July Unemployment Continues Downward Movement

CHICAGO - The Illinois seasonally adjusted unemployment rate dropped -0.1 point to 10.3 percent in July, according to data released today by the Illinois Department of Employment Security. July marks the seventh consecutive month to show steady or declining rates. The national unemployment rate is unchanged at 9.5 percent.

"Trying to find big-picture meaning in monthly economic data is not as productive as evaluating the broader trends that are built over time. This longer view, rather than monthly snapshots, provides the context necessary to understand where we are at and where we might be going," IDES Director Maureen O'Donnell said. "Regardless of July's unusual circumstances, workers must use this time to identify gaps and obtain skills which will position them for opportunities in this emerging economy."

June's preliminary negative job growth report (-200) was revised to + 3,900 in accordance with the federal Bureau of Labor Statistics. Through June, Illinois has added jobs for six consecutive months for the first time since April 2006. Prior to this six-month trend, Illinois had reported job losses for 20 consecutive months. An unanticipated work stoppage, which has ended and work has resumed, and the conclusion of temporary Census 2010 positions caused July's payroll to fall  20,200. The fall was expected because the majority of the payroll loss was a result of that work stoppage. The figure is subject to revision. Illinois has added +43,500 private-sector jobs so far this year.

Illinois' Manufacturing sector added +3,800 jobs in July, the fifth consecutive monthly gain and the sector's best showing since April 1995. Illinois outpaces the nation in adding manufacturing jobs, 2.2 percent compared to 1.6 percent, so far this year. Educational and Health Services added +2,200 jobs, its sixth month-over-month gain in the past seven months. Professional and Business Services added +400 jobs, its fifth gain in the past seven months. So far this year, the sectors leading Illinois' growth are Professional and Business Services (+17,100); Manufacturing (+12,200); Educational & Health Services (+12,100) and Trade, Transportation & Utilities (+10,800).

Nationally, the unemployment rate was unchanged in July and remained at 9.5 percent. The nation lost -131,000 positions in July. The expiration of -143,000 temporary Census 2010 workers outpaced the +71,000 positions added in the private sector. So far this year, the Illinois economy has grown 0.7 percent; the national economy 0.5 percent.

The three-month moving average of Illinois unemployment is down -0.3 points to 10.5 percent in July, the third consecutive monthly decline following 41 straight months of increases. Nationally, the three-month moving average declined -0.1 point to 9.6 percent.  The unemployment rate is not the same measure as those collecting unemployment benefits. The rate identifies those who are out of work and seeking employment. Unemployed workers collecting benefits are counted separately. A person who exhausts unemployment insurance benefits, or is ineligible for benefits, still will be reflected in the unemployment rate if they are actively seeking work.

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.

Notes:

• Illinois monthly labor force, unemployed and unemployment rates for years 1976-2009 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 unemployment insurance claims inputs. Comments and tables distributed for prior Illinois unemployment rate news releases should be discarded because any analysis, including records, previously cited might no longer be valid.

• Seasonally adjusted employment data for subsectors within industries are not available.  For not-seasonally adjusted jobs data with greater industry detail, go to http://lmi.ides.state.il.us/cesfiles/cescurrent.htm .

• "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.

• 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 .