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OCTOBER
JOBS REPORT: +2,200 JOBS, BUT WORKFORCE DROPOUT AND UNEMPLOYMENT RISE
Illinois Policy Institute
New IDES data show that Illinois’ overall
jobs growth was weak for October. While the greater Chicago area had
tepid jobs growth over the year, the rest of the state lost jobs.
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 Though Illinois showed a net gain of 2,200 payroll jobs in October, the state’s
workforce shrank for the sixth month in a row, according to a Nov. 17 economic
release from the Illinois Department of Employment Security, or IDES. The state
unemployment rate rose to 5.6 percent from 5.5 percent because the number of
unemployed Illinoisans increased by 6,100.
The bright spot in Illinois’ October payroll jobs report was a gain of 4,800
jobs in professional and business services. Manufacturing also showed a gain of
1,600 jobs, although the September number for manufacturing was revised downward
by 1,000. Illinois had large job losses in construction (-3,300) and other
services (-3,100) in October.
illinois october jobs report
Bureau of Labor Statistics, or BLS, officials also made substantial revisions to
the September jobs report. The overall number of jobs gained in September was
raised to 11,500 from 7,400 jobs. Under the surface, there were significant
revisions upward to September’s government job gains (revised upward by 4,700)
and education and health jobs (revised upward by 3,100). BLS, though, made
significant revisions downward for leisure and hospitality job losses (revised
downward by 1,500) and manufacturing job losses (revised downward by 1,000).
The household portion of the survey on which the IDES numbers are based showed
that Illinois had more workforce dropout in October, and the number of
unemployed rose. Because 7,300 fewer Illinoisans were employed on the month, the
workforce shrank by 1,200, and the number of unemployed increased by 6,100. As a
result of the month’s higher unemployment, Illinois’ unemployment rate rose to
5.6 percent from 5.5 percent.
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 Trends in different regions of Illinois shed light on the overall
state job numbers. The new IDES data show weak overall state jobs
growth in October, but the previous year of local data (September
2015 – September 2016) show an uneven distribution of job gains and
losses. While the greater Chicago area had tepid jobs growth over
the year, the rest of the state lost jobs.
Downstate communities that rely on manufacturing and industrial
occupations suffer under a tax and regulatory environment that is
especially costly for employers in these kinds of fields. Illinois’
uncompetitive business climate affects hiring in industries such as
manufacturing much more than it does in other sectors. This drives
down well-paying job opportunities in the downstate communities that
depend on them. On the other hand, the greater Chicago area service
sector industries continue to do some hiring, if at a relatively
slow rate compared with other parts of the country.
Illinois’ tax and regulatory policies hurt Illinoisans throughout
the state – but they are especially unfair to downstate communities.
Illinois needs tax and regulatory reform to unleash economic growth
and allow all areas of the state to thrive.
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