February unemployment rate falls to 8.9 percent

Rate falls for 13th consecutive month

[March 18, 2011]  CHICAGO -- The seasonally adjusted unemployment rate in Illinois fell for the 13th consecutive month, dropping 0.1 to 8.9 percent in February, according to preliminary data released Thursday by the Illinois Department of Employment Security. The last time the state rate was below 9.0 percent was two years ago, in February 2009. The national February rate also fell 0.1 to 8.9 percent.

"The Illinois economy is steadily building momentum. Our state has recorded 13 consecutive months of falling unemployment rates after nearly two years of increases," said IDES Director Maureen O'Donnell. "Although up-and-down movement in the rate still is possible, the trend shows the Illinois economy is improving and moving in the right direction."

The seasonally adjusted payroll employment estimate for February increased 17,600. The three-month moving average of payroll employment gain of 12,200 net jobs for February is more indicative of the current job market. Below-trend seasonal hiring during the fourth quarter of 2010 produced overstated estimates of job loss in November and December. Additionally, federal changes in data estimation have caused larger monthly fluctuations.

Since January 2010, when Illinois employment growth resumed after the national recession, Illinois has added 85,100 net new jobs. Leading sectors are professional and business services, up 36,100; educational and health services, up 26,700; trade, transportation and utilities, up 17,600; and manufacturing, up 9,800. That represents a 1.5 percent job growth, compared with the nation's 1.0 percent. When considering all workers, including independent contractors and the self-employed, Illinois has added 147,600 positions since January 2010.

In February, the number of unemployed individuals fell for the 13th consecutive month, dropping 10,700, or 1.8 percent, to 588,500, the lowest level since February 2009. The total of unemployed has declined 151,600, or 25.8 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.

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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]