Unemployment persists in Illinois metro areas during August
Illinois’ job market outpaced the national average during August. But 13 of Illinois’ 15 metropolitan areas continued to have higher unemployment rates than the national average.
Illinois’ high unemployment continued during August, with 13 of the 15 metropolitan areas seeing higher unemployment than the 4.4% national average.
Metro areas across the state saw an overall increase of only 800 (0.01%) jobs, according to the U.S. Bureau of Labor Statistics. The national economy gained 142,000 jobs (0.09%). Seven of Illinois’ 15 metro areas saw an increase from July to August 2024.
The Danville area saw the largest percentage increase in non-farm employment, growing 1.14%, or 300 jobs. Rockford, Lake County-Kenosha County, and St. Louis also saw significant growth.
The Chicago area lost 1,000 jobs, a 0.03% decline.
Despite some positive job growth, unemployment remains a concern across Illinois. Of the 15 metro areas, 13 reported unemployment rates higher than the national average of 4.4%. Danville faced the highest unemployment rate at 6.9%, followed closely by Decatur at 6.3% as well as Kankakee and Rockford tied at 6%.
The Chicago metro continued to post high unemployment rates coming at 5.7%.
Overall, nine Illinois metro areas added jobs between August 2023 and August 2024. Champaign-Urbana led the metros with a 4.91% growth, adding 6,000 jobs. The St. Louis metro, which is mostly in Missouri, followed with a job growth of 2.29%.
The biggest loser was the Davenport area, losing 1.87% of its jobs.
The Chicago-Naperville-Arlington Heights metro division has added just 100 jobs during the year. That was well below the national average, which added 1.51% during the past year.
St. Louis accounted for the largest share of job growth. It was 78.47% of all job growth among metro areas during the past year. Much of it went to Missouri, which shares the St. Louis metro area. The Champaign-Urbana area was second at 14.35%.
Illinois employment growth exceeded pre-pandemic levels but trailed behind the national economy, with the state adding 0.22% more jobs. Eight areas continued to report fewer jobs than over four years ago.
The Chicago-Naperville-Arlington Heights Metro Division showed mixed results across industries. While sectors such as manufacturing, private education and health services along with government saw job gains, others such as retail trade, transportation and financial activities saw losses.
The Illinois job market continues to face ongoing issues. Slow job growth and high unemployment mark a struggling state economy. A large exodus of skilled workers does not help.
Illinois has many advantages, including Chicago’s status as an economic hub, the state’s extensive transportation infrastructure, and its diverse economy. Despite this, Illinois continues to come up short because of poor public policy decisions.
High tax rates are the top reason the state continues to hemorrhage skilled workers. The Illinois Policy Institute’s 2023 Lincoln Poll 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.
Recent income tax hikes have already fostered an environment in Illinois that makes it harder for Illinoisans to find work and reduces wage growth prospects for those who are employed. In addition, rising property taxes have made housing less affordable and reduced returns on real estate investment relative to other states.
To promote job growth, Illinois must focus on strengthening its fiscal position, removing regulatory burdens and providing real tax relief both to workers who are being tempted to leave and job creators who are desperately trying to stay.