It appears hard times are here to stay, at least for now.

On a day when national unemployment figures topped 10 percent for the first time in 26 years, Indiana Gov. Mitch Daniels announced that the state will be forced to cut another $300 million to $400 million from its budget.

The new cuts mean that state employees, who’ve already been hit hard in recent years, will not receive pay raises. State agencies will have to cut another 5 percent from their budgets, on top of an earlier 5 percent reduction. State building projects will be put on hold.

Daniels’ moves were prompted by another shortfall in projected revenue. In October, the state collected $46 million less than originally forecast. Only four months into its two-year budget, the state has fallen $309 million short of expectations.

Indiana, of course, is hardly alone in being forced to confront shrinking revenues. From New York to California, states not only have cut services but also increased a variety of taxes.

Daniels insists, and rightly so, that Indiana must avoid the later option. With the United States continuing to shed jobs — the nation lost positions for the 22nd straight month in October, the longest streak in 70 years — tax increases would further drain vitality from the economy.

More bad news on the job front: If the federal government were to count Americans forced to settle for part-time employment or those so discouraged that they have given up looking for work, the unemployment rate would spike to 17.5 percent.

Many economists are pessimistic about a quick turnaround, even though the recession, at least statistically, appears to have ended in the third quarter. The unemployment rate is expected to rise next year, eventually reaching 10.5 percent. Analysts have dusted off the phrase "jobless recovery’’ to describe the months ahead.

How should Indiana leaders respond if tough times continue to linger? No easy choices remain. Layoffs are a possible option, but the state’s work force is already thin in some important areas; cuts in education funding would be hard to accept at a time when Indiana must invest in its economic future; universities likely would pass on revenue losses to students and families through higher tuition and fees. The one bit of solace is that Indiana still has a sizable reserve. The state is quickly nearing the time when dipping into that money, at least partially, appears to be necessary.