 Illinois lost 8,900 jobs in March and still has fewer jobs than in the year
2000, while businesses are creating more opportunities in neighboring states. A
new economic release from the Bureau of Labor Statistics shows that surrounding
states continue to outpace Illinois on the road to economic recovery and
prosperity.
Illinois’ economic weakness is a long-term problem that exacerbates the state’s
near-term financial crisis. The Land of Lincoln is increasingly falling behind,
as neighboring states have less debt, lower taxes, smarter regulations and
pro-growth approaches that allow their economies to prosper and residents to
find rewarding jobs.
Employers created 14,000 jobs in Illinois in the first quarter of 2017. This
jobs count compares well with those in neighboring states, but it doesn’t
compare well when adjusted for the size of each state’s economy. For example,
Illinois’ labor force is twice the size of Indiana’s, and therefore requires
twice as many jobs just to keep up in terms of relative employment
opportunities. That means it’s more important to measure Illinois’ performance
in terms of percentages, as opposed to the total number of jobs created.
To measure the percentage growth, Illinois’ gain of 14,000 jobs should be
considered in proportion to Illinois’ total workforce size. For example,
Illinois’ increase of 14,000 jobs represents a 0.23 percent gain, while
Indiana’s 10,700 jobs gain is a 0.34 percent increase for the Hoosier State.
Relative to the size of its economy, Indiana’s jobs creation was better than
Illinois’ in the first quarter of 2017, and has been for a long time.
Illinois has gained more jobs than most nearby states so far in 2017. But
Illinois is the third-worst among states in the region in terms of percentage
growth for the first quarter of 2017, outperforming only Michigan and Missouri.
Manufacturing woes continue: Illinois down 800 manufacturing jobs in first 3
months of 2017
Manufacturing has been a persistent sore spot in Illinois’ labor market, with
the state losing 5,000 manufacturing jobs in 2015 and 7,700 manufacturing jobs
in 2016. Illinois is down 800 manufacturing jobs in the first three months of
2017, with Michigan as the only nearby state to have losses so far in 2017.
It’s important to point out, however, that while Illinois lost manufacturing
jobs over the last two years, Michigan gained 17,200.
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Illinois’ economic weakness creates an opportunity deficit for
Illinoisans. For example, while manufacturing jobs have recovered
elsewhere in the region, Illinois has lagged behind due in part to
the anti-growth, anti-jobs taxes and regulations Illinois heaps on
manufacturers. Illinois has experienced only 2.8 percent growth in
manufacturing jobs since the bottom of the Great Recession. Nearby
states have left Illinois behind and have seen tens of thousands
more manufacturing jobs created than Illinois has.
Illinoisans are fleeing to states with more opportunity
Illinois also has fewer people working compared with before the
Great Recession, further revealing Illinois’ opportunity deficit.
Illinois’ unemployment rate is the same as it was before the Great
Recession. However, Illinois has 144,000 fewer people working
compared with its pre-recession peak, and a smaller labor force. One
of the major drivers of Illinois’ shrinking labor force is
working-age Illinoisans moving to other states.
Illinois’ neighbors have turned Illinois’ opportunity deficit into
their own opportunity gains. Over the Great Recession timeline, all
of Illinois’ neighbors have more people working, while Illinois has
fewer people working. This is not only because surrounding states
have experienced a broader economic recovery, but also because
working-age Illinoisans have flooded into those states over the last
decade.illinois manufacturing
Illinois’ bordering states have benefited from Illinois’
dysfunction, adding Illinois expatriates to their tax bases while
avoiding the policies that are leading Illinois into bankruptcy.
Illinois and its local governments are approaching insolvency in
financial terms. However, the deeper bankruptcy is a moral one – a
political system that drives away economic production and punishes
home ownership while rewarding political clout and cronyism.
State government needs an overhaul before Illinois’ machine politics
finally breaks the state’s finances. State taxpayers and homeowners
need a balanced budget that reins in government worker unions,
reforms pensions and includes legislation that fosters economic
growth.
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