SELLERSBURG, Ind. (WDRB) -- The unemployment rate in Indiana is significantly lower than surrounding states, including Kentucky, and that's partly because businesses in southern Indiana are now offering additional perks to compete for workers.  

Neil and Patty's Fireside Bar and Grill in Sellersburg is one business feeling the effects of the low unemployment rate.

“We had to increase our wages in what we are paying people just to be able to stay competitive,” said Caisey Overbey, general manager of the restaurant.

The family-owned business says it is also offering flexible scheduling.

Indiana's unemployment rate is 3.9 percent. That is lower than every neighboring state, including Kentucky, where 5 percent of the population is unemployed.

Wendy Dant Chesser, President of One Southern Indiana, said companies are offering everything from childcare to tuition reimbursement.

“I’d say a lot of employers are being creative, not only in the pay structure, but in things like flexible work schedules, in the benefits programs that they offer,” Dant Chesser said.

The labor participation rate is at historically low levels as fewer people are willing or able to work.

Businesses are also concerned about more people reaching retirement age and finding enough worker to replace them.

Dant Chesser says that can be especially challenging for highly skilled positions.

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