CHICAGO (Oct. 20, 2016) – Despite gaining 7,400 payroll jobs in September, the state’s workforce shrank for the fifth consecutive month, according to an economic release today from the Illinois Department of Employment Security, or IDES. The unemployment rate stayed steady at 5.5 percent even though 5,500 people dropped out of the workforce. More than half of the workforce dropout is attributable to unemployed people leaving the workforce. Illinois’ workforce has contracted by more than 100,000 over the course of the warm summer months.

Jobs losses and gains varied through different sectors of the economy. Many white-collar sectors saw job gains in September, but manufacturing experienced another month of losses on the heels of a loss of 4,100 manufacturing jobs in August. Manufacturing has shed 8,500 jobs year to date, after losing more than 6,000 jobs in 2015. 

Including manufacturing, other notable areas affected positively or negatively in September include:

• Professional and business (+5,100 jobs)
• Education and health (+1,500 jobs)
• Financial activities (-1,300 jobs)
• Manufacturing (-800 jobs)

“Illinois’ position in the regional economy has suffered over the last decade as the state – and local – tax burden has grown. Meanwhile, business regulations remain costly and prohibitive, especially for industrial occupations,” said Michael Lucci, vice president of policy at the Illinois Policy Institute. “Illinois will continue to see out-migration of its working-age population until the state brings its tax burden under control and fosters more job creation.”

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