Monthly jobs tracker: over 300,000 prime working-age Illinoisans still unemployed
PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE
CONTACT: Melanie Krakauer (312) 607-4977
Black workers suffer most from Illinois’ slow recovery from COVID-19
Monthly jobs tracker: over 300,000 prime working-age Illinoisans still unemployed
CHICAGO (July 22, 2021) – More than 300,000 prime working-age Illinoisans, between 25 and 54, are still out of the job market thanks to the COVID-19-induced economic downturn.
The nonpartisan Illinois Policy Institute found major disparities exist between ethnic and racial demographic groups when it comes to the pandemic’s damage to the labor market. Despite the labor market recovery, the employment rate of Black workers is 5.4 percentage points lower when compared to a year ago. Almost every other group saw a year-over-year increase in employment.
Original research also shows Black prime working-age Illinoisans have been hit hardest by COVID-19, with that group’s employment still 11.3% lower than projected in the absence of the pandemic. In comparison, employment is 7.4% lower than projected for prime working-age white Illinoisans and 8.3% lower for prime working-age Hispanic Illinoisans.
Overall, Illinois is still missing roughly half of the jobs lost during the pandemic and 443,500 Illinoisans still remain unemployed.
Economists warn against business tax hikes, especially during periods of sluggish economic activity, and the new taxes in Gov. J.B. Pritzker’s budget will hurt Illinois’ pandemic recovery. In addition, the combined effect of higher unemployment benefits, suspension of job search requirements and large federal stimulus payments has reduced Illinoisans’ job search intensity, contributing to slower employment growth.
Illinois’ monthly job numbers:
Illinois’ jobs growth increased for the second month in a row. According to new Illinois Department of Employment Security data, Illinois added 12,500 jobs from mid-May to mid-June. Meanwhile, the state’s unemployment rate rose again to 7.2%, making it 44th in the nation. Illinois’ unemployment rate has consistently been higher than the national average, which sits at 5.9%
The greatest jobs increase came from the leisure and hospitality sector, which added 10,700 jobs. Trade, transportation and utilities gained 3,400 jobs, construction added 2,100, other service industries added 800 and financial activities increased by 100 jobs.
The industries that lost jobs during June were professional and business services with the greatest decline of 3,700 jobs, manufacturing by 2,500 jobs, information decreased by 200 jobs and mining by 100 jobs.
Orphe Divounguy, chief economist at the nonpartisan Illinois Policy Institute, offered the following statement:
“Illinois needs to stop ignoring the disproportionate effects of the pandemic. Focusing on good public policy is the only way to stop exacerbating the problems.
“Not only have Black Illinoisans been most negatively affected by the economic downturn, they have been completely left out of the recovery. While most racial and ethnic groups saw a year-over-year increase in employment, the employment rate of Black Illinoisans continues to decrease. Many factors are at play here – population losses due to outmigration, higher business taxes that disproportionately harmed the manufacturing sector, a failure to follow other states in requiring unemployment insurance recipients to look for work and local governments lacking the fiscal space to stop slashing jobs.
“Breaking the cycle of disinvestment in Illinois, especially in lower-income neighborhoods, will require pension reform. This way we can help overburdened taxpayers, especially the groups most seriously affected by the COVID-19 pandemic.”
To read more about the economic impacts of the COVID-19 pandemic on Illinois jobs, visit: illin.is/covidjobless.
For bookings or interviews, contact media@illinoispolicy.org or (312) 607-4977.