Unemployment rates remain high across Illinois metro areas
Despite Illinois’ job market outpacing the national average, all 15 metro areas continue to have higher unemployment rates than the national average.
Illinois’ statewide job market in July gained 12,900 jobs, outpacing the national average of a 0.07% increase, but only two of Illinois’ 15 metropolitan areas made gains from June to July.
The Springfield metro area saw the largest percentage increase in non-farm employment, growing by 500 jobs for a 0.46% boost. The Bloomington area was the only other one to add jobs with 300 more compared to June.
Danville saw the largest percentage decline at 1.49%, losing 400 jobs.
The Chicago metro area lost 1,200 jobs, a 0.03% decline.
Despite some positive job growth, unemployment remains a concern across Illinois. All 15 metro areas reported unemployment rates higher than the national average of 4.5%. Danville faced the highest unemployment rate at 7.9%, followed closely by Decatur at 7.4% and Rockford at 6.7%.
The Chicago area continued to post a high unemployment rate at 6.4%, among the highest in the nation for large cities.
During the past 12 months, nine Illinois metro areas added jobs. Champaign-Urbana led the metros with a 5.07% growth, adding 6,200 jobs since July 2023. The Carbondale-Marion metro followed with a job growth of 2.07%.
The biggest loser was the Davenport area, losing 1.71% of its jobs. Danville and the Lake County-Kenosha County areas also saw declines.
The Chicago-Naperville-Arlington Heights metro division has lost 1,000 jobs, a 0.03% decline during the year. The nation added 1.61% to its workforce in that time.
The St. Louis area accounted for the largest share of job growth. It was 69.87% of all job growth among metro areas, but much of the growth was in the Missouri portion of the St. Louis area. The Champaign-Urbana area was second at 15.8%.
Illinois employment growth exceeded pre-pandemic levels but trailed behind the national economy, with the state adding 0.25% more jobs. Nine areas continued to report fewer jobs than over four years ago.
The Chicago-Naperville-Arlington Heights area showed mixed results across industries. While sectors such as manufacturing, education and health services, and government saw job gains, others including retail trade, information, and professional and business services experienced losses.
While the Illinois job market shows some resilience, it faces ongoing issues. Persistently high unemployment shows there is much work to be done. A large exodus of skilled workers does not help.
Illinois has many advantages including Chicago’s status as an economic hub, the state’s extensive transportation infrastructure, and its diverse economy. Despite this, Illinois continues to come up short because of poor public policy decisions.
Historically, high taxes have been the No. 1 reason Illinoisans considered leaving 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. 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.
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. Rising income and property taxes have made housing less affordable in Illinois and reduced returns on housing investment relative to other states.
To promote job growth, 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.