PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

MEDIA CONTACT: Rachel Wittel (312) 607-4977

Illinois saw nation’s largest spike in new initial unemployment claims 
Initial unemployment claims in Illinois spiked three times higher than the national average on a percentage basis

CHICAGO (Oct. 16, 2020) – Illinois experienced the country’s highest surge in new initial unemployment claims last week, signaling the state’s economic recovery from the COVID-19 crisis could be stalling. 46,072 additional Illinoisans filed for unemployment last week, according to U.S. Department of Labor data released Thursday. That’s 9,805 more people compared with the prior week ending Oct. 3 – a 27% spike.

Illinois’ spike in claims was not only the largest numeric increase in the nation, but it was also three times higher than the national average of 9%.

This comes as Illinois Department of Employment Security (IDES) data released today show Illinois lost 12,000 jobs from August to September as the national economy continued to add jobs. Prior to the COVID-19 downturn, this stands as the worst monthly job loss in Illinois since July 2010. Illinois’ unemployment rate of 10.2% remains nearly 30% higher than the national average of 7.9%.

If Illinoisans choose to adopt Gov. J.B. Pritzker’s progressive tax hike on Nov. 3, around 100,000 small businesses would see state income tax hikes of up to 50%, leading to further permanent jobs loss.

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

“With less than three weeks until Illinoisans vote on the governor’s income tax hike, it’s extremely alarming to see more and more Illinoisans losing their jobs and asking for help. Illinois has failed to keep pace with the rest of the country in getting people off of unemployment rolls and back to work for months, and the state is falling further behind the national average for recovery.

“Illinoisans’ livelihoods are at stake this year. The small businesses that create the majority of the state’s new jobs are struggling to survive, and instead of investing in our job creators and the neighborhoods they support, the governor wants them to pay up to 50% more in taxes. If Illinois wants to avoid closing more neighborhood businesses for good and keep up with the national recovery, it must avoid hiking taxes.”

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.