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FOR IMMEDIATE RELEASE
August 18, 2011

National Instability Causes Bump in Job Recovery
Manufacturing Jobs Up 4th Straight Month; 11,300 since Last Year

CHICAGO – The Illinois seasonally adjusted unemployment rate for July increased to 9.5 percent as 24,900 fewer jobs were reported, according to preliminary data released today by the U.S. Bureau of Labor Statistics and Illinois Department of Employment Security (IDES). The data reflects uncertainty in consumer confidence and the volatility associated with data management.

July is the third consecutive month to record an increase in the unemployment rate following 15 consecutive months of declines. Including the preliminary job loss, Illinois has added 28,900 jobs so far this year and 72,200 jobs since January 2010, when job growth returned to Illinois after 23 consecutive months of declines.

“This preliminary data reflects the recent volatility in the national economy and the uncertainty both in the labor force and business community,” IDES Director Jay Rowell said. “Although monthly data fills our need for immediacy, long-term data tells a more accurate story.”

Uneven monthly reports of job growth and unemployment rates are common in a typical recovery. However, to ensure more reliable national statistics, federal authorities earlier this year implemented methodological changes to data estimation that reduces input from individual states. As a result, there have been greater fluctuations in monthly jobs and employment data at the state level. How those changes might be reflected in July’s data will not be known for several months. Most private economists agree that the recovery from the national recession will continue, but at a more gradual pace in the second half of the year.

The uneven progress is evident in the job growth numbers. Since January 2010, Illinois has added, on average, about 3,800 jobs each month. In the first half of this year, Illinois added about 9,000 jobs each month. By contrast, during the national recession, Illinois lost, on average, 18,000 jobs each month.

Since January 2010 when Illinois employment resumed after the national recession, Illinois has added +72,200 net new jobs. Leading sectors are Professional and Business Services (+34,200); Educational and Health Services (+26,000); Manufacturing (+20,000); Trade, Transportation and Utilities (+16,000).  Compared to last year, Manufacturing employment is up +11,300 over its July 2010 level.

In July, the number of unemployed individuals increased 24,300 (4.0 percent) to 627,800. Total unemployed has declined -112,300 (-15.2 percent) since January 2010 when the state unemployment rate peaked at 11.2 percent. The unemployment rate identifies those who are out of work and seeking employment. A person who exhausts benefits, or is ineligible, still will be reflected in the unemployment rate if they actively seek work.
 
The IDES supports economic stability by administering unemployment benefits, collecting business contributions to fund those benefits, connecting employers with qualified job seekers, and providing economic information to assist career planning and economic development. It does so through nearly 60 offices, including Illinois workNet centers.

Seasonally Adjusted Unemployment Rates

 
July
2011
June
2011
July
2010
3-Month
Moving Avg.
Illinois
9.5%
9.1%
10.1%*
9.2%
U.S.
9.1%
9.2%
9.5%*
9.1%
* Revised

Illinois Seasonally Adjusted Non-farm Jobs – by Major Industry

Industry Title
July
2011*
June
2011**
July
2010**
Over the Month Change
Over the Year
Change
3-Month
Moving Avg.
Change from
Previous
3-Month
Mov. Avg.
Total Nonfarm     
5,652,700
5,677,600
5,601,600
-24,900
51,100
5,671,700
-9,100
Mining
9,500
9,400
9,200
100
300
9,400
0
Construction     
203,500
207,800
188,100
-4,300
15,400
205,800
200
Manufacturing    
573,200
572,100
561,900
1,100
11,300
571,900
1,500
Trade, Transportation, & Utilities
1,134,800
1,142,700
1,127,000
-7,900
7,800
1,140,700
-3,500
Information      
97,800
97,500
101,000
300
-3,200
97,500
500
Financial Activities
356,700
355,700
360,400
1,000
-3,700
355,900
1,100
Professional and Business Services
814,500
815,900
803,600
-1,400
10,900
816,500
-1,800
Educational and Health Services
847,700
845,200
831,600
2,500
16,100
847,300
-300
Leisure and Hospitality
516,400
523,100
512,900
-6,700
3,500
519,800
-2,100
Other Services   
252,400
256,500
254,000
-4,100
-1,600
255,900
-2,500
Government        
846,200
851,700
851,900
-5,500
-5,700
851,000
-2,300
 
                              * Preliminary                    ** Revised
 

 

Notes:


• Illinois monthly labor force, unemployed and unemployment rates for years 2006-2010 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, non-farm jobs and unemployment insurance claims inputs. Data were also smoothed to eliminate large monthly changes as a result of volatility in the monthly household (CPS) survey. Comments and tables distributed in prior Illinois unemployment rate news release materials 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.



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