Unemployment tops U.S. average in all but 2 Illinois areas during June

Despite some growth, high unemployment remains a persistent issue in Illinois with 13 of 15 metropolitan areas showing higher rates of unemployment than the national average.

Illinois saw unemployment exceed the 4.3% U.S. average in 13 of its 15 metropolitan areas during June.

Danville faced the highest unemployment rate at 7.5%, followed closely by Decatur at 7.2% and Rockford at 6.7%. The Chicago area also came in substantially above the national average at 6.4% unemployment.

Ten of 15 Illinois metro areas added jobs from May to June, an overall increase of 10,400 jobs statewide, according to new data from the U.S. Bureau of Labor Statistics.

The Decatur metro area saw the largest percentage increase in non-farm employment, growing 0.63%, or 300 jobs, in June. Leading the losses was the Davenport metro area, falling by 0.5%.

Illinois reported 0.17% more jobs in June, compared to 0.13% growth nationwide. The Kankakee metro area also saw a notable drop of 200 jobs.

The Chicago metro area gained 200 jobs, reflecting a gain of 0.01%. That ranked 10th among Illinois metro areas.

Taking the longer view, 10 Illinois metro areas added jobs between June 2023 and June 2024. Three metros outpaced the national job growth rate of 1.67%: Carbondale-Marion (1.72%), Champaign-Urbana (2.05%) and St. Louis, MO-IL (2.16%).

The biggest loser was Davenport-Moline-Rock Island with a decline of 2,600 jobs, or a 1.42% drop. Springfield and Decatur also lost significant numbers of jobs.

The Chicago-Naperville-Arlington Heights metro division added 500 jobs, a 0.01% increase over the year. While positive, this growth rate lagged the national average.

Several industries saw significant growth in the Chicago-Naperville-Arlington Heights metro division in the year. Manufacturing added 9,300 jobs, a 3.34% increase. Private education and health services grew by 12,200 jobs, up 1.94%. State government jobs increased by 1,500, or 3.76%. However, some sectors faced declines, with professional and business services losing 27,300 jobs, a 3.81% decrease.

Persistently high unemployment shows there is much work to be done in Illinois. The ongoing exodus of skilled workers does not help.

Historically, high taxes have been the No. 1 reason Illinoisans considered leaving the state. The Illinois Policy Institute’s Lincoln Poll in 2023 substantiated that reason.

Illinois’ state and local tax burden is the highest in the Midwest. Illinois also levies the second-highest state corporate income tax in the nation and the state’s tax code is among the least friendly for businesses in the Midwest.

To promote job growth, state leaders need to stop hamstringing the economy with high taxation and poor public policy. Illinois must focus on strengthening its fiscal position, removing regulatory burdens, and providing real tax relief both to workers who are already finding it difficult to remain and to job creators who are desperately trying to stay.