Illinois job growth less than half of Midwest’s in past year


The information sector remains a bright spot in an otherwise challenging Illinois job market, but unemployment has pulled even with the national rate.

Illinois lost 2,200 jobs from August to September 2025 and saw its unemployment rate hold at 4.4% – the same as the national rate – with about 287,000 residents actively looking for work.

Illinois’ job growth was only 0.4% during the previous year, less than half the 0.9% growth seen by neighboring states. Missouri’s performance was the strongest, with 48,900 new jobs and 1.63% growth, or more than four times Illinois’ rate.

The information section was a bright spot in Illinois. It grew at 6.49% and created 5,800 jobs during the past 12 months.

Illinois’ unemployment rate of 4.4% was the 13th highest in the nation. Illinois was ahead of states such as California, Nevada and Oregon. It was behind neighboring states such as Wisconsin at 3.1%, and Indiana and Iowa, both at 3.7%.

While Illinois’ unemployment rate has declined modestly in recent months, that’s largely because people stopped looking for work. Illinois’ labor force participation rate has declined from 65.1% in December 2024 to 64.1% in September 2025. Illinois’ labor force level is down by 83,880, while the unemployment level is down 37,042 since the start of the year.

The state’s job growth has been disappointing during the past year. From September 2024 to September 2025, Illinois increased only 0.4%, adding 24,400 jobs. That is far short of the national rate of 0.83% and places Illinois 37th. If Illinois had matched the national rate, the state would have created 50,947 jobs. South Carolina led all states in relative terms with a 2.3% growth rate, or 54,300 jobs.

Considering only private sector performance, just five of 11 industries in Illinois saw job growth during the past year, but only three of those 11 sectors grew faster than the same industries in neighboring states.

Missouri led job growth among neighboring states with 48,900 new jobs and 1.63% growth, more than four times Illinois’ rate.

Looking at longer-term trends, Illinois continues to struggle with pandemic recovery. Since January 2020, Illinois has gained only 21,700 jobs, representing just 0.35% growth compared to its pre-pandemic workforce. This recovery rate ranks 46th out of 50 states nationally and last among neighboring states.

The primary culprit in the state’s slow economic growth and high unemployment is an unfriendly business environment resulting from high taxes and burdensome regulations.

Illinois’ state and local tax burden is the highest in the nation. The state also levies the third-highest state corporate income tax in the nation and the state’s tax code is among the least friendly for businesses in the Midwest.

Illinois has many advantages such as its diverse economy, central location and strong infrastructure. To take advantage of this, Illinois must strengthen its fiscal position, remove regulatory burdens and provide real tax relief both to workers who are already finding it difficult to remain and to job creators who are desperately trying to stay.