Illinois unemployment No. 3 in U.S. during November
Illinois is caught in a sluggish job market with persistently high unemployment. It was third-highest in the U.S. again during November.
Illinois remains one of the states with the highest unemployment rates, ranking No. 3 with a 5.3% rate during November.
That 5.3% unemployment rate translated into about 346,000 Illinoisans looking for work. Only California and Nevada had higher unemployment rates in November, according to the U.S. Bureau of Labor Statistics.
The national average was 4.2%. Illinois’ rate was higher than any neighboring state’s.
Illinois saw a job growth of 42,600 over the past year, compared to November 2023. The growth rate for Illinois was only 0.7%, which ranked the state 45th.
Illinois saw the highest growth rates in state government jobs, adding 10,600 jobs. Other sectors with strong growth rates were private education and health services with 25,100 new jobs and “other sectors” with 10,900 new jobs. Meanwhile, the professional and business sector saw the largest net decline during the 12-month period, reporting 12,400 fewer positions from a year earlier. The manufacturing sector lost 6,100 positions and the finance sector also saw a sharp decline of 7,400 jobs.
Illinois saw modest gains in 5 out of 11 industries, not including government.
Illinois ranked second to last in job growth rate among neighboring states from November 2023 to November 2024 at 0.7%. Missouri reported the strongest job growth at 2.73%.
Illinois’ job recovery rate since the pandemic has been notably slow, ranking 46th in the nation, with only 8,600 more jobs than were available in January 2020. This translated to a 0.14% increase and ranks last among neighboring states for post-pandemic recovery.
The primary culprit in Illinois’ slow economic growth and high unemployment is an unfriendly business environment because of high taxes resulting from a constantly mismanaged state budget.
Illinois’ state and local tax burden is the highest in the Midwest. The state 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.
Despite this, the state continues to overspend and support its overspending with over $1.1 billion in new taxes in the latest budget. Illinois continues to foster an environment that makes it harder for Illinoisans to find work and reduces wage growth prospects for those who are employed.
Illinois has many advantages such as its diverse economy, central location and strong infrastructure. To take advantage of this, 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.Top of FormBottom of Form