* After falling for 16 straight months, Illinois’ unemployment rate has risen each of the last three months. Could January’s income tax hike have caused this? Nope, says the governor’s budget office…
Kelly Kraft, a spokeswoman for Quinn’s budget office, said there is “no connection” between the tax increases and the unemployment increase.
Others aren’t so sure…
Shattuck said the tax increase, and Illinois’ overall business climate, are part of the uncertainty employers hate.
“That’s why there are so many businesses hoarding cash; they want to be able to pay the bills,” Shattuck added.
We actually gained 1,100 manufacturing jobs in July, according to the state. Mining, information and financial activities jobs all rose as well.
One reason the unemployment rate kept rising is that 5,500 government jobs disappeared in July. “Trade, Transportation, & Utilities” jobs dropped by 7,900 and “Leisure and Hospitality” jobs fell by 6,700. We also lost 4,300 construction jobs and 4,100 jobs in “other services.”
* But the reality is, the people who run most businesses are not exactly flaming liberals, and they ain’t happy…
A company based in the south suburbs is expected to announce Tuesday that it is relocating, taking 250 Illinois jobs to Indiana.
After 96 years in Blue Island, the Modern Drop Forge Co. is reportedly moving 30 miles east to Merrillville, Ind.
“The taxes are very high and Illinois is not friendly to business anymore,” said one employee with the company.
Sources say Indiana Gov. Mitch Daniels will announce Modern Drop Forge Co., which makes precision tools and metal components, including for Harley Davidson motorcycles, is the latest Illinois company to be lured away by lower taxes and business costs.
* Indiana has been particularly aggressive at recruiting our companies…
The Hoosier State’s Economic Development Corp. launched its “Illinnoyed” campaign, putting 15 billboards up along the state line. It also had an online advertising campaign through Crain’s Chicago Business; EDC spokeswoman Katelyn Hancock said she was told it was the third-most successful online campaign in Crain’s history.
Thirteen businesses representing about 1,000 jobs have committed to moving from Illinois to Indiana this year as a result of the marketing campaign, she said, and she expects more to come.
“Our efforts are still being reaped,” she said. “It takes a long time to relocate.”
Indiana’s unemployment rate also clicked up a bit in July, but its rate is 8.5 percent, a full point below ours.
…Adding… With a hat tip to a commenter…
Over the year, 24 states experienced statistically significant changes in employment, 23 of which were increases. The largest increase occurred in Texas (+269,500), followed by California (+189,600), New York (+106,600), and Ohio (+74,100). The only state with an over-the-year statistically significant decrease was Indiana (-28,300). [Emphasis added.]
Illinois gained 51,100 jobs in the same period.
Archer Daniels Midland Co. is closing a soybean processing facility in Galesburg immediately.
Decatur-based ADM issued a statement late Monday confirming the facility would close, according to WGIL Radio. The closure will cost Galesburg 31 jobs.
ADM says it expects a number of those jobs to be transferred to a different facility.
It’s been one hit after another for that town.
* Back to taxes…
Shattuck said this summer’s legislative hearings into Illinois’ business climate may provide enough stability to convince employers in Illinois to start hiring.
“We’re trying to come up with ways to advance the business climate without costing the state any money,” Shattuck said. “But if we’re going to lower the tax increase that means other incentives have to go away. But which ones?”
*** UPDATE *** From a press release…
Mayor Rahm Emanuel announced today that EMC Corporation will open a new office and add 200 new jobs in Chicago over the next two years, as the city’s technology sector gets an added boost from a leading provider of information infrastructure and cloud computing technology.
“I am pleased to announce that EMC has decided to open a new office here in Chicago, and to create 200 important jobs for Chicagoans,” said Mayor Emanuel. “EMC is a global leader in information technology, and will drive forward Chicago’s technology economy and presence in this space.”
The new office in Chicago is expected to be open by the end of the first-quarter 2012, and will support EMC’s numerous Chicago-based customers.
* Olin Brass says law helps their business
* The Murky Future Of The Workers’ Comp Reform Law
* Food prices could rise as corn harvests suffer
* Survey: Small raises for salaried workers in 2012: After increasing salaries by 2.6 percent this year and last year, companies are planning a 2.8 percent bump in 2012, benefits and human resources consultancy Towers Watson reported Monday.
* Union agrees to pay cut in Lyric Opera contract
* Google takeover pays off for Motorola employees, too
* Ford, Toyota to work together on hybrid trucks
* Quinn names interim superintendent of Lottery
* LaHood: Rail plan going to be ‘right’ for Springfield
* Plan to reuse prescription drugs stuck on final hurdles - Legislation stalled by concerns about safety, liability
* Landmarks Illinois leader stepping aside Nov. 1
* Fitch Downgrades N.J. Bond Rating: New Jersey has skipped or greatly reduced its payments into the pension fund, contributing to the unfunded liability. The new law requires the state to make its payments, which currently total more than $3 billion a year, but is phasing the requirement in over seven years. This year’s pension payment, one-seventh of the total, was about $500 million.
* S&P replaces president after U.S. downgrade