Small Business Saturday: Small businesses create 99% of Illinois jobs 
In Cook County, businesses with fewer than 20 employees have been the only firms to add jobs on net since the pandemic – creating nearly 65,500 jobs

CHICAGO (Nov. 26, 2025) – Illinoisans will have an extra reason to “shop small” on Small Business Saturday, Nov. 29.

According to the Illinois Policy Institute, nearly 99% of net new jobs created since the pandemic have come from businesses with fewer than 20 employees – or about 172,000 jobs total. These businesses created over 19,000 jobs just last year, accounting for 89% of all net new Illinois jobs in 2024.

Since 2020, small businesses or businesses with fewer than 50 employees have been the only firms to add jobs on net. All other employer groups, including large headquarters, remain over 66,000 jobs below pre-pandemic levels.

This comes as state lawmakers have passed 70 tax and fee hikes during the past 15 years, many on businesses, resulting in $110 billion in extra taxes paid during that time. Illinois hands businesses the third-highest corporate income tax rate, the fourth-heaviest regulatory burden in the nation and a Top 10 worst unemployment insurance tax structure.

“These job gains come despite Illinois’ challenging business climate – where lawmakers continuously hike taxes and fees on businesses in order to balance their bloated budgets,” said Bryce Hill, director of fiscal and economic analysis at the Illinois Policy Institute. “Illinoisans will thank their neighborhood businesses this Small Business Saturday. Lawmakers should, too. Supporting a friendlier tax and regulatory environment should be a top priority for leaders across the state.”

Last year, businesses with under 250 employees were the only firms to add any net new positions in the state. Large employers with 500 or more workers eliminated more than 11,000 jobs on net.

What to know about Illinois’ small business environment: 

• Illinois is more dependent on small businesses than the rest of the country: Nationally, firms with fewer than 20 employees were responsible for 81% of net job growth since 2020; in Illinois the figure was 99%. Last year these businesses created 58% of new jobs nationwide but 89% in Illinois.
• Small businesses have been leading job creators for over a decade: From 2010 to 2020, before the pandemic, businesses with fewer than 50 employees accounted for 64% of Illinois’ job growth – nearly 314,000 jobs.
• Small businesses deliver faster wage growth for workers: Small business wages have grown 8% faster than the statewide average and 24% faster than wages at the largest companies. Since 2020, wages at businesses with fewer than 50 employees have grown 30.6% compared to mid-sized firms at 28.7% and large employers at 24.6%.

In Cook County, businesses with fewer than 20 employees have been the only firms to add jobs on net since the pandemic – creating nearly 65,500 jobs.

Last year, businesses with fewer than 20 employees added nearly 14,000 jobs – 91% of the jobs created in the county. The largest firms in the county, with 500-plus employees, lost more than 5,500 jobs last year.