Preliminary jobs report: Illinois adds 18,100 jobs in February

Illinois has finally recovered from the job losses suffered during the Great Recession, and its workforce continues to grow. But the state’s unemployment rate is also increasing, signaling that while the economy is recovering, it is still unable to meet the demands of a growing number of job seekers.

Illinois added 18,100 jobs on net in February 2016, meaning Illinois has finally recovered from the job losses suffered during the Great Recession, according to a preliminary jobs report released by the Illinois Department of Employment Security, or IDES. The Bureau of Labor Statistics will release a complete jobs report on March 25.

Before February, Illinois and Missouri were the only two states in the region yet to break even in jobs recovery from the recession. Many of the jobs Illinoisans work have shifted from higher-paid industries, such as manufacturing, to lower-paid service jobs, such as bartending. For example, over the recession era Illinois is still down 90,000 manufacturing jobs, but up 54,000 leisure and hospitality jobs.

Multiple industries had significant job gains. Illinois saw the greatest jobs growth in the trade, transportation and utilities industry, which gained 4,500 jobs, and professional and business services, which added 6,600 jobs. Manufacturing gained 3,500 jobs, a marked improvement from previous months.

Construction suffered the heaviest jobs losses over the month, down 2,400 jobs on net.

The IDES release also indicated an interesting trend in Illinois’ workforce – namely, it is growing significantly. In February, 31,800 people entered the workforce in Illinois. Also during February, 24,000 more people were employed, but state unemployment rolls also increased by 7,800 people.

Illinois’ unemployment rate increased to 6.4 percent in February, up 0.1 percentage points from January. More Illinoisans entering the workforce was the primary driver of this hike. While more Illinoisans were employed in February, the state also added more unemployed people, continuing a negative trend of growth in unemployment rolls. This is the inverse of what the state experienced in 2014, when people were leaving the labor force, which had the effect of shrinking the unemployment rate.

While February’s jobs report is positive – the state added jobs, increased employment – on the flipside, increased net unemployment, which shows that in spite of growth in the number of jobs, the economy is still unable to provide the necessary jobs for those seeking work.

Important information from the February jobs report from IDES include:

• Illinois added 18,100 jobs on net in February
• Illinois has finally recovered the number of jobs that were lost during the Great Recession, although many of the jobs Illinoisans work have shifted from higher-paid industries, such as manufacturing, to lower-paid service jobs, such as bartending. For example, over the recession era Illinois is still down 90,000 manufacturing jobs but up 54,000 leisure and hospitality jobs.
• Illinois’ unemployment rate went up to 6.4 percent – this is the seventh month in a row that Illinois has suffered a net increase in unemployed people
• The state’s labor force grew by 31,800 people; 24,000 people found some form of employment; 7,800 more people were unemployed
• Professional and business services added 6,600 trade, transportation and utilities industry gained 4,500 jobs; manufacturing gained 3,500 jobs
• Construction lost 2,400 jobs; the education and health services industry lost 2,000 jobs