Illinois No. 3 for highest unemployment in October
October job numbers for Illinois remained disappointing, with an unemployment rate that was third highest in the nation. There are 346,000 Illinoisans who need a job.
Illinois’ unemployment rate was third highest in the U.S. in October 2024, behind only California and Nevada.
The state maintained a 5.3% unemployment rate according to the latest data release from the U.S. Bureau of Labor Statistics. There are approximately 346,000 Illinois residents looking for work.
Illinois’ unemployment rate continued to exceed the national average of 4.1% in October. It was higher than in any neighboring state.
Illinois saw a job growth of 40,500 compared to October 2023. This is far behind the national growth of 1.39% in the same period.
Illinois saw the highest growth rates in state government, adding 10,300 jobs. Other sectors with strong growth rates were private education and health services with 30,400 new jobs and “other sectors” with 9,200 new jobs. The professional and business sector saw the largest net decline during the 12-month period, reporting 18,400 fewer positions from a year earlier. The information sector lost 1,600 positions and the finance sector also saw a sharp decline of 8,000 jobs.
Illinois saw modest gains in 6 out of 11 industries, not including government.
Illinois ranked second to last in job growth rate among neighboring states from October 2023 to October 2024 at 0.66%. Missouri reported the strongest job growth at 2.73%.
Illinois’ job recovery rate since the pandemic has been notably slow, ranking 47th in the nation, with only 1,200 more jobs than were available in January 2020, an anemic 0.02% increase. This ranks last among neighboring states in 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 budget.
Data from the U.S. Census Bureau shows the state lost 32,826 residents in 2023 with 3 in 4 Illinois communities losing 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 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 with over $1.1 billion in new taxes propping up the current budget and a $3.2 billion budget hole projected for 2026. 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.