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Illinois companies announced 1,183 mass layoffs in August,
according to the Illinois Policy Institute. Of the 1,183
layoffs, 443 hit Chicago.
"Even though the homicide rate is down, the violent crime rates
are still very high, and that causes fear in a lot of
prospective employees who want to move to the state or that
city, specifically. That adds more reasons for businesses to not
want to come here or leave the state,” said Policy Researcher at
Illinois Policy Institute Ravi Mishra.
Illinois’ unemployment rate for August tied for the second-worst
in the U.S., jumping to 5.3%, according to recent data from the
U.S. Bureau of Labor Statistics. This translates to 343,000
Illinoisans looking for work. Mishra said the manufacturing
industry was hit the worst.
"Typically these things do tend to affect lower-paid employees,
it just comes down to the fact that higher-paid employees have
more economic mobility,” said Mishra. “Lower paid employees are
less likely to leave the state if a company is switching over to
a different state.”
Walterscheid Inc. Woodridge, a farm equipment manufacturer,
relocated its company.
Mishra said so much of the state’s budget goes towards pension
debt. He explained pension reform could help the state lower
taxes.
"High budgetary costs is the big reason why the city [and state]
has to levy such high tax rates and these tax rates are what
leads to the state having such a bad [economic] environment,”
said Mishra.
Mishra said Illinois’ second-highest corporate income taxes in
the nation don’t help either.
“That makes it hard for businesses to grow and it also leads to
a comparative disadvantage when you look at our neighboring
states,” said Mirsha.
Illinois employers are mandated to file monthly mass layoff
reports under the WARN Act, Worker Adjustment and Retraining
Notification Act. |
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