State unemployment goes up 0.2%

[June 17, 2011]  CHICAGO -- As expected, the Illinois seasonally adjusted unemployment rate in May increased 0.2 points to 8.9 percent. The increase follows 15 months of declining unemployment rates and was expected because slight up-and-down movements in the rate and the number of jobs created naturally occur in an economic recovery, according to the Illinois Department of Employment Security.

The national unemployment rate also increased in May, up 0.1 point to 9.1 percent. The Illinois rate has been equal to or below the U.S. rate for eight consecutive months. Illinois' three-month moving average remained at 8.8 percent in May, unchanged from April and the state's lowest average since March 2009.

"Illinois added more than 8,000 jobs in May, continuing the long-term trend of a healing economy, and reflects successful efforts to grow jobs," said Jay Rowell, IDES acting director. "Just as we expected the unemployment rate would tick upward at times during our recovery, we know job-creation must continue, and individuals should take advantage of the state's workforce training network so they can improve their skills and be part of the economic growth."

Illinois added 8,200 jobs in May. The three-month moving average of seasonally adjusted payroll employment shows 6,600 additional positions for March through May. The three-month context better depicts trends in the labor market by offsetting fluctuations in monthly payroll estimates. Since January 2010, when Illinois employment resumed after the national recession, Illinois has added 107,700 net new jobs. Leading sectors are professional and business services, up 39,900; educational and health services, up 28,100; trade, transportation and utilities, up 25,600; and manufacturing, up 19,900. That represents 1.9 percent job growth, compared with the nation's 1.4 percent.

In May, the number of unemployed individuals rose for the first time since January 2010, increasing 9,800, or 1.7 percent, to 585,000. Total unemployed has declined 155,100, or 21.0 percent, since January 2010, when the state unemployment rate peaked at 11.2 percent.

The unemployment rate identifies those who are out of work and seeking employment. Individuals who exhaust their benefits, or are ineligible, still will be reflected in the unemployment rate if they actively seek work.

The IDES supports economic stability by administering unemployment benefits, collecting business contributions to fund those benefits, connecting employers with qualified job seekers and providing economic information to assist career planning and economic development. It does so through nearly 60 offices, including Illinois workNet centers.

(See statistics.)

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