Unemployment high in 13 of 15 Illinois metro job markets
The statewide Illinois job market outpaced the national average. But 13 of 15 metro areas continued to have higher unemployment rates than the U.S. average.
Unemployment in September remained a concern across Illinois, despite some positive job growth.
Thirteen of the 15 metro areas reported unemployment rates higher than the national average of 3.9%, according to the U.S. Bureau of Labor Statistics. Danville faced the highest unemployment rate at 6.3%, followed closely by Decatur at 5.9% and Kankakee at 5.5%. The two areas that beat the national average have most of their populations living outside Illinois, St. Louis and Cape Girardeau.
The Chicago metro area saw a promising unemployment figure of 5.2%. It was a notable decrease from previous months, although remained higher than the national average.
Metros across the state saw an overall increase of 7,100 (0.12%) jobs. While a notable increase, this still lagged the national economy, which gained 254,000 jobs (a 0.16% increase). Overall, nine of Illinois’ 15 metros saw an increase from August to September 2024.
The Rockford area saw the largest percentage increase in non-farm employment, growing 0.55% during the month with 800 jobs. Davenport, Lake County-Kenosha County, and Springfield also saw significant growth.
The Chicago metro area also saw a notable growth of 7,100 jobs, a 0.19% increase. This rate ranked sixth among Illinois metro areas.
Overall, 10 Illinois metro areas added jobs between September 2023 and September 2024. Only two metro areas exceeded the national job growth rate of 1.56%: Carbondale-Marion (1.72%) and St. Louis (2.26%, primarily in Missouri).
The biggest loser was the Davenport area, losing 1.69% of its jobs. Danville saw declines of 1.11% and Bloomington of 1.1%.
The Chicago-Naperville-Arlington Heights metro division has added just 1,000 jobs during the past 12 months, meaning a growth of 0.03 percent.
St. Louis accounted for the largest share of job growth. It was 80.75% of all job growth among metro areas. Much of this went to Missouri, which shares the St. Louis metro area.
The Illinois job market continues faces ongoing issues. Slow job growth and high unemployment mark a struggling state economy. A large exodus of skilled workers does not help.
High tax rates are the top reason the state continues to hemorrhage skilled workers.
Illinois’ state and local tax burden is the highest in the Midwest. Illinois 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. Now state politicians are pushing a ballot question with potential to hit 23,740 small businesses with a 61% hike in their marginal state income tax rate.
Recent income tax hikes have already fostered an environment in Illinois that makes it harder for Illinoisans to find work and reduces wage growth prospects for those who are employed.
To grow, the state 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.