State unemployment rate declines 0.4 to 10.8 percent

[June 18, 2010]  CHICAGO -- The Illinois seasonally adjusted unemployment rate dropped 0.4 point to 10.8 percent in May, according to data released Thursday by the Illinois Department of Employment Security. The over-the-month decline is the largest since October 1983. The three-month moving average decreased 0.2 point to 11.2 percent in May, its first decline since November 2006. Illinois has added 70,000 jobs so far this year.

"Five months of positive job growth coupled with two consecutive months of declines in the unemployment rate offer reasons for cautious optimism," said Maureen O'Donnell, director of the Department of Employment Security. "Long-term job growth might include periods that show flat or possibly increased unemployment rates as frustrated job seekers grow more hopeful about their job prospects."

Illinois added 16,700 jobs in May. It was the fifth consecutive month to record job growth. Although much of the growth is attributed to federal census employment, significant job growth continued in several major industry sectors.

Manufacturers added 2,400 jobs, the third consecutive monthly gain of more than 2,000 jobs and the sector's best showing since April 1995. Educational and health services added 1,900 new jobs, its fifth consecutive month-over-month gain. Professional and business services added 1,300 new jobs, its fourth gain in the last five months. This sector, up 18,700 jobs, leads all sectors in job growth thus far this year. However, the construction sector decreased 6,500, reflecting national trends possibly tied to the volatility in the housing market.

Illinois has added more jobs than its Midwestern counterparts so far this year, and its rate of job growth has outpaced the nation.

The unemployment rate is not the same measure as those collecting unemployment benefits. The unemployment rate identifies people who are out of work and seeking employment. Workers collecting benefits are counted separately. Individuals who exhaust their benefits or are ineligible would still be reflected in the unemployment rate if they are seeking employment.

The Illinois Department of Employment Security administers federally funded employment services and unemployment insurance through its nearly 60 offices, including the Illinois workNet Centers. IDES also receives federal grants to provide and analyze labor market statistics and information.

(See tables: Seasonally Adjusted Unemployment Rates; and Illinois Seasonally Adjusted Nonfarm Jobs – by Major Industry)

[Text from Illinois Department of Employment Security file received from the Illinois Office of Communication and Information]