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CHICAGO
AREA SEES SLOW JOBS GROWTH, DOWNSTATE SUFFERS CONTINUED JOB LOSSES
Illinois Policy Institute
Metropolitan jobs data shows that from
October 2015 – October 2016 the greater Chicago area is up +33,500 jobs
while the rest of the state is down -2,700 jobs. Measured since before
the Great Recession, from October 2007 – October 2016, the greater
Chicago area is up 110,100 jobs while the rest of the state is down
-42,700 jobs.
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 Illinois’ October metro jobs report shows a continued divergence between the
greater Chicago area, where service-sector jobs dominate, and downstate
communities that rely more on production-sector jobs. Over the past year
Illinois added 30,800 jobs, according to metro jobs data from the Illinois
Department of Employment Security. These modest jobs gains have been
concentrated in the northeast portion of the state, with the greater Chicago
area adding 33,500 jobs and downstate communities losing 2,700 jobs; adding up
to the state’s net addition of 30,800 jobs.
The greater Chicago area showed relatively weak job growth over the year. The
addition of 33,500 jobs is equal to an annual growth rate of 0.8 percent.
However, some job growth is better than none, which is especially evident in
comparing the greater Chicago area with downstate communities. The
Chicago-Naperville-Arlington Heights metro division added 23,800 jobs over the
year; the Elgin metro division added 5,100; and the Illinois portion of the
Lake-Kenosha metro division added 4,600.
Downstate communities have borne the brunt of economic suffering in the Land of
Lincoln. On top of the state’s notorious anti-industrial tax and regulatory
policies, global competition and weak demand for products from companies like
Caterpillar have left downstate communities struggling. Illinois’ slow economic
growth and unattractive business climate are thwarting the basic human need for
productive employment in many downstate communities. Half of downstate
communities are down jobs over the past year.
Looking over the Great Recession era, the state of Illinois is up 67,400 jobs
compared to before the recession. However, the division between the greater
Chicago area and the rest of Illinois is stark. Since October 2007, the greater
Chicago area is up 110,000 jobs; while the rest of the state is still down
43,000 jobs.
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 Illinois was one of the last states to recover the total number
of jobs it lost during the Great Recession, and the Land of Lincoln
still has fewer jobs than in 2000. The metro jobs data shows that
for a large swath of the state there has not yet been a recovery
from the Great Recession. Nine Illinois metro areas along with the
combined non-metro areas of downstate Illinois all still have fewer
jobs than they did in October 2007, before the Great Recession.
illinois unemployment rate
Industrial and production communities in downstate Illinois are
suffering while the service-sector job engine of Chicago is staying
afloat, though not thriving. Global changes are exacerbating some of
the advantages for larger cities and some of the disadvantages for
more rural communities like downstate Illinois. But Illinois’
regional problems are also driven by policy imbalances emanating
from Springfield. Issues like high property taxes and high workers’
compensation costs have a much more painful effect on the production
sector economy like manufacturing than on service sector jobs like
business services.
Bad policies that have been coming from Springfield for decades hold
back economic growth for the entire state, driving communities to
despair. The result of Illinois’ anti-jobs environment is to thwart
good job opportunities and accelerate out-migration. Chicago-based
Democratic legislative leaders have been writing industrial policy
for Illinois but have ignored the devastating fact of whole cities
with shrinking jobs bases. The pain delivered from Springfield
lawmakers can only be undone by policy changes and robust economic
growth.
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