U.S. payroll gains leaving Illinois behind

The Bureau of Labor Statistics reported a gain of 288,000 payroll jobs nationally for the month of April, better than consensus expectations of a gain of 218,000. The national jobless rate dropped to 6.3 percent from 6.7 percent. The month-over-month gain in payroll jobs was the best since January 2012. However, the entire decline in...

The Bureau of Labor Statistics reported a gain of 288,000 payroll jobs nationally for the month of April, better than consensus expectations of a gain of 218,000. The national jobless rate dropped to 6.3 percent from 6.7 percent.

The month-over-month gain in payroll jobs was the best since January 2012. However, the entire decline in the jobless rate came from Americans leaving the workforce. The household survey showed 806,000 Americans dropped out of the workforce in April, more than the decline in unemployed. The jobless rate is driven lower when the unemployed leave the work force.

The U.S. payroll growth rate has dwarfed that of Illinois in 2014. The national economy has created jobs in every month of 2014, while Illinois has created jobs in only one month, and is negative on the year.

This month marks an important milestone for the U.S. labor market. The national economy is only 112,000 jobs, a mere eight-hundredths of a percent, from recovering to pre-recession payroll highs. A normal payroll gain in May would put U.S. payrolls above the previous January 2008 high.

Meanwhile, Illinois has experienced the worst jobs recovery in the Midwest, and one of the worst recoveries nationally. Illinois payrolls are still a full 3 percent below pre-recession highs.

Illinois can grow its payrolls by embracing the reforms that are leading to job creation in pro-growth states. Sunsetting the temporary 2011 tax hike would be a good start. Illinois also needs job-saving reforms to its workers’ compensation system, ranked fourth-worst nationally, and its unemployment insurance system, ranked ninth-worst nationally.

Finally, cutting back on the state’s numerous regulations would foster entrepreneurship and encourage small business growth.