* From an e-mail that was forwarded to me by a labor lobbyist…
Wanted to make sure everyone has this as we prepare to testify in the capitol and speak before other groups this year. Governor Rauner and his friends like to say that businesses are leaving Illinois.
I ran this report from the Bureau of Labor Statistics web site. It tracks the number of employers (both public and private sector) in Illinois. As you can see, the number of employers in Illinois has grown in every quarter since the first quarter of 2003.
Thank you.
Jason Keller
Illinois AFL-CIO
Legislative Director
* The spreadsheet…
That’s a 33 percent increase in employers since the first quarter of 2003.
* But what about other states? I asked the lobster to see if he could get Keller to run more numbers and was forwarded this e-mail today…
After I sent the email yesterday regarding the number of employers in Illinois, I was asked by several people how Illinois compares to other states in terms of growth of businesses. I updated the chart (see attached) with the number of business establishments in every state from 2001-2015. Since the first quarter of 2003, when Governor Blagojevich took office and Senate President Emil Jones, Jr. gained control of the State Senate (which is when we first heard the complaint that Illinois was a bad place to do business). I specifically looked at growth in each quarter. This is what I found:
Illinois has seen growth in the number of businesses in the state for approximately 49 consecutive quarters (and hopefully will still continue to increase). 2003-2015. NO OTHER STATE CAN MATCH THAT STEADY AND SUSTAINED GROWTH. None. This means that since 2003, Illinois has not lost one net business (contrary to what we hear from Republicans). Other people may play with the numbers and see other states have a larger percentage growth, but no one can point to such a long term sustained growth of businesses. Illinois weathered the Great Recession without losing growth. North Dakota and Texas come close with the oil and fracking growth – but they still saw a drop in businesses in several quarters. As a reminder, during these years, Illinois labor was successful in passing:
· Minimum wage increases that became effective in 2004, 2007, 2008, 2009, and 2010 – and still businesses grew.
· Numerous times prevailing wage laws were strengthened – and still businesses grew.
· Effective in 2008, employee misclassification law was passed – and still businesses grew.
· Three times in the past 11 years, the workers’ compensation law has been changed – and businesses grew.
· The unemployment insurance law was changed multiple times, through the agreed bill process – and businesses grew.
· Card check for public employees organizing passed in 2003 (PA 93-444) – and businesses still grew.
· Equal Pay Act passed in 2003 (PA 93-0006) – and businesses grew.
· Corporate Accountability passed (PA 93-552) – and businesses still grew.
There were other laws passed, but this gives you a snap shot.
For background, I spoke with an economist at the Bureau of Labor Statistics – the measure of “number of establishments” is the most accurate way to count the number of businesses in the state.
Thank you.
Jason Keller
Illinois AFL-CIO
Legislative Director
See the numbers for yourself by clicking here.
The number of Texas business establishments grew by about 27 percent since that first quarter of 2003. Indiana’s grew by just 4 percent.
* Keep in mind that these numbers include both public and private sector establishments. Even so, it’s something that deserves more attention and investigation.
*** UPDATE *** From the Illinois Policy Institute…
Rich,
We took a quick look at the same survey (QCEW) and same timeline (Q1 2003 - Q2 2015) as in the study you posted. Attached are the rankings.
For 2003-2015 growth, Illinois’ growth ranks 4th for establishments, 43rd for jobs, and 42nd for average weekly wage (AWW).
It’s important to note that the combined weak jobs growth and weak average weekly wage growth is a double whammy. Imagine adding 500,000 new jobs, all paying at the average weekly wage. Great news, right? That would bump up the jobs number and even though it wouldn’t bump up the wage number, we’d all cheer it.
In Illinois’ case, both job growth and average wage growth were bad. So not only is job growth weak, the average wage has grown slowly on that slow-growing job base.
The 2003-2015 timeline included the recession right in the middle. So we also looked at the same data set on the recession recovery timeline, starting from Q1 2010 when everyone had basically bottomed out (after various degrees of collapse, Illinois’ fall ranked among the worst).
For growth over that recovery time period, Illinois’ ranked 4th for establishments, 32nd for jobs, and 45th for average weekly wage (AWW).
Michael
–
Michael Lucci
Vice President of Policy
Illinois Policy Institute
Illinois Policy Action
Click here.
- Honeybear - Thursday, Feb 4, 16 @ 2:44 pm:
Ohhh Myyyyy….this is not the narrative that was supposed to get out! Well well, we don’t suck do we? Turns out businesses are not leaving. Oh this is so delicious. So delicious.
- wordslinger - Thursday, Feb 4, 16 @ 2:45 pm:
Can you Death Spiral up?
- JustRight - Thursday, Feb 4, 16 @ 2:47 pm:
What kind of cherry-picked statistic is this? Employers? Nice try, but the number of those actually employed has dropped and our population has shrunk.
- Ducky LaMoore - Thursday, Feb 4, 16 @ 2:47 pm:
Very interesting. Is there any data on the size of these businesses? The reason I ask, if you are self-employed you are not considered a business. But if you form an LLC and you are the only employee, you would be considered a business. I myself have done something similar. And not that I want to blow a hole in this data, I just want to know.
- CCP Hostage - Thursday, Feb 4, 16 @ 2:50 pm:
Don’t let these pesky facts get in the way of governin’ and campaignin’
- Norseman - Thursday, Feb 4, 16 @ 2:52 pm:
“Quit spoiling the narrative. We want folks to think Illinois is a cesspool so we can enact changes that enhance the wealthy and lowers wages and benefits for the middle class.” Faux Rauner
- Secret Square - Thursday, Feb 4, 16 @ 2:56 pm:
So, if one Illinois resident starts a sole proprietorship business with no employees other than himself (as I did last year) while a factory that employed, say, 500 people goes out of business — according to this report, it all balances out and IL suffers no net loss?
- Tone - Thursday, Feb 4, 16 @ 2:58 pm:
And yet we have less jobs still than 10 years ago.
Idiots.
- Honeybear - Thursday, Feb 4, 16 @ 3:01 pm:
This is the way to attack the Rauner administration. Data, clearly stated, clearly cited. Perfect job
- Happy Gun Owner - Thursday, Feb 4, 16 @ 3:02 pm:
“Employers” does not always equal “employees”. How many of these “employers” are shell companies, s-corps, side businesses, etc. Nowadays, many people have Etsy businesses, Amazon businesses, and the like - are they all employers? No.
As always when it comes to labor disputes between the left and the right, I am sure the reality or truth is somewhere in the middle. Our state is not as bad as Rauner and the newly empowered GOP make it out to be, and it certainly is not as great as the unions make it sound.
- walker - Thursday, Feb 4, 16 @ 3:04 pm:
Shows once again that Illinois is a very good state for start ups, not so good for growing mature businesses.
- 47th Ward - Thursday, Feb 4, 16 @ 3:04 pm:
Yes, but how many bidnesses were started in Illinois?
- Ducky LaMoore - Thursday, Feb 4, 16 @ 3:05 pm:
@Secret Square
That is kind of my point. The actual number of businesses isn’t that relevant of a statistic.
- Obed - Thursday, Feb 4, 16 @ 3:06 pm:
So it sounds like it’s not as tough to start a business as we’ve been told. It also appears that a large number of employers haven’t shied away from Illinois as a place to start up and do business.
Now, we may find out that employers aren’t always the amazing job creators that the Governor and others claim they are, but let’s go back to blaming unions. Yeah, that’s the ticket.
- Dey tekur jerbs! - Thursday, Feb 4, 16 @ 3:08 pm:
I’m sure it’s a pure accident that they don’t report how our job growth and wage growth compares, using the same data source.
- 360 Degree TurnAround - Thursday, Feb 4, 16 @ 3:10 pm:
According to the BLS website, this data is collected in conjunction with IDES. This blows a hole in the whole reason Rauner says we need a turnaround agenda.
- 360 Degree TurnAround - Thursday, Feb 4, 16 @ 3:11 pm:
Ducky - the table above says this is for businesses of all sizes.
- Bill White - Thursday, Feb 4, 16 @ 3:15 pm:
What this shows is that STARTING a business is not as difficult in Illinois as is often claimed.
Of course, starting and sustaining are different things.
Sustaining a business requires customers with money to spend; thus suppressing wages hurts business.
Cutting the pay of Chicago teachers (for example) would be very bad for countless businesses in various Chicago neighborhoods.
- Tone - Thursday, Feb 4, 16 @ 3:17 pm:
- Dey tekur jerbs! - Thursday, Feb 4, 16 @ 3:08 pm:
I’m sure it’s a pure accident that they don’t report how our job growth and wage growth compares, using the same data source.
Exactly. Only 140,000 jobs to go before we match the job level from 2000.
- cannon649 - Thursday, Feb 4, 16 @ 3:18 pm:
As previously mentioned these are corporate filings. One high net worth individual can have as many of these as they can afford.
Net it looks like slightly over 2% growth -
- 360 Degree TurnAround - Thursday, Feb 4, 16 @ 3:30 pm:
Tone and Dey tekur jerbs -
According to BLS, the most recent data points to 85,000 new employees in Illinois, that is a 1.5% increase from last year. That ranks Illinois 8th best in that time span.
- Shemp - Thursday, Feb 4, 16 @ 3:30 pm:
Were half the new businesses video gaming parlors? Seems to be the high growth sector around here.
- @MisterJayEm - Thursday, Feb 4, 16 @ 3:32 pm:
Before calling people “idiots”, one might want to master the use of less and fewer.
Or just don’t call people idiots.
– MrJM
- out of touch - Thursday, Feb 4, 16 @ 3:44 pm:
We’re boomin’ superstars!
- Tone - Thursday, Feb 4, 16 @ 3:51 pm:
Non farm wage jobs, what economists look at for job growth, is down 140,000 still from the year 2000. The employment numbers are not particularly useful. Lots of unemployed people “consulting” and other noise.
When you hear the monthly jobs report in the media it is referring to the non farm employment numbers. Illinois is doing terribly in job growth. One of the worst in the nation. That along with the 4th highest tax burden in the country is wonder why IL is losing population.
- Harry - Thursday, Feb 4, 16 @ 3:55 pm:
My gut reaction is that IL had a lot of people who lost their jobs in 2003 and 2007-8-9, who started their own little shops to try and keep going. That would tie IL’s bad record on unemployment to good numbers on new business starts.
But who really cares about the raw number of businesses, I want to know how many people they employ and how much they pay in compensation, how much they earn and how much they pay in taxes. Few things are less interesting than just a number of businesses that doesn’t distinguish ADM from an unemployed janitor who sets himself up as a handyman contractor.
- Illiana - Thursday, Feb 4, 16 @ 3:59 pm:
Ducky LaMoore,
Your first post on the definition of a business is incorrect. If you are self-employed then you are considered a business even if it is not an LLC or corporation.
BLS Definition of Business Establishment: The physical location of a certain economic activity—for example, a factory, mine, store, or office. A single establishment generally produces a single good or provides a single service. An enterprise (a private firm, government, or nonprofit organization) can consist of a single establishment or multiple establishments. All establishments in an enterprise may be classified in one industry (e.g., a chain), or they may be classified in different industries (e.g., a conglomerate).
http://www.bls.gov/bls/glossary.htm
- Commonsense in Illinois - Thursday, Feb 4, 16 @ 4:11 pm:
I would also want to look at size of firm to separate sole proprietors. Seeing continuous and sustained growth of the number of firms throughout the Great Recession just doesn’t make sense to me. I’m sure there’s a reason, but this chart just doesn’t account for it. I’m not saying Jason Keller is wrong or trying to pull a fast one, his integrity is unquestioned. I just would like to understand what I’m looking at better. Thanks for posting.
- Trolling Troll - Thursday, Feb 4, 16 @ 4:15 pm:
To the update
So the IPI is now saying that we need more union jobs or a higher minimum wage, or both?
- Under Influenced - Thursday, Feb 4, 16 @ 4:17 pm:
Did IPI just provide data to support raising the minimum wage??
- 360 Degree TurnAround - Thursday, Feb 4, 16 @ 4:18 pm:
Is the IPI saying we need to raise wages in Illinois?
- 360 Degree TurnAround - Thursday, Feb 4, 16 @ 4:19 pm:
Did the IPI admit the weekly average wage needs to be raised, perhaps by joining a union?
- Ahoy! - Thursday, Feb 4, 16 @ 4:25 pm:
Not all businesses are large job producers, remember a one person consulting business employers 1 person. Plus a business can have multiple entities on paper or a business can be someone who works a full time job and has a business on the site. One would have to look at businesses along with the jobs and wages like the IPI has done (and that pains me to say, they were right).
I’ll give the following example, a business employees 200 people, they decide to expand operations but want to expand mostly in another state so they grow their company but expand in a different state. They shift 100 jobs to the facility in a different state but keep a presence in Illinois and 100 jobs. 5 of those employees want to stay and open their own business each employing 5 people (including the business owner). Under this scenario Illinois has 5 new business but has lost 75 net jobs.
This is over simplified, but scenarios like this have been happening for a long time.
- Anonymous - Thursday, Feb 4, 16 @ 4:26 pm:
OMG - IPI just proved the bulls**t basis of Gov’s policies, i.e, businesses create jobs.
As M.Lucci states wages and jobs SLOW while businesses INCREASE.
What more proof is needed to blow the GOP job creators myth to tiny fragments.
Dems should be spreading PR statements all over with the IPI analysis, i.e., IPI demonstrates business not job creators!
The question is why #businesses high while job and wages low! Easy to answer. Look at Democrat programs which increase consumer spending (minimum wage, safety net programs, stable retiree incomes) vs GOP which result in corporate welfare (value transferred to the wealthy few, overseas or corporate treasury).
- illini97 - Thursday, Feb 4, 16 @ 4:26 pm:
So, business aren’t leaving, but we do need to increase wages?
That runs counter to what the Turnaround is all about, doesn’t it?
- Samuel Gompers - Thursday, Feb 4, 16 @ 4:28 pm:
This is great news. Just as I suspected. All the people I know who can’t find full time employment in the private sector at wages that can sustain a family are simply lazy. Good thing the union has the worker’s backs.
- sal-says - Thursday, Feb 4, 16 @ 4:58 pm:
== For growth over that recovery time period, Illinois’ ranked 4th for establishments, 32nd for jobs, and 45th for average weekly wage (AWW).==
And WHAT would be the rank for avg weekly wage with the IPI’s favorite govs kill the middle class-kill the Unions agenda?
- Hatepolitics - Thursday, Feb 4, 16 @ 6:19 pm:
Video poker businesses are on every corner now, but they are not a positive growth
- Yellow Dog Democrat - Thursday, Feb 4, 16 @ 7:01 pm:
This is the reaction I have come to expect from Republicans.
For years Republicans complained about Illinois’ high unemployment rate, until it started to go down consistently under Governor Quinn for more then a year, and then suddenly unemployment rate was a meaningless stat.
As The AFL-CIO points out, for more than a decade the GOP and the business lobbyists have been telling us that Illinois was a hostile environment due to Democratic leadership, and businesses were fleeing our state. Now apparently the number of businesses is no longer relevant.
It must be nice to be in the only business in the world where you get to wait to set your annual goals until the year is over and you have your results in hand. No wonder Rauner has been successful at everything he has ever done.
- illinois manufacturer - Thursday, Feb 4, 16 @ 8:30 pm:
Also Illinois or any state have nothing to do with the policies that drive manufacturing overseas. I have my stuff made mostly in another state but that has nothing to do with Illinois. Its another state or China. Threr just is not that much difference between states. Illinois is hurt now because we have crazy acting gov.
- Kenomac - Friday, Feb 12, 16 @ 8:48 am:
Several people post about both sides of the argument.. Yet no one talks about the real problems. 1. The government is out of control with spending. This falls on both political parties. Any person on here can go to accountability government sites and find listings of expenditures. Billions are wasted each year and then added on that the buracracy has created a system to funnel money. And example of that is the Stars fleet of vehicles. A car can need fixed. The part for it is 22 dollars at the local auto store. Employees are not allowed to do this. The car must be sent to a state garage that orders the part from a state vendor for 114 dollars. The states internet is the same. CMS runs the Internet. It is very slow. You can have a state job down state, like a prison, that has to allocate large amounts of money to pay CMS, which is another state entity for service. Why is one state agency paying another? This kind of thing is going on everywhere. Another example is in the prisons. The state contracted with a vendor for boots because the vendor offered the boots for ten percent less. Problem… The boots fall apart within one month. Back to the point, the government is misleading all of us. People do not want to remember that several years ago, the government was telling us that we are in financial trouble for months. They then passed a 30 billion dollar roads project. This is no fiscal discipline. How many of us would pave our driveway if we didn’t have the money to pay our electric bill. The answer is zero. Go to the site of us government revenue dot com and find Illinois. It will show the 2015 direct revenue for the state and local level. You will see that Illinois brought in over 115 billion dollars in direct revenue. Around 67 billion of that was at the state level, yet the general funds budget which the governor wants is around 34 billion. Nothing is said about the other 33 billion. You can go to the accountability sites and read the hundreds of pages of line item expenditures that include tens of thousands for attorney professionalism funds, or millions to supposedly restore churches in Chicago, or millions to revamp the computers in Springfield. The list goes on and on. Per this article, we can see that the governor wants to scare the people and tell us that the jobs are all leaving. Jobs left everywhere. They started leaving the day that NAFTA was signed many years ago. Illinois does have problems, but every state does. If the state wants to get back on track then the wasteful spending needs to be controlled, That is the entire problem.