A recent report from the Kelley School of Business shows that the annual economic forecast for 2020 expects to see Indiana increase with about 1.25% growth, trailing the 2% national rate.

Economists say that is because Indiana remains the state with the highest percentage of jobs in manufacturing and those companies are having trouble hiring more workers.

The state’s tight labor market is one of the reasons that holds down growth in economic output and employment. The forecast expects growth in the Indianapolis area of between 1.5% and 2% as it is doing better at attracting talent and investment.