Illinois’ unemployment rank hits 12th in U.S.: best since pandemic

Illinois was No. 12 in the U.S. for its June unemployment rate. It’s not been ranked that low since before the pandemic. Still, the state trails the national average thanks to anemic private-sector growth.

Illinois’ unemployment rate decreased to 4.6% in June, according to the U.S. Bureau of Labor Statistics. This translates to approximately 307,000 Illinoisans who are actively looking for work.

Illinois’ unemployment now ranks as 12th highest in the nation. It was before the pandemic when Illinois last ranked that low.

The unemployment rate remains higher than most neighboring states and the national average of 4.1%.

Between June 2024 and June 2025, Illinois added 35,000 jobs, representing a growth rate of 0.57%. That puts the state 38th nationally for job growth, and well behind the national average.

Local government added 19,900 jobs and state government 3,800 jobs, making taxpayer-dependent hiring the state’s biggest job market. Private education and health services growth was strong, accounting for an additional 22,900 new jobs.

Significant job losses were seen in the federal government sector, which cut 2.42% of its Illinois workforce or 2,000 positions. Manufacturing continues to suffer, losing 6,500 jobs, with professional and business services shedding 8,100 positions.

Illinois ranked second to last in job growth among neighboring states from June 2024 to June 2025 at 0.57%. Kentucky reported the strongest job growth at 1.09%.

Illinois’ job recovery rate since the pandemic has been notably slow, ranking 44th in the nation. With only 34,300 more jobs than in January 2020, Illinois had a 0.56% increase compared to pre-pandemic levels.

June ended 58 consecutive months during which Illinois had an unemployment rate that ranked in the 10 highest for the nation. Illinois has been among the 10 worst states for 66 of the 78 months 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 because of high taxes resulting from a constantly mismanaged budget.

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.