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ILLINOIS
SEES LARGEST INCREASE IN NEW UNEMPLOYMENT CLAIMS IN THE NATION
Illinois Policy Institute/
Bryce Hill
76,338
Illinoisans filed new unemployment claims during the week ending Oct.
31, up more than 23,000 from prior week. |
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 New
weekly initial unemployment claims rose more in Illinois than anywhere else in
the nation for the week ending Oct. 31 compared to the prior week.
As all areas of Illinois begin implementing new COVID-19 mitigation measures and
Gov. J.B. Pritzker begins restricting economic activity again, more than 76,338
Illinoisans filed new unemployment claims. That number is 23,200 more than the
week ending Oct. 24.
Meanwhile, new unemployment claims slightly decreased
nationwide (-543) as the rest of the nation’s economy continues to recover from
the COVID-19 related downturn. New data from the Bureau of Labor Statistics
reveals that during October the nation added 638,000 jobs and the national
unemployment rate continued to decline to 6.9%.
While the national labor market has been steadily recovering since April, adding
jobs and dropping the unemployment rate since then, Illinois’ recovery has begun
to falter in recent months. Illinois’ September jobs report, which measured
changes from mid-August to mid-September, revealed that Illinois saw the largest
decline in jobs in the nation during the month. In the time since, Illinois has
experienced rising unemployment claims in six out of the seven weeks, with
289,609 Illinoisans filing new unemployment claims during that time.
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This data indicates the state has likely
experienced further job declines, which will be revealed in the next
monthly jobs report on Nov. 19. The combination of rising
unemployment claims and declining payroll jobs indicates Illinois’
economy could be faltering again as Illinois implements new COVID-19
restrictions, even as the rest of the nation continues to recover in
the wake of the COVID-19 pandemic and state-mandated lockdowns.
Luckily, Illinois voters rejected a $3 billion
progressive income tax hike on Nov. 3, which would have raised taxes
on more than 100,000 of the state’s largest job creators – small
businesses. Economists argue against raising taxes during a
recession, so lawmakers now must reject Pritzker’s call for a 20%
income tax hike on everyone.
Instead, Illinois can improve its fiscal situation and continue to
provide core services mainly by implementing constitutional pension
reform. There is also the additional possibility of the state
receiving federal aid by reforming state finances, if congress
adopts the Taxpayer Protection Act.
Rather than just throwing more money into a black
hole of pension debt and deficits, constitutional pension reform and
the Taxpayer Protection Act would offer overburdened Illinois
taxpayers a path to declining debt, lower taxes, more effective
state government and a more sustainable recovery.
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