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ILLINOIS
PAYROLLS STAGNANT, UNEMPLOYMENT RATE 35% HIGHER THAN U.S. AVERAGE
Illinois Policy Institute/
Bryce Hill
Illinois’ non-farm payrolls only added
2,500 jobs from mid-July to mid-August. Unemployment was steadily high
as the rest of the nation recovered. |
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 Illinois added just 2,500 jobs from mid-July through
mid-August, virtually unchanged from the previous month according to data
released by the Illinois Department of Employment Security.
The sluggish August jobs report comes on the heels of a strong performance in
July, in which revised numbers show the state added 38,100 jobs. August was the
worst month for Illinois jobs since April.
At the industry level, results were mixed. Five major industries shed jobs, five
added jobs and one remained unchanged in August.
Of the industries that added jobs, leisure and hospitality grew the most with
5,800 (+1.2%) payroll jobs. Manufacturing gained 3,900 (+0.7%) jobs; government
payrolls grew by 1,900 (+0.2%); information payrolls expanded by 300 (+0.3%);
and mining added 100 (+1.5%) jobs.
In terms of industries that lost jobs, educational and health services lost the
most jobs at -4,900 (-0.5%) in August. Trade, transportation and utilities lost
2,300 (-0.2%) jobs; other services payrolls shrank by 1,300 (-0.5%);
construction cut 700 (-0.3%) jobs; and financial activities lost 300 (-0.1%)
jobs last month. Professional and business services payrolls remained unchanged
in August.
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Despite meager growth in payrolls during the month,
Illinois’ unemployment rate did fall from 7.1% to 7% in August.
However, the state continued to fall behind the national recovery,
as the national unemployment rate fell from 5.4% to 5.2%. That means
Illinois’ unemployment rate is now 35% higher than the national
average. Making matters worse for the 435,900
Illinoisans still out of work, Illinois lawmakers passed a $42.3
billion budget that was unbalanced for the 21st year in a row
despite imposing $655 million in tax hikes that specifically hurt
investment and job creation. Those taxes will hinder Illinois’
economy as it attempts to recover.
The other jobs threat is a $5.8 billion deficit in the state’s
unemployment insurance trust fund. The state Sept. 6 missed a
federal loan payment deadline, meaning a $4.2 billion interest-free
federal loan used to cover unemployment benefits is now costing
taxpayers $60 million in interest a year and is likely triggering
automatic tax hikes and benefit cuts that are expected to further
damage Illinois’ weak job market.
Ignoring how public policy, and specifically taxation, impacts a
fragile COVID-19 economic recovery will only lengthen and deepen
Illinois’ struggles. |
