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 An additional 44,814 Illinoisans filed for unemployment the
week ending June 6, bringing total new jobless claims to 1,244,942 since
COVID-19 began shutting down the economy, new U.S. Department of Labor data
shows.
The surge in claims during the initial closure of the state’s
economy continues to slow, however new weekly unemployment claims continue to be
several times greater than the same period last year.
With over 1.24 million Illinoisans filing unemployment claims since COVID-19
began affecting the economy, Illinois employed population declined by nearly
21%.
The spike in the state’s unemployment rate has increased racial and ethnic gaps
in both health and labor market outcomes. Women, particularly black and Hispanic
women, have been the most affected by job losses during the coronavirus pandemic
and state-mandated lockdown. The primary reason for the sharper decline for
these groups is that they tend to be employed in industries that were deemed
“non-essential” by Gov. J.B. Pritzker’s stay-at-home order. It is now expected
that it could take a decade to overcome the economic losses experienced during
the past several months.
An index of coronavirus lockdown restrictions and Current Population Survey data
show that states with the most restrictive lockdowns suffered the largest
decline in employment.
Data from all 50 states show that states
with the most restrictive lockdowns suffered the largest declines in employment.
If Illinois leaders want to mitigate the losses, they must phase out the
draconian lockdown measures more quickly. Lifting the lockdown will help to
prevent mass business failures and permanent job losses. Illinois families
cannot afford to be out of work for an extended period of time.
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The evidence suggests that most small businesses
have less than two months of cash on hand while the median small
enterprise has more than $10,000 in monthly bills and less than one
month of cash on hand. Illinois’ small businesses employ the
majority of Illinois workers. Allowing businesses to open again is
an important step to save lives and livelihoods.
Although lifting a lockdown will not restore
economic activity to levels observed before the pandemic, research
shows the sequential lift of a lockdown is the best way to mitigate
both the human cost of the virus and the economic damage.
Further, Illinois voters need to consider the effects of the tax
hike state leaders are seeking Nov. 3. Economists argue against
increasing taxes during a recession. A progressive tax will increase
taxes up to 47% on more than 100,000 small businesses just as they
are trying to recover from the COVID-19 economic damage, and those
small businesses are responsible for the vast majority of new jobs
in Illinois.
A safe return to work for Illinois families is the first step to
tackle growing racial gaps and to revive the Illinois economy. A tax
increase would be a misstep.
After more than a century of protests erupting in Illinois and
across the country, historians consistently peel back the triggers
and factors to find economic injustice at the core. Ignoring the
disproportionate costs of a pandemic and the pain in the streets by
continuing the same, failed policies is to welcome further human
suffering.
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