Illinois’ pension crisis has been a growing problem for decades, and its negative effects on state residents are well documented.1 Economic fallout from the COVID-19 pandemic and related government shutdown orders threaten to bring that long-running crisis closer to its breaking point. The state’s five pension systems collectively held nearly $139 billion of debt at...View Report
While Illinois claws back jobs from the COVID-19 associated downturn, in-depth analysis shows why the state is struggling more than most other states’ economies.
Delinquent mortgages nearly doubled to 124,000 amid COVID-19’s soaring unemployment, and inaction by state and local governments.
The Illinois Department of Employment Security troubles included scores of unemployed unable to get benefits, nearly 32,500 Social Security numbers exposed and now benefits theft. A simple fix used by many online retailers could have prevented the thefts.
Illinois is the largest state without a short-time compensation plan, increasing the chances nearly 32,000 job losses will be permanent.
Data published last week by the Bureau of Economic Analysis revealed that U.S. gross domestic product shrank at an annualized rate of -32.9% during the second quarter.
Most other states have recouped more of their February-April job losses from the pandemic shutdowns than Illinois.
With small businesses and seasonal attractions closed, most of Illinois’ youth find themselves spending a summer without a job. COVID-19 isn’t the only reason, however.
Illinois’ second minimum wage increase this year is part of a plan to hit $15 an hour in 2025. Small businesses face tough decisions on cutting staff or raising prices.
Peoria’s financial problems grew critical from the coronavirus, but the long-term threat of pension debt will remain even after more severe cuts are made.
New jobless claims remain several times higher than last year as state begins to test re-opening.