Illinois unemployment jumps to 5% in June

Illinois unemployment rose to 5% during June, ranking third worst in the U.S. About 328,000 Illinoisans need a job.

Illinois employment growth still lagged the rest of the nation in June 2024.

Illinois’ unemployment rate is the third-worst in the U.S. in June 2024, jumping to 5%, according to new data from the U.S. Bureau of Labor Statistics. This translates to approximately 328,000 Illinoisans looking for work.

Illinois’ unemployment rate continued to exceed the national average of 4.1% in June. It was higher than in any neighboring state.

Illinois saw modest job growth during the past year, adding 24,200 jobs compared to June 2023. This growth rate ranked Illinois 46th among all states for non-farm job growth at 0.4%. This falls far short of the 1.7% growth the nation had during the same period.

Illinois saw some of the highest growth rates in “other services,” adding 8,500 jobs (a 3.4% increase). The state and local government sectors also saw significant gains, growing at 3.4% each. The professional and business sector saw the largest net decline during the 12-month period, reporting 27,000 fewer positions than a year earlier. The information sector also saw a sharp decline, shedding 5.6% of its workforce.

Illinois saw modest gains in only five out of 11 industries, not including government. The state only outperformed its neighbors in three sectors.

Illinois ranked last in job growth rate among neighboring states from June 2023 to June 2024 at 0.4%. Missouri reported the strongest job growth at 3.2%.

Illinois’ job recovery rate since the pandemic has been slow, ranking 46th in the nation. It has only 17,100 more jobs than were available in January 2020 – a 0.28% increase. That ranks last among neighboring states.

Continual population loss has impacted Illinois’ job recovery. Data from the U.S. Census Bureau shows the state lost 32,826 residents in 2023, marking its 10th consecutive year of population decline.

High taxes have made Illinois an unpopular destination to live and work, with residents citing taxes as the No. 1 reason to leave the state. The Illinois Policy Institute’s Lincoln Poll in 2023 substantiated that concern.

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.

Recent income tax hikes have already fostered an environment in Illinois that make it harder for Illinoisans to find work. They reduce wage growth prospects for those who are employed.

Illinois has many advantages, such as its diverse economy, central location and strong infrastructure. To take full advantage of this, state leaders need to stop hamstringing the economy with high taxation and poor public policy. 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.