Weak jobs numbers across the Midwest reflect the possibility of an oncoming economic slowdown. In fact, it would not be surprising to face a recession in the upcoming months, given that U.S. jobs growth has been weakening, and it has been seven years since the previous recession ended – a long period of expansion by historical norms.
A new report from the Illinois Department of Employment Security shows Illinois gained 5,400 jobs in April, but the state’s unemployment rate ticked up to 6.6 percent, tied for highest in the U.S.
Illinois gained 14,700 payroll jobs on net in March, and compared relatively well with other states in the region for the month, trailing only Ohio in monthly jobs growth. Despite this growth, however, the unemployment rate increased to 6.5 percent. The state also lost 3,100 manufacturing jobs on net.
Monthly reports from the Bureau of Labor Statistics and the Illinois Department of Employment Security allow the public to see Illinois’ record for job creation and unemployment. Understanding the components of the reports, what they measure, and the significance of the data are key to assessing the state’s economic health.
From the first quarter of 2001 until the second quarter of 2015, business establishment growth has been 34 percent while jobs growth has been only 1 percent.
Illinois lost 3,000 jobs on net in 2015, while other neighboring and Great Lakes manufacturing states all gained tens of thousands of jobs on net for the year.
Chicago’s $1.15 billion projected budget gap is the latest in a decades-long string of structural deficits. Making Chicago’s high taxes worse is not the solution.