PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

MEDIA CONTACT: Rachel Wittel (312) 607-4977

Illinois could have saved 31,795 jobs during COVID-19 downturn with work share program
Illinois is the largest state without a short-time compensation program

CHICAGO (Aug. 13, 2020) – As more than 1 in 7 Illinoisans are still out of work from the COVID-19 crisis and associated state lockdowns, the Illinois Policy Institute found Gov. J.B. Pritzker could have mitigated pandemic-related job losses if he had implemented an unemployment program most states already have.

New Institute research shows Gov. Pritzker could have saved 31,795 jobs by implementing a short-time compensation program, allowing employees to work reduced hours and receive a percentage of their unemployment benefits while still retaining their jobs. It could have saved more jobs than are available to every worker in Danville, Illinois.

Illinois is the largest state without a short-time compensation or work share program. Other large states, such as California, Texas, Florida, New York and Pennsylvania, implemented similar programs to help employers avoid full lay-offs and increase the likelihood residents have jobs to return to following the pandemic. Illinois has had the ability to implement a work share program since 2014, but Gov. Pritzker has refused to act during the current crisis.

U.S. Department of Labor data show 22,387 Illinoisans filed for unemployment in the week ending Aug. 8, meaning a work sharing program would have saved those jobs and then some. The new claims bring total requests for unemployment benefits to 1.58 million since COVID-19 started impacting Illinois’ economy.

Orphe Divounguy, chief economist at the nonpartisan Illinois Policy Institute, offered the following statement:  

“During the past five months, Illinoisans have struggled accessing the state’s unemployment system and receiving the unemployment benefits they need during this uncertain time. The lack of a short-time compensation program has only made this problem more painful for unemployed Illinoisans and has resulted in more permanent job losses.

“While individuals are enduring this harsh reality, small business owners have been the ones forced to shut down or cut staff they can no longer afford. A progressive income tax on top of this would only boost harm to the livelihoods of small business owners and the people they employ.”

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.