Illinois adds 21,200 jobs, but trails most neighboring states in growth
Despite Illinois experiencing job growth in some sectors, it remains one of the states with the highest unemployment rates. It’s been that way for 66 of the 77 months J.B. Pritzker has been governor thanks to high taxes and too much state spending.
Illinois’ unemployment rate was tied for 7th highest in the U.S. in May 2025, with a 4.8% unemployment rate and 319,000 residents looking for work.
Illinois’ unemployment rate continued to exceed the national average of 4.2% in May, according to the U.S. Bureau of Labor Statistics. It was higher than in any neighboring state.
Illinois saw a job growth of 21,200 during the past year, compared to May 2024. The growth rate for Illinois was only 0.35%, which ranked the state 44th in the nation.
Illinois saw the highest growth rates in the information sector, adding 2,200 jobs for a 2.43% increase. Other sectors with strong growth rates were private education and health services with 16,100 new jobs and state government with 2,300 new jobs.
Meanwhile, the federal government sector saw the largest net decline during the 12-month period, reporting 2.18% fewer positions from a year earlier. The professional and business services sector lost 8,600 positions and the manufacturing sector also saw a sharp decline of 5,300 jobs.
Illinois saw modest gains in 6 out of 11 industries, not including government.
Illinois ranked second-to-last for its job growth rate among neighboring states from May 2024 to May 2025 at 0.35%. Michigan reported the strongest job growth at 1.09%.
Illinois’ job recovery rate since the pandemic has been slow, ranking 45th in the nation. With only 25,200 more jobs than in January 2020, this accounted for only a 0.41% increase compared to pre-pandemic levels. This ranks second-to-last among neighboring states in post-pandemic recovery.
For 58 consecutive months, Illinois has had an unemployment rate that ranks among the top 10 in the nation. Illinois has maintained this for 66 of the 77 months that Gov. J.B. Pritzker has been in office.
The primary culprit in the state’s slow economic growth and high unemployment is an unfriendly business environment thanks to high taxes resulting from a constantly mismanaged budget.
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.
Despite this, the state continues to overspend by adding $15 billion to its general funds budget since 2019. 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 advantage of this, 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.