|
 While
the rest of the nation added jobs for the seventh consecutive month in November,
Illinois lost 20,000 from mid-October to mid-November, according to data
released Dec. 17 by the Illinois Department of Employment Security. This is the
second time in the past three months Illinois shed jobs as the rest of the
nation’s economy recovered.
The bulk of the losses came from the leisure and hospitality industry, which
lost 27,400 jobs during the month. These losses come amid the statewide ban on
indoor dining implemented by Gov. J.B. Pritzker, which took effect Nov. 4. It is
likely the industry will continue to suffer jobs losses for the foreseeable
future, as the ban remains in place and Illinois has since implemented further
mitigation protocols that limit economic activity.
The manufacturing sector, which was also one of the most affected industries by
mitigation protocols, also shed jobs, losing 2,900 jobs. Educational and health
services lost 2,000 jobs; financial activities shed 1,900 jobs; while
information sector jobs declined by 400, and government payrolls also shrank by
400.
Meanwhile, some job sectors continued their recovery in Illinois. Trade,
transportation and utilities added 6,500 jobs; professional and business
services grew payrolls by 5,300; construction jobs increased by 2,300; and other
services added 900 jobs to payrolls.
While some industries have been able to extend their recovery, employment across
all industries remains well below pre-pandemic levels. The Illinois recovery
appears to be stalling as the state has been shedding jobs again in recent
months. Illinois’ unemployment rate of 6.9% also remains above the national
average of 6.7%, which is no surprise as the rest of the nation has enjoyed
seven months of uninterrupted jobs growth during its recovery.
[
to
top of second column] |
Although it looks like there may be some hope with
a COVID-19 vaccine being dispersed throughout the state of Illinois,
there is still a painful economic recovery ahead. Making matters
worse for already-struggling businesses, Pritzker is continuing to
pursue new taxes, even after voters soundly rejected his progressive
income tax hike Nov. 3.
The governor has suggested he may now be in favor
of raising the state’s flat income tax or closing “loopholes” to
raise more revenue, although exactly which loopholes he is referring
to remains unknown. As the state’s economy continues to struggle
with the COVID-19 downturn – and to a much greater extent than the
rest of the nation – it is imperative lawmakers work to avoid the
harm to businesses and jobs that tax hikes would create.
Economists argue against raising taxes during a recession, so
lawmakers now must reject Pritzker’s call for a 20% income tax hike
on everyone to avoid damaging the jobs market even more.
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 at 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.
Click here to respond to the editor about this article
|
