PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

MEDIA CONTACT: Hilary Gowins (312) 607-4977

Illinois’ economy shrank by $86 billion from April through June, according to new estimate
Illinois lost an estimated $940 million per day in the second quarter of 2020 amid the COVID-19 crisis and associated lockdowns

CHICAGO (Aug. 6, 2020) – As Illinois struggled with state-mandated lockdowns amid the COVID-19 crisis, Illinois Policy Institute analysis reveals the state’s economy shrank by an estimated $86 billion from April through June, or $940 million per day. These figures come from national data released July 30, estimating the U.S. gross domestic product (GDP) suffered its largest quarterly decline on record.

Just ahead of federal jobs data for July expected tomorrow, the Bureau of Economic Analysis found national GDP shrank at an annualized rate of 32.9% in the second quarter of this year, compared to just 5% during the first quarter of 2020. Institute experts believe these reports should influence the debate surrounding another federal stimulus bill, and the primary goal of public policy decisions should be to prevent mass business failure and bolster a strong economic recovery.

U.S. Department of Labor data show 24,712 Illinoisans filed for unemployment in the week ending Aug. 1, bringing total new jobless claims to 1.55 million since COVID-19 started impacting Illinois’ economy.

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

“While Washington is rightly focused on short-term stimulus to keep the economy afloat, Illinois’ political leaders can and must create a strong foundation for small businesses to recover from the pandemic and its associated lockdowns and to thrive long term.

“As COVID-19 persists, more businesses are failing and more jobs are being eliminated permanently. The progressive income tax rates approved by Illinois legislative bodies – a more than $3 billion tax increase in the middle of a global pandemic – would magnify the economic losses and hinder the recovery.”

To read more about the economic impacts of the COVID-19 pandemic on Illinois jobs, visit: illin.is/covidjobless.

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