Stagnant National Growth Squeezes Illinois Labor Market

CHICAGO – The Illinois seasonally adjusted unemployment rate for August increased to 9.9 percent, according to preliminary data released today by the U.S. Bureau of Labor Statistics and the Illinois Department of Employment Security (IDES).

Illinois added +3,100 jobs in August, while nationally there was zero job growth because reductions in government employment offset private sector gains. The national unemployment rate for August was unchanged at 9.1 percent. 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.

“Consumer confidence drives our nation’s economy. That confidence was shaken by events at the national level,” IDES Director Jay Rowell said. “It is difficult for any state economy to establish positive momentum while the nation’s jobs growth picture remains sluggish.”

Illinois has added +36,300 jobs so far this year and +79,600 jobs since January 2010 when job growth returned to Illinois after 23 consecutive months of declines. January 2010 also marked the plateau of the unemployment rate after 33 consecutive month-over-month increases. Since, the monthly unemployment rate has declined 15 times and increased four when compared to the previous month.

Since January 2010, leading growth sectors are Professional and Business Services (+36,600); Educational and Health Services (+25,800); Manufacturing (+19,700); and Trade, Transportation and Utilities (+17,200). Compared to August 2010, employment in Illinois is up +42,400 led by Educational and Health Services (+14,800); Professional and Business Services (+11,800); and Manufacturing (+11,500).

In August 2011, unemployed individuals increased 25,400 (4.0 percent) to 653,000 compared to July. Total unemployed has declined -87,100 (-11.8 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

Illinois Seasonally Adjusted Non-farm Jobs – by Major Industry

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.