Report: Illinois recovery lags nation
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[May 26, 2021]
By Cole Lauterbach
(The Center Square) – Illinois is a year
past its lowest point in terms of job losses and it is recovering slower
than all but a handful of states.
A new analysis of federal jobs data by the Illinois Policy Institute
shows Illinois has added 408,400 jobs (+7.7%) since April 2020, or 7.7%
of the jobs lost since then.
The only states adding a lower percentage of jobs were Nebraska (+7.5%),
Louisiana (+7.5%), Iowa (+7.4%), Oklahoma (+5.9%), Wyoming (+4.7%) and
New Mexico (+4.2%), the report said.
“Employment levels in Illinois remain 424,800 below their pre-pandemic
peak in January 2020, meaning Illinois has regained fewer than half the
jobs it lost during the pandemic,” the report said. “As a result,
Illinois is battling one of the highest unemployment rates in the
nation.”
Job-friendliness and severity of lockdowns, two of the more politicized
aspects of the COVID-19 pandemic, don’t appear to be the sole deciding
factors. New York, which saw some of the most stringent mitigation
measures, had recovered 13.1% of its jobs since April 2020, the
ninth-best in the country. It’s often measured against Florida, a
tourism-heavy industry, which has recovered 9.8% of its lost jobs.
Bryce Hill, IPI’s senior data analyst and author of the report, said
Tuesday that the state’s well-rounded economy fared better than others
who may be more dependent on tourism and service sectors but it’s
struggled to bring back the jobs that it’s lost.
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“Although we experienced fewer job declines in other states, when
compared to pre-pandemic, Illinois is still missing about 6.9% of jobs
that it had before,” he said. “That’s 37th-worst in the nation.”
Hill said employers in Illinois are facing some of the nation’s highest
tax burden with the prospect of higher taxes and minimum wage costs.
Mark Grant, who heads the Illinois chapter of the National Federation of
Independent Business, says those have long-affected job creators in the
state but there are several other factors.
“I'm not sure about other states, but here in Illinois, our members say
they're trying to hire but they aren't getting as many applicants as
they would have expected,” he said. "People may be staying home to care
for children or older family members, or they may still be concerned
about the coronavirus, but we believe a big reason many people are
opting not to apply is the $300 weekly federal unemployment supplement.”
Grant said the federal supplement was necessary when COVID was forcing
businesses to close or cut back and no one was hiring, but as Illinois'
economy has improved, “it's discouraging some people” from re-entering
the workforce.
"Last spring, businesses were reducing hours and reducing services
because of the pandemic,” he said. “This spring, it's because they can't
get enough people to work." |