July Unemployment Rate Edges Up To 10.4 Percent

CHICAGO - The Illinois seasonally adjusted statewide unemployment rate for July is 10.4 percent, an increase of +0.1 percent over June, according to figures released today by the Illinois Department of Employment Security. 

"Slight up or down movements in the unemployment rate at the state and national level are not uncommon in a recession," IDES Director Maureen O'Donnell said. "This economy must push through several phases that include a slower pace of job loss, stagnant job growth and persistent unemployment."

Illinois payroll employment declined by -13,000 jobs in July 2009, but the pace of job loss has decelerated for four consecutive months. The number of unemployed persons increased for the 10th consecutive month to 692,500, reaching its highest level since April 1983.  Nearly 5.7 million people held payroll jobs in Illinois in July, the lowest level since May 1996.

The Manufacturing sector contracted for the 18th consecutive month in July, but the loss of -2,000 jobs was the smallest decline in the last nine months.  Professional and Business Services lost -600 jobs in July and  1,400 in the last 3 months as compared to -31,100 in the preceding 3-month period.  Employment in the Construction sector remained unchanged (+100), its second stable employment month this year.  Jobs declined -5,400 in the Trade, Transportation and Utilities sector, its largest drop in four months.

Nationally, the July unemployment rate dipped to 9.4 percent, down -0.1 percent, and remains near its highest level in more than 25 years.  Total non-farm payroll fell for the 19th consecutive month in July (-247,000), bringing total national job loss to -6.7 million since the onset of the recession in December 2007.  The national employment decline continues to be dominated by the Manufacturing, Professional and Business Services, and Construction sectors, dropping by -2.0 million, -1.5 million and -1.4 million jobs respectively since December 2007.  Illinois has lost -321,400 jobs since the onset of the recession:  94,600 in Manufacturing; -79,700 in Professional and Business Services; and, -46,500 in Construction.

The Illinois Department of Employment Security administers federally funded employment services and unemployment insurance through its nearly 60 offices, including the Illinois workNet Centers. IDES also receives federal grants to provide and analyze labor market statistics and information.

Seasonally Adjusted Unemployment Rates

                                                                  July 2009      June 2009       July 2008
                                           Illinois           10.4%            10.3%*              6.7%*
                                           U.S.                9.4%               9.5%                 5 .8%

*  Revised

Notes:

• Seasonally adjusted employment data for subsectors within industries are not available.
• "Other Services" includes a wide range of activities in three broad categories:  Personal and laundry; repair and maintenance; and religious, grant making, civic and professional organizations.  For a list of all activities under Other Services and all other industry sectors, go to http://www.census.gov/epcd/naics02/naico602.htm .
• For not-seasonally-adjusted jobs data showing greater industry detail, go to http://lmi.ides.state.il.us/cesfiles/cescurrent.htm .
• Monthly seasonally adjusted unemployment rates for Illinois and the Chicago-Naperville-Joliet Metropolitan Division are available at:  http://lmi.ides.state.il.us/laus/icmaur.htm .
• Illinois monthly labor force, unemployed and unemployment rates for years 2004-2008 have been revised as required by the U.S. Bureau of Labor Statistics.  In February of each year, monthly labor force data for all states are revised to reflect updated Census population controls, seasonal factors and state supplied non-farm jobs and UI claims inputs.  The revised monthly data are also smoothed to eliminate large changes as a result of volatility in the monthly household (CPS) survey.  Comments and tables distributed for prior monthly Illinois unemployment rate news releases should be discarded.  Any records and other historical analysis previously cited for Illinois labor force, number of unemployed and unemployment rates may no longer be valid under the revised monthly time series.