Illinois had 1,183 mass layoffs in August, with more than 9-in-10 stemming from business closures

Chicago led the state in mass layoffs, accounting for more than one-third of job cuts in August. The statewide data shows 93% of job losses stemmed from companies closing up shop.

Illinois companies announced 1,183 mass layoffs in August, with 93% of job losses statewide driven by business closures.

The highest concentration of Illinois’ August job losses – 443 of the 1,183 layoffs – hit Chicago after job cuts were announced at a manufacturing company and collections agency, according to Illinois Worker Adjustment and Retraining Notification reports.

Chicago accounted for more than one-third of mass layoffs announced in August. Major firms like Wheatland Tube, LLC and Genpact, LLC reduced their presence in Chicago, contributing to this high number.

Lockport followed closely with the second most layoffs at an office equipment wholesaler, accounting for nearly a quarter of job losses statewide.

Most companies did not specify a cause for the layoffs, but those that did cited the sale of their business as driving staff cuts.

The nature of these layoffs varied, with business closures impacting 1,104 workers – or more than 9-in-10 layoffs announced statewide in August – while standard layoffs accounted for only 79 job cuts.

Cook County accounted for 443 layoffs while another 408 job losses occurred in the Collar counties. No location was reported for 253 layoffs related to EYM Chicken of Illinois, LLC losing a contract with Kentucky Fried Chicken.

Illinois employers are mandated to file monthly mass layoff reports under the WARN Act. While the reports serve as a gauge for job trends, they are not a perfect indicator of broader economic health.

Illinois’ unemployment rate for August tied for the 2nd-worst in the U.S., jumping to 5.3%, according to recent data from the U.S. Bureau of Labor Statistics. This translates to 343,000 Illinoisans looking for work.

Illinois ranked 37th in the nation for business tax climate, down eight spots from 2018 ranks, according to the Tax Foundation’s 2024 State Business Tax Climate report.

Illinois state leaders could do a lot to make Illinois more attractive to businesses and workers. Some good places to begin would be lowering Illinois’ No. 2 in the nation average property tax rate, lowering the nation’s second-highest corporate income taxes and the 8.65% maximum unemployment insurance tax rate.