National recession presses state rate to 11.3 percent

[March 10, 2010]  CHICAGO -- The Illinois seasonally adjusted unemployment rate for January was 11.3 percent, up from the revised December 2009 rate of 11.0 percent, according to data released Tuesday by the Illinois Department of Employment Security. The unemployment rate is at its highest level since August 1983.

"Although there are some signs the recession technically might have ended, there continues to be significant job pressures in Illinois and throughout the country," said Maureen O'Donnell, director of the Department of Employment Security. "Economic figures such as job growth and the unemployment rate are only illustrative when looked at in the broad picture of a trend and not a single month."

Preliminary Illinois data for January reflects job growth. However, January traditionally is a difficult month in which to capture employment data. Further, recent federal changes in data estimation might result in larger monthly fluctuations as the national economy struggles to improve. The three-month moving average of payroll employment in Illinois, a broader view of job creation, still shows job loss. Up-and-down movement in the number of jobs and the percentage of the unemployed is common in a national recession. Since the recession began in December 2007, the nation has lost 8.4 million jobs. Illinois has lost 407,000 jobs.

The national unemployment rate in January was 9.7 percent. It also was 9.7 percent in February. Illinois employment data for February will be released later this month. That is because monthly labor force data is revised each February to meet requirements set by the U.S. Bureau of Labor Statistics. Therefore, previous data, analysis and comments should be discarded because they might no longer be valid. The revisions, combined with benchmarking efforts for that same economic data, delay the January and February jobs and employment reports each year.

The unemployment rate is not the same measurement as those collecting unemployment benefits. The unemployment rate identifies those who are out of work and seeking employment, regardless if they are eligible for unemployment insurance. Workers collecting benefits are counted separately. Therefore, a person who exhausts or is ineligible for unemployment insurance still would 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 Non-farm Jobs – by Major Industry")

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