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AILLINOIS’
ECONOMY RECOVERING, BUT CONTINUES TO LAG REST OF MIDWEST
Illinois Policy Institute/
Bryce Hill
Illinois continued to build upon its slow
economic recovery in March, according to data released April 16 by the
U.S. Bureau of Labor Statistics. The state added 32,200 jobs, a 0.6%
gain, from mid-February to mid-March, marking the third consecutive
month of job gains. |
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 The leisure and hospitality industry experienced the largest
share of the new jobs, increasing payrolls by 13,700 (+3.1%); construction added
6,300 jobs (+2.9%); professional and business services also added 6,300 (+0.07%)
positions; educational and health services expanded by 5,100 jobs (+0.6%);
trade, transportation and utilities grew by 2,000 jobs (+0.2%); other services
also added 2,000 (+0.9%) jobs; mining grew payrolls by 200 (+3.2%) positions;
and manufacturing experienced an uptick of 100 (+0.02%) jobs.
Unfortunately, some sectors shrank during the month. Government payrolls
declined by 2,600 (-0.3%) jobs; financial activities jobs declined by 700
(-0.2%); and information positions shrank by 200 (-0.2%).
Despite a strong month for overall job gains, Illinois’ unemployment rate still
lags the rest of the nation and is the highest of all Midwestern states at 7.1%,
leaving 436,400 Illinoisans looking for work.
The next highest unemployment rate was found in Michigan, with
an unemployment rate of 5.1%, while many Midwestern states sport unemployment
rates among the lowest in the nation.
Unfortunately for those Illinoisans still out of work, Gov. J.B. Pritzker is
pursuing nine new taxes worth nearly $1 billion, including ones that would hurt
job creation efforts. The move was decried by the Illinois Chamber of Commerce
and Republicans because Pritzker is not closing unfair “loopholes” as he
claimed, but rather trying to take back a deal he made early in his term for key
tax incentives and deductions intended to create jobs.
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Pritzker is also rumored to be pursuing the
cancellation of a pandemic recovery tax credit for small businesses
that would have taken from $500 million to $1 billion more from them
as they struggle to recover.
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.
Instead, Illinois can improve its finances and continue to provide
core services mainly by implementing constitutional pension reform.
The Illinois Policy Institute is offering that along with other
fiscal fixes that can give overburdened Illinois taxpayers a path to
declining debt, lower taxes and more effective state government.
Illinois needs its labor markets to improve so the state can create
more jobs and grow the tax base, not to pass more and higher taxes
that cost the state more jobs and residents.
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