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* From a press release…
The administration of Governor Pat Quinn, the Illinois Workers’ Compensation Commission and the Department of Insurance (DOI) announced that a national study has provided additional evidence that Illinois’ historic workers’ compensation reforms are delivering major savings for businesses across the state. The biennial report by the Oregon Department of Consumer and Business Services shows Illinois recorded the sharpest reductions in workers’ compensation insurance premiums in the nation over the last two years. […]
The Oregon study - http://www.oregon.gov/DCBS/docs/news_releases/2014/workers-comp-rate-study-14.pdf - ranks all 50 states and the District of Columbia by the amount insurance premiums rose or dropped in the last two years. It highlights that Illinois had the steepest reduction in workers’ compensation rates when compared to the median, with an estimated rate drop of 24 percentage points between 2012 and 2014 (see chart below), compared to the national median reduction of only 2 percent.
The report shows Illinois employers workers’ compensation premiums dropped from $2.83 per $100 of payroll in 2012 to $2.35 in 2014. This means hundreds of millions of dollars in savings for Illinois businesses.
All good. No doubt about it. The trend is positive. But look at the actual rankings by clicking here and you’ll see Illinois has the 7th highest premiums in the nation. That’s down from 4th highest in 2012, but they’re still way too high.
* Meanwhile, from another press release…
The Illinois unemployment rate fell in September for the seventh consecutive month to reach 6.6 percent while employers created +19,300 jobs, according to preliminary data released today by the Bureau of Labor Statistics and the Illinois Department of Employment Security. The data is seasonally adjusted.
The drop from 9.1 percent one year ago marks, for the second consecutive month, the largest year-over-year decline since 1984. The last time the rate was lower than 6.6 percent was in June 2008 when it was 6.3 percent. Also, there are +69,000 more jobs than one year ago.
“Unemployment rates continue to fall because private-sector employers are averaging more than 5,400 new jobs each month since the Illinois economy began to improve,” IDES Director Jay Rowell said. “Meanwhile, help wanted ads for full-time work continue to grow and indicate employers expect their need for more workers to remain strong.”
September job growth was led by Trade, Transportation and Utilities (+6,500), Professional and Business Services (+6,000), and Other Services (+5,500). Manufacturing (-2,800), and Leisure and Hospitality payrolls ( 1,100) declined.
Employers added +300,700 private sector jobs since job creation returned to Illinois in February 2010. Leading sectors are Professional and Business Services (+126,800); Education and Health Services (+60,900); Trade, Transportation and Utilities (+56,100); and Leisure and Hospitality (+36,200). Government remains the job loss leader, shedding -21,500 positions during the same period.
The unemployment rate also is in line with other economic indicators. First-time jobless claims have been trending lower for the past four years and in September the number of monthly claims was at its lowest level since 2000. Numbers from the independent Conference Board’s Help Wanted OnLine Index show that Illinois employers in September advertised for nearly 212,000 jobs and 85 percent sought full-time work.
Those lost manufacturing jobs are not a good thing, and it’s been trending that way for months.
*** UPDATE 1 *** From Bruce Rauner…
“Any monthly job growth is welcome news, but under Pat Quinn, Illinois’ unemployment rate continues to trail most of our neighboring states and far too many people remain out of work. Now, we’ve learned that Pat Quinn wants to make things even tougher on hard-working Illinoisans by enacting another massive tax hike next month.
“Since Pat Quinn became governor Illinois has lost more than 48,000 manufacturing jobs, including more than 2,500 last month alone. The people of Illinois have suffered enough under Pat Quinn and it’s time for him to go. I have a plan to lower taxes and create more jobs so our economy is booming again. I’m eager to get to work for you.”
*** UPDATE 2 *** From Brooke Anderson of the Quinn campaign…
We’re not surprised that Bruce Rauner continues to root for the Illinois economy to fail. The truth is, Illinois’ improving economy doesn’t fit the false narrative he’s made the foundation of his campaign.
Jobs are up and unemployment is down. Unemployment is now at its lowest point in more than 6 years… more people are working today than when Governor Quinn took office.
In the last 2 months alone, Illinois has created 40,000 jobs. In the last 6 months, Illinois has seen the steepest decline in unemployment of any state in the nation.
Bruce Rauner just can’t handle the truth. Having a Governor who makes the tough decisions is leading our economy in the right direction.
posted by Rich Miller
Friday, Oct 17, 14 @ 2:44 pm
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Anyone have stats on Illinois wages increasing, decreasing or status quo lately?
Comment by Formerly Known As... Friday, Oct 17, 14 @ 2:52 pm
The workers comp reform was a step in the right direction but falls way short of fixing the problem. This along withQuinn’s administration bungling gambling legislation and the video poker/fracking fiascos have cost the state thousands of jobs and millions in tax revenue. Cant stand rauner but Quinn is a big part of the problem with Illinois economy
Comment by fed up Friday, Oct 17, 14 @ 2:53 pm
” … but they’re still way too high.”
Is there breakout of workers’ comp costs showing the various categories - medical costs, wage replacement, legal costs, etc.? Based upon medical costs in Chicagoland, Illinois having high premiums doesn’t seem that counter-intuitive. But if the costs can be reduced without depriving people of their just compensation, it should be done.
Comment by Anyone Remember Friday, Oct 17, 14 @ 2:54 pm
Just wondering, but the biggest growth was in TTU, does this have anything to do with the added push by Quinn on construction projects you talked about a few days ago (and that the Rauner camp lamented)? or is this all private sector growth?
Comment by Anon Friday, Oct 17, 14 @ 2:55 pm
A slow ascent.
Not a great success.
Not down the tubes.
In the middle between the usual partisan scenarios.
Comment by walker Friday, Oct 17, 14 @ 2:59 pm
- the steepest reduction in workers’ compensation rates when compared to the median, with an estimated rate drop of 24 percentage points between 2012 and 2014 -
Clearly Rauner’s retirement has been great for the economy. I guess his partners aren’t as good at shipping jobs overseas.
Comment by Anonymous Friday, Oct 17, 14 @ 3:03 pm
Manufacturing jobs have generally trended down for 50 years (or more)
Comment by steve schnorf Friday, Oct 17, 14 @ 3:07 pm
I assume (somebody correct me if I’m wrong) that the professional and business services category includes technology-related jobs. If so, that’s a good sign. There does seem to be a lot more going on lately in that sector in Chicago.
Comment by OldSmoky2 Friday, Oct 17, 14 @ 3:08 pm
“Government remains the job loss leader” Must be all those patronage people leaving before the next election. (/snark) I’m curious to see how the Rauner camp is going to spin that.
Comment by Skeptic Friday, Oct 17, 14 @ 3:08 pm
Previous commenters hint at what every reporter, every business lobby, and the GOP ignore.
Illinois has higher workers comp costs because we have some of the best wages in the nation.
Raising the minimum wage, for example, naturally increases work comp insurance costs.
But what work comp does not pay just gets shifted to welfare, Medicaid and employer health.
True fiscal conservatives should be in favor of a robust benefit system that prevents cost-shifting. That creates market incentives for employers to make workplaces safer.
That is what caterpillar did, and it worked.
Comment by Yellow Dog Democrat Friday, Oct 17, 14 @ 3:10 pm
The big problem with workers comp: we don’t regulate the insurance companies that provide that product. So self-insured plans see their costs go down quite a bit (the biggest companies) from the reforms, since those cost savings stay with the company. But for 99% of businesses that buy a insurance product for workers comp, the savings stay with the insurance company.
Next year, the GA should tackle the regulation of workers comp insurance companies to reduce the premiums.
Comment by Dan Johnson Friday, Oct 17, 14 @ 3:11 pm
We’re still digging out of the hole that the financial community dug for us and the nation while manufacturers continued moving jobs overseas in search of cheap labor.
Quinn didn’t dig the hole nor did he support the policies of the guys with the shovels
Comment by truthteller Friday, Oct 17, 14 @ 3:12 pm
Kind of like Obamacare requires health insurance companies to pay out 85% of their premiums collected (leaving 15% for profit and overhead and promotion). We should have a state law like that.
Comment by Dan Johnson Friday, Oct 17, 14 @ 3:13 pm
There are 2 issues with workers’ comp premiums in IL:
1) the fox guards the hen house here, unlike many other states. Insurance companies are unregulated; they can charge IL businesses whatever they want. So, when the GA cuts WC benefits and medical reimbursements for docs and denies formerly compensable injuries it gives insurers the opportunity to provide some savings to employers, but they also get an opportunity to increase their profit margins, which they have done since 2012. Further, there were numerous WC benefit cuts in the 2012 law that the industry ‘couldn’t quantify’, so, again, the savings weren’t passed on.
2) IL has higher than average WC insurance rates because we are a higher wage state, one of the highest, in fact. If we really wanted to look like IN (God forbid), MO, IA or other lower wage states around us someone introduce and pass a paycut for everybody.
Comment by Hyperbolic Chamber Friday, Oct 17, 14 @ 3:14 pm
My family business is paying $5.20 per $100 of payroll and our IDES payment has more than doubled this year.. Work comp has come down slightly but still has a long ways to go.
Comment by proudstatetrooper Friday, Oct 17, 14 @ 3:16 pm
Now the Department doesn’t say how many people it considers to be unemployed? Unreal. I believe Quinn’s unemployment numbers about as much as I believe Rauner’s retelling of state education spending.
Comment by Dirty Red Friday, Oct 17, 14 @ 3:17 pm
Also good news is that the labor force actually increased for the first time since February, along with the drop in the unemployment rate.
Comment by Formerly Known As... Friday, Oct 17, 14 @ 3:23 pm
Any reduction in worker’s comp premiums has been like a drop in the ocean. It is one of the primary reasons businesses stay away from Illinois, IMO
Comment by Peoria Guy Friday, Oct 17, 14 @ 3:28 pm
Though our labor force participation rate of 64.5% is the worst it has been since March of 1978.
Comment by Formerly Known As... Friday, Oct 17, 14 @ 3:28 pm
The Governor’s Press release doesn’t jibe with a Crain’s article on WC rates not going down. They’re definitely up in the construction industry.
Comment by phocion Friday, Oct 17, 14 @ 3:50 pm
- Peoria Guy -
Any reduction in worker’s comp premiums has been like a drop in the ocean.
As a construction industry business owner for over 20 years, this is SOOOO True…WC needs to be revamped in a HUGEEE way…
The touted construction jobs, roadway work that Quinn keeps bragging about is temporary labor, but is counted as full time employment.
Most road-workers turn into snow plow drivers, collecting unemployment and working for cash in the winter, until the roadwork starts up again.
That really helps our economy huh??
Keep in mind,the Asphalt factories close for the winter and don’t open until spring and hard frost in the Chicago area keeps road construction halted, other than emergency or “pot hole patching”, as can be done between cold spells.
Keep touting the B.S. Quinn…
Comment by THEGUN Friday, Oct 17, 14 @ 3:51 pm
Peoria Guy
Illinois is above average in wages and medical costs. How do you recommend we reduce the premiums without reducing those items?
Comment by Anyone Remember Friday, Oct 17, 14 @ 3:52 pm
Bruce is concerned. Maybe he could hire some more dudes to scream obscenities at the next debate.
Comment by Wordslinger Friday, Oct 17, 14 @ 3:53 pm
Ah, so Rauner played the “The-glass-is-getting-fuller-but-isn’t-as-full-as-it-should-be-so-I’ll-do-*something*-I-just-won’t-tell-you-what-but-IT’LL-BE-BIG-I promise!” card. Knock me over with a feather.
Comment by Skeptic Friday, Oct 17, 14 @ 3:56 pm
- Anyone Remember -
How do you recommend we reduce the premiums without reducing those items?
Its called “Tort Reform”
Comment by THEGUN Friday, Oct 17, 14 @ 3:58 pm
FKA, labor participation has nothing to do with the actions of silly “job creating” politicians, but evereything to do the Baby Boomers and continued rises in productivity.
Job displacement due to increased productivity has been going on for some time and will continue in virtually every field. What to do about surplus labor is a serious problem that is far beyond the scope of partisan talking points.
Comment by Wordslinger Friday, Oct 17, 14 @ 4:01 pm
“Workers comp reform hasn’t helped the construction industry” Crain’s 10/13/14
http://www.chicagobusiness.com/article/20141011/ISSUE01/310119986/workers-comp-reform-hasnt-helped-the-construction-industry
Comment by COPN Friday, Oct 17, 14 @ 4:45 pm
THEGUN
Specific examples, please.
Comment by Anyone Remember Friday, Oct 17, 14 @ 4:45 pm
===”We’re not surprised that Bruce Rauner continues to root for the Illinois economy to fail.”===
I did not see where Rauner said this in his press release. Someone should pass Brooke a note!
Comment by Louis G Atsaves Friday, Oct 17, 14 @ 4:49 pm