Illinois unemployment rate in July hits 2nd highest in U.S.
July unemployment hit 5.2% in Illinois, ranking second worst in the nation. It equated to 341,630 workers looking for a job.
Illinois’ latest employment figures for July paint a picture of slow job growth and persistently high unemployment.
Illinois’ unemployment rate for July tied for the 2nd-worst in the U.S., jumping to 5.2%, according to new data from the U.S. Bureau of Labor Statistics. This translates to 341,630 Illinoisans looking for work.
Illinois’ unemployment rate continued to exceed the national average of 4.3% in July. It was higher than in any neighboring state.
Illinois saw modest job growth during the past year, adding 37,300 jobs compared to July 2023. This growth rate ranked Illinois 48th among all states for non-farm job growth at 0.61%. This falls far short of the 1.61% growth the nation had during the year.
Illinois saw the highest growth rates in state government jobs, adding 8,900 jobs for a 6.25% increase. Other sectors with strong growth rates were “other services,” with 11,200 new jobs for a 4.46% increase, and local governments with 23,200 new jobs for a 3.92% increase. The professional and business sector saw the largest net decline during the 12-month period, reporting 27,200 fewer positions than a year earlier. The information sector also saw a sharp decline, shedding 5.16% of its workforce.
Illinois saw modest gains in only seven of 11 industries, not including government. The state only outperformed its neighbors in two sectors.
Illinois ranked last in the job growth rate among neighboring states from July 2023 to July 2024 at 0.61%. Missouri reported the strongest job growth at 2.09%.
Illinois’ job recovery rate since the pandemic has been slow, ranking 45th in the nation with only 15,300 more jobs than were available in January 2020. That is only a 0.25% increase. This also 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 from 3 in 4 Illinois communities. It marks 10 consecutive years of net population decline.
High taxes have made Illinois an unpopular destination to live and work, with residents citing high taxes as the No. 1 reason to leave the state. The Illinois Policy Institute’s Lincoln Poll in 2023 substantiated that reason.
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.
With over $1.1 billion in new taxes in the latest state 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 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.