|
 The data covers the last two weeks of February and first two
weeks of March, so it excludes the final two weeks of March when initial
unemployment claims in Illinois were hitting six figures each week. Still, the
new data revealed Illinois lost 34,100 non-farm jobs during the period – the
largest monthly decline since the Great Recession.
Leisure and hospitality was the sector with the most severe
losses as payrolls declined 15,000 (-2.4%) during the period, which the state
reports as “March.” The sudden decline in jobs was the most for the industry in
over 20 years and came as the state began taking precautions to prevent the
spread of COVID-19 and closed businesses deemed “non-essential.”
The only area of the economy that did not experience payroll declines was the
government sector, which added 1,000 jobs. Two hundred of those jobs came at the
federal level, while state and local government each added 400 positions during
the month.
Large declines in payrolls have also resulted in skyrocketing unemployment
claims. As of mid-March, the state’s non-seasonally adjusted unemployment rate
had jumped by 26%, going to 4.4% from 3.5%. In the weeks since then, an
additional 635,000 Illinoisans have made initial unemployment claims. This would
bring the state’s estimated real-time unemployment rate closer to 14.8%.
Even the real-time estimate is likely an underestimate. Many
Illinoisans are dropping out of the labor force entirely right now, and many
have still been unable to register for unemployment insurance with the state.
[ to
top of second column] |
Allowing for a robust recovery
As record numbers of Illinoisans find themselves suddenly out of a
job, and no word yet from government leaders on when “non-essential”
business will be allowed to reopen, Illinoisans need certainty. A
simple way for legislators to provide more certainty and improve
chances of a strong labor market recovery would be to remove the
progressive income tax amendment from the Nov. 3 ballot.
Prior to the coronavirus outbreak, Illinois was
already shedding private sector jobs. Now, hundreds of thousands of
Illinoisans are finding themselves out of work. In order to ensure
as many of these jobs as possible can return, Illinois should work
diligently to avoid increasing taxes.
The progressive income tax rate structure passed by the General
Assembly would hike taxes on around 100,000 Illinois small business
owners who file as S-corps or partnerships, also known as
“pass-through” businesses. Small businesses are the economic engine
of the state – responsible for roughly 60% of new job creation.
Hiking their taxes would only serve to kneecap the economic recovery
after the pandemic.
Instead of pursuing an expensive and contentious ballot fight that
could end with tax hikes on Illinois small businesses at a terrible
time, lawmakers should listen to local entrepreneurs and withdraw
the question altogether.
Click here to respond to the editor about this article
|
