Illinois loses 1,700 jobs in 2025 while nation adds 584,000

Illinois’ unemployment continued a long-term trend of remaining higher than the national rate as 2025 ends with lost jobs as the nation gained.

Illinois lost a total of 1,700 jobs in 2025, while the United States added 584,000 jobs, according to new employment data.

Illinois’ unemployment rate was 4.6% in December, above the national rate of 4.4%. There were nearly 302,000 Illinoisans looking for work.

Illinois’ job growth trailed all neighboring states. Missouri led the region by adding 52,800 jobs in 2025.

The information sector remained a bright spot, with 4,500 jobs added in 2025. Chicago was recently recognized as the No. 4 tech hub.

Illinois’ unemployment rate of 4.6% is the 11th-highest among states. Neighboring states were all below 4%.

Illinois’ unemployment rate reflects 302,000 Illinoisans who are actively looking for work but have not yet found it.

More than 108,000 Illinoisans left the workforce entirely during 2025 as the labor force participation rate declined from 65.1% in December 2024 to 63.8% in December 2025. The labor force participation rate measures the percentage of people working or looking for work. Many of the Illinoisans who left the workforce gave up looking for work and are not counted in the unemployment stat.

Illinois was one of 16 states that lost jobs in 2025. Illinois’ decline of 1,700 jobs places it 35th for job creation.

Illinois’ employment picture varied widely across industries.

The information sector showed the strongest growth, followed by mining, logging and construction, and private education and health services.

Significant losses occurred in federal government employment, retail trade and manufacturing.

Only five of 11 private sector industries in Illinois saw job growth during the past year. Just three of those 11 sectors grew faster than the same industries in neighboring states.

Among its neighbors, Illinois was the only state to lose jobs.

Missouri led the region with 52,800 jobs created, followed by Michigan, Kentucky, Indiana, Wisconsin and Iowa. On net, these states gained 110,400 jobs.

Illinois continues to underperform in job creation compared to neighboring states in many sectors, especially retail trade and manufacturing. The information sector is an exception. Neighboring states have lost information sector jobs where Illinois has gained about 4,500 during the past 12 months.

Illinois’ job market has struggled to recover since the pandemic. Since January 2020, the state has gained only 18,400 jobs. Illinois’ job recovery ranks 46th in the nation.

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 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.