecast.
Powell and other economists within the IU Kelley School of Business shared their analysis with Bloomington's business leaders. According to Powell, Bloomington's average wages are down six percent in 2025, even as they increased in the United States and in Indiana.
"A lot of the higher-paying jobs at Indiana University have gone unfilled or have not been re-hired," Powell said. "A lot of this is tied to forces outside of its control, including cuts to research dollars and skepticism over the role of higher education."
While Indiana University is dealing with challenges, Powell said there is one reason to feel optimistic about the Bloomington economy.
"Their growth rate in new businesses in Bloomington was triple the national rate," Powell said. "I think we have some momentum there even while the university is navigating a tough environment."
Powell highlighted the Trades District for being a place where Bloomington's entrepreneurs can refine their business plans.
"You get all the support around you to start to grow that business slowly," said Mike Trotzke, who operates his venture capital firm Paragraph within the Trades District. "You get to talk to other founders and work together."
Trotzke believes the connections happening inside the Trades District can make Bloomington a boomtown for start-up businesses.
"Having the infrastructure to pursue your dreams brings more people to Bloomington, grows the overall economy, creates jobs, and creates a successful environment," Trotzke said.
The Indiana Business Research Center will continue its Futurecast economic outlook tour throughout other cities in the state. The panel will visit Columbus on Wednesday and Johnson County on Thursday.
—
Taj Simmons the In Your Community reporter for Monroe and Morgan counties. He joined WRTV in August of 2023. The Oakland, CA native is not a Hoosier by birth, but is excited to learn all about the area and tell the stories of the people who make this state feel like home. Share your story ideas and important issues with Taj by emailing him at taj.simmons@wrtv.com.
