Illinois holds second-worst unemployment rate in the nation
Illinois is tied with California for the nation’s second-worst unemployment behind only Nevada, according to September data.
Illinois’ latest employment figures show the state is struggling to maintain job growth and is still suffering from high unemployment.
Illinois’ unemployment rate was tied with California for the 2nd highest in the U.S. in September 2024, maintaining at 5.3%, according to the latest data release from the U.S. Bureau of Labor Statistics.
Illinois’ unemployment rate continued to exceed the national average of 4.1% in September. It was higher than in any neighboring state.
Illinois saw job growth of 35,400 since September 2023. This growth rate ranked Illinois 47th among all states for non-farm job growth at 0.58%. This is far behind the national growth of 1.56% in the same period.
The sector with the best job growth: Government. The highest growth rate was in state government, adding 8,800 jobs, a 6.14% increase.
Local government added 33,800 new jobs, or 5.73% increase, and “other sectors” with 10,100 new jobs, or 4.01%. Meanwhile, the professional and business sector saw the largest net decline during the 12-month period, reporting 32,000 fewer positions than a year earlier.
The information sector and finance sector also saw sharp declines, shedding 3.89% and 2.24% of their respective workforces.
Illinois saw modest gains in only 4 out of 11 industries, not including government. Illinois ranked last in job growth rate among neighboring states from September 2023 to September 2024 at 0.58%. Missouri reported the strongest job growth at 2.9%.
Illinois’ job recovery rate since the pandemic ranks 44th in the nation, with only 26,500 more jobs than were available in January 2020, a 0.43% increase. This ranks last among neighboring states.
The primary culprit in Illinois’ slow economic growth and high unemployment is an unfriendly business environment resulting from high taxes under a constantly mismanaged budget.
Data from the U.S. Census Bureau shows that the state lost 32,826 residents in 2023, and 3 in 4 Illinois communities lost residents. This marks 10 consecutive years of net population decline.
Illinois’ state and local tax burden is the highest in the Midwest. The state also levies the second-highest corporate income tax in the nation, and its tax code is among the least friendly for businesses in the Midwest.
Despite this, the state continues to overspend, 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.