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 Illinois added 35,400 jobs in July, the strongest performance
since February, but overall the state’s unemployment rate is holding steady as
the rest of the nation’s economy is bouncing back.
New data from the U.S. Bureau of Labor Statistics shows while Illinois added
35,400 jobs from mid-June to mid-July, that did little to help the unemployment
situation. Illinois’ unemployment rate remained virtually unchanged, coming in
at 7.1% – where it has been stuck since March.
The industry adding the most jobs in July was leisure and
hospitality. It added 14,200 positions, yet remains the farthest off
pre-pandemic job levels. Educational and health services added 7,100 jobs;
professional and business services payrolls grew by 4,200; construction
increased employment by 3,700; trade, transportation and utilities added 3,100
jobs; manufacturing expanded by 2,200 jobs; other services grew by 2,100
positions; information added 700 jobs; mining grew payrolls by 100; and federal
government employment increased by 300 jobs.
 Some industries did shed jobs during the month. The state of Illinois and local
governments cut 600 jobs, while financial activities shed 1,700 positions.
The state’s unemployment rate of 7.1% is far higher than the national rate of
5.4%. While the national unemployment rate has continued to decline in recent
months, Illinois’ unemployment rate has remained at 7.1% since March.
Illinois’ unemployment rate is the 8th highest in the nation, far higher than
any other neighboring or Midwestern state.
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Illinois’ weak labor market performance has not
been felt equally, however. Black Illinoisans – who face an
unemployment rate of 15.9% – are more than three times as likely to
be out of work than white Illinoisans, whose unemployment rate is
5%. Hispanic Illinoisans, facing an unemployment rate of 6.4%, also
fare drastically better than Black Illinoisans. Not
only are Black job seekers suffering disparate outcomes in their job
searches, but their employment outcomes have also actually gotten
worse compared to last year. While white and Hispanic Illinoisans
have essentially seen their unemployment rates cut in half from July
2020 to July 2021, the unemployment rate for Black Illinoisans has
increased. While there have been increases in the number of
Illinoisans looking for work in the past year, the data provides
further evidence to suggest Black Illinoisans are being left out of
the labor market recovery.
The disparate effects of the COVID-19 economic downturn across
industries and demographic groups have persisted during the state’s
labor market recovery. Making matters worse for those Illinoisans
still out of work, Illinois lawmakers passed a $42.3 billion budget
that was unbalanced for the 21st year in a row and imposed $655
million in tax hikes that specifically strike at job creation. Those
taxes will hinder Illinois’ economy as it attempts to recover.
Ignoring how public policy, and specifically taxation, impacts a
fragile recovery will only lengthen and deepen Illinois’ struggles.
But it appears Illinois’ minority workers will struggle the most,
with state leaders’ missteps adding to their woes. |
