Study suggests Illinois' unemployment rate is expected to increase

[July 23, 2022]  By Andrew Hensel | The Center Square

(The Center Square) – A new report suggests that Illinois' unemployment rate will rise to over 5% by 2027. One expert discusses why Illinois struggles in the job market.

The research carried out by Lensa calculated the average change in unemployment rates in Illinois and applied this to the 2021 figures to estimate the state's unemployment rate if the trends continued on their current trajectory.

For Illinois, the unemployment rate in June was 4.5%, lagging the national average of 3.6%. Illinois' average unemployment rate in 2021 was 6.1% and the report projects that number to grow over the next few years.

Bryce Hill, director of fiscal and economic policy with the Illinois Policy Institute, reviewed Lensa's report and explained what was accounted for in the report.
 

"They compared Illinois' overall job market to others across the country, and looked at job prospects, ability to find a job and likelihood to build a career in Illinois," Hill said. "They found that the prospects in Illinois are not as good as in other states."

Hill gave some insight into what Illinois is struggling with within the job market.

"If you look at Illinois today, they are battling the fourth-highest unemployment rate in the nation at 4.5%," Hill said. "We are also missing 117,000 jobs. So we lost one in seven jobs during the pandemic, and those jobs have still not returned."

Not only have jobs not returned to pre-pandemic levels in Illinois, many major companies that have been in Illinois for a long time have also recently announced they are moving their corporate headquarters elsewhere.

Family Video announced earlier this month that it would move its corporate headquarters to Tennessee. That move follows Citadel, Boeing, and Caterpillar, which announced plans to relocate to different states earlier this year.

Hill said that at the end of the day, other states have better situations for businesses.

"The general unemployment environment for the long term in Illinois is not great," Hill said. "Part of that is these businesses, and their employees are taxpayers. So when employers look at the long-term viability of the state, they are deciding there are better options elsewhere."

According to the report, Illinois is projected to have the worst unemployment rate in the Midwest over the next five years.

Andrew Hensel has years of experience as a reporter and pre-game host for the Joliet Slammers, and as a producer for the Windy City Bulls. A graduate of Iowa Wesleyan University and Illinois Media School, Andrew lives in the south suburbs of Chicago.