Who woulda thunk it?
Friday, Jun 19, 2015 - Posted by Rich Miller
* Crain’s…
So much for the jobs-killer rep—when it comes to states that are growing new businesses, Illinois is among the top U.S. leaders.
The Land of Lincoln ranked No. 2 among states where businesses are being created the fastest, according to numbers released yesterday by the U.S. Bureau of Labor Statistics.
The number of business startups in Illinois jumped 4.7 percent in the fourth quarter compared with a year earlier. The only state beating Illinois was Massachusetts—home of Harvard University and the Massachusetts Institute of Technology—whose fourth-quarter number rose 5.6 percent.
Education seems to be a common thread among the top business-creating states, said Robert Atkinson, president of the Washington-based Information Technology & Innovation Foundation, a research group that promotes innovation. […]
The density of young firms and population diversity, including an area’s ability to attract immigrants, are among the factors that helped some metropolitan areas and states stand out, said Arnobio Morelix, a research analyst who studies startups at the Kauffman Foundation in Kansas City, Mo.
Illinois fits that bill, aided by Chicago’s status as one of the fastest-growing cities for technology jobs, with a rapidly-growing tech community in River North.
- Precinct Captain - Friday, Jun 19, 15 @ 12:46 pm:
Someone forward this to the Raunerbots at the Tribune editorial board.
- South of Sherman - Friday, Jun 19, 15 @ 12:47 pm:
The fourth quarter? So, last year? When Pat Quinn was still in office, the income tax rate was at 5%, and unions roamed the land freely, pillaging with impunity as part of their corrupt bargain with the one-party rule of Democrats?
Hmm.
- Mokenavince - Friday, Jun 19, 15 @ 12:48 pm:
That’s great news, I’m damn proud of my state.
- 3234 - Friday, Jun 19, 15 @ 12:49 pm:
I blame the liberal media /snark
- Joe cannon - Friday, Jun 19, 15 @ 12:51 pm:
So the mere election of biz-friendly Bruce Rauner sparked progress. Elections DO have consequences! /s
- sal-says - Friday, Jun 19, 15 @ 12:51 pm:
Can’t wait for the DCEO & Tribbie spin.
- Anonymous - Friday, Jun 19, 15 @ 12:56 pm:
I just heard Donald Trump take credit for this. No, not on radio or TV. The Yelping ID needs no electronic help
- Juice - Friday, Jun 19, 15 @ 12:58 pm:
Umm Sal, does this work? People are being forced to go through the treacherous task of starting their own businesses because they lack “the right to work” for other employers without aligning themselves with those corrupt union bosses, or something like that.
- Frenchie Mendoza - Friday, Jun 19, 15 @ 1:01 pm:
I posted this link in another thread, but I suspect this will mean little to Rauner.
Bad news is what raises money and something like this only weakens whatever “Madigan has made a complete mess of this state, I must turn it around” rhetoric Rauner uses wherever he shows his PowerPoint.
- Frenchie Mendoza - Friday, Jun 19, 15 @ 1:02 pm:
Besides, Rauner will spin this as being too Chicago-centric. It’s one more reason why downstate is being ripped off by the big, bad city.
- Northsider - Friday, Jun 19, 15 @ 1:03 pm:
South of Sherman @ 12:47: Be careful with gateway truths like those. Before realize it, you’ll be comparing the economies and policies of Minnesota and Wisconsin…
- Anonymous - Friday, Jun 19, 15 @ 1:05 pm:
All that growth in the fourth quarter took place within the last 7 weeks of the quarter because voters had by then had elected Rauner and business flooded in. Or something like that.
- Honeybear - Friday, Jun 19, 15 @ 1:05 pm:
And the truth shall set you free! Wow that so flies in the face of what Schultz was saying!
- The obvious - Friday, Jun 19, 15 @ 1:09 pm:
That’s great news. Hope we keep heading in the right direction. But like all statistics, it can be misleading. I remember when I was the head of a statewide organization, and we were the fastest growing state organization in the country. However other states, actually most states, were doing much better because they had much more going on in their state and a much better foundation. My state was starting from way back in the pack. There are other things to say, such as diversity of job sectors. But I’ll stop there and quote my favorite author, Dave Barry, who used to say “one point driven home is better than three left on base.”
- anon - Friday, Jun 19, 15 @ 1:17 pm:
What if……..what if……the numbers in the 4th quarter of 2013 were so dismal that a small increase in the number of start-ups amounted to 4.7%???
Hmmmm
- BW - Friday, Jun 19, 15 @ 1:23 pm:
Chicago pulls up the State in a lot of ways statistically, but they are only a piece of our great State. Love him or hate him, the consistent message delivered by Schultz speaks to a lot of what is felt on the ground downstate. We need jobs and investment in all communities, especially out here in flyover country where the local school district is the largest employer and the grain elevator is the tallest building.
- Juvenal - Friday, Jun 19, 15 @ 1:23 pm:
This has always been the real Achilles heel of the Rauner strategy.
Illinois saw some of the biggest drops in unemployment over the last year. Now, we are leading the nation in start-up companies. You know, the small businesses - real engines of the economy.
Another hole Rich - no offense - in the anecdotal criticisms about worker’s comp being some sort of crisis.
The overwhelming weight of the evidence does not support the arguments being made by Rauner.
But, more importantly, if folks feel like they are doing better, they stop looking for someone to blame.
- Grandson of Man - Friday, Jun 19, 15 @ 1:24 pm:
“Illinois fits that bill, aided by Chicago’s status as one of the fastest-growing cities for technology jobs, with a rapidly-growing tech community in River North.”
This is great news. Illinois metro areas’ unemployment rates have been dropping also, which is great.
We have problems in this state, big problems, but we have great people, values and history.
There were an estimated 2 million people yesterday at the Blackhawks parade and rally. That was fantastic, millions of people celebrating in our city and state.
- 3rd Party Needed - Friday, Jun 19, 15 @ 1:27 pm:
too bad the governor doesn’t read the paper…
- nixit71 - Friday, Jun 19, 15 @ 1:30 pm:
It’s always good to see indicators such as this trending upward, but with little context around it, how are we to gauge the true impact? What is the overall ranking?
- 47th Ward - Friday, Jun 19, 15 @ 1:31 pm:
Maybe if we get enough good news Governor Rauner will stop bad-mouthing Illinois at every opportunity.
Nah, probably not.
- nona - Friday, Jun 19, 15 @ 1:32 pm:
== The Land of Lincoln ranked No. 2 among states where businesses are being created the fastest, according to numbers released yesterday by the U.S. Bureau of Labor Statistics. ===
Once again, the facts contradict the GOP mantra about Illinois being a hellhole for business. Any bets about whether the GOP will adjust their message to take account of these facts?
- ToughGuy - Friday, Jun 19, 15 @ 1:32 pm:
Just the mere rumor of Rauner’s Turnaround Agenda created the robust job market. Very heavy snark
- Cook County Commoner - Friday, Jun 19, 15 @ 1:34 pm:
Does anyone know the types of businesses created and the pay scale and numbers of jobs they generated?
The Bureau of Labor Standards U-6 unemployment number of 11.9% for IL (total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers)still seems high.
Still, the start-up number is a good indicator that folks are still willing to take a chance on Illinois. And the pols should refrain from policy decisions which would snuff out this hopeful trend.
- nona - Friday, Jun 19, 15 @ 1:42 pm:
It’s worth noting that this nation-leading business growth occurred during the administration of Pat Quinn, whom candidate Rauner lambasted as the worst governor in the nation.
- Politix - Friday, Jun 19, 15 @ 1:47 pm:
So nice to read something good about IL for once.
- Liberty - Friday, Jun 19, 15 @ 1:48 pm:
I hear a Trump Rauner ticket is now in the works since he straightened Illinois out in record time.
- The Dude Abides - Friday, Jun 19, 15 @ 1:49 pm:
I had expected more Rauner supporters on here by now to make an effort to refute these numbers? We need more bad news instead of good news to encourage people to support the “turnaround” agenda.
- Politix - Friday, Jun 19, 15 @ 1:54 pm:
BW @1:23: Did you read the article?
“Places with high startup activities tend to be attractive for reasons beyond just the economy,” Morelix said. “They are places where people want to live and people want to move.”
I may be in the minority here but it sure has gotten tiresome listening to downstaters blame Chicago for being Chicago.
- illinifan - Friday, Jun 19, 15 @ 2:01 pm:
I see a TV ad in our future from the Turnaround Illinois group sharing this good news with the citizens of Illinois….they are succeeding.
- anon - Friday, Jun 19, 15 @ 2:05 pm:
Just for arguments sake, what if there were 99 start-ups in the 4th quarter of ‘13 in IL and there were 105 in 2014. That is roughly a 4.7-4.8% increase.
What if in state X, there were 500 start-ups in the 4th quarter 2013 and 520 in 2014. That % is 4.
Which state is doing better????
- sal-says - Friday, Jun 19, 15 @ 2:17 pm:
== Juice - Friday, Jun 19, 15 @ 12:58 pm: ==
Keep watching, someone may lift your quote.
==- 3rd Party Needed - Friday, Jun 19, 15 @ 1:27 pm:
too bad the governor doesn’t read the paper… ==
Would it really matter to him?
== And the pols should refrain from policy decisions which would snuff out this hopeful trend. ==
And constantly bashing labor force & IL, governor?
- Ro from So Flo - Friday, Jun 19, 15 @ 2:18 pm:
Here’s another sign of just how bad the Illinois economy is, as posted by the Tribune:
“Illinois’ CEOs got bigger raises than their peers last year”
http://www.chicagotribune.com/business/breaking/ct-2014-executive-compensation-0621-biz-20150619-story.html
- Six Degrees of Separation - Friday, Jun 19, 15 @ 2:42 pm:
And then there’s this…relating directly to hi-tech employment and the difficulty of attracting workers to our part of the world.
http://www.voanews.com/content/study-show-chicago-immigration-drops-impacting-tech-sector/2826324.html
- Six Degrees of Separation - Friday, Jun 19, 15 @ 2:45 pm:
it sure has gotten tiresome listening to downstaters blame Chicago for being Chicago.
Don’t worry, Politix…at the rate downstate IL is losing population, you will hear less and less of this as they die off and their kids move to Chicago, the suburbs or the sun belt.
- Nick Danger - Friday, Jun 19, 15 @ 2:59 pm:
Dang, now that’s what you call a fast turnaround.
- walker - Friday, Jun 19, 15 @ 3:11 pm:
Our problem has not been start-ups. There are many assets available in Illinois to create opportunities.
It’s been retention of mature businesses, when ongoing costs related to size, become more important.
- anon - Friday, Jun 19, 15 @ 3:18 pm:
Or Six Degrees, instead of dying off, they just move to Florida and take all their assets with them.
When Rahm and the boys move Chicago to the edge of the cliff, what then?
- the Other Anonymous - Friday, Jun 19, 15 @ 3:31 pm:
To all those commenters trying to make the case that Illinois did so well in 4Q 2014 because new business startups were abysmal in earlier years:
Not true. Actually, Illinois did very well in new business startups during the Quinn years.
http://www.economicmodeling.com/2014/01/29/the-states-leading-the-way-in-net-new-business-establishments-since-the-recession/
- Juvenal - Friday, Jun 19, 15 @ 3:37 pm:
Dear Team Rauner:
Declare victory, pass a sound budget, and move on.
Scratch that.
Dear Ken Griffin:
Tell the governor it is time to cut his losses, declare victory and move on. You’re not gonna keep burning money just so he can save face, are you?
- Illinoisvoter - Friday, Jun 19, 15 @ 3:38 pm:
Maybe the General Assembly or the Governor’s office could follow up on this and set up an
Illinois Health Exchange since access to affordable health insurance makes striking out
on your own so much easier. Hate to see the
next generation go through the battles my
wife and I survived just to work and there is no better time than before the Supreme Court rules.
- Judgment Day - Friday, Jun 19, 15 @ 3:44 pm:
You want to understand part of what is happening:
http://www.chicagobusiness.com/article/20140222/BLOGS11/140229927/chicago-wins-70-million-grant-for-ui-labs
The really hard part is just starting. That is in getting the startups to grow and expand. That’s a lot harder.
We’ll see how we do. But it’s been a very promising start.
- Wordslinger - Friday, Jun 19, 15 @ 4:14 pm:
I don’t believe there is such a thing as the “Illinois economy,” certainly not one which is terribly influenced one way or the other by state government-mandated marginal differences in the cost of doing business compared to other states.
So no, I don’t think workers comp is an “economic development tool,” unless your economic model is Mississippi. Or Nuevo Leon. It’s a part of the civil justice system.
Within Illinois, however, tnere are striking regional differences in opportunity.
Chicago metro is a diverse, world economic juggernaut. Winners and losers all the time, but always opportunity.
Rural Illinois is different. You can right-to-work yourself silly, but you ain’t going to compete with Mexico, Vietnam, and Pakistan on low-skill manufacturing.
Skilled manufacturing, like you see in precision steel or medical devices, is something else.
When it comes to farming, the federal government, under the sway of the chemical producers and food processors, have rigged the game for Big Corn and Big Beans. If you’re an Illinois farmer, you’d have to be nuts not to go for the relative security of corn and beans.
Corn and beans don’t require much labor, just a whole lot of capital. And they don’t provide much opportunity to keep you down on the farm. When you talk about people leaving the state, that’s them.
But you can grow anything in Illinois, and the day of reckoning is coming for the farmers of the central valleys in California, who are literally drinking the place dry.
I havent noticed a lack of rain lately in my neighborhood. Bust Big Corn and Big Beans and you can open Illinois farmland to entreprenuers willing to take a risk on produce.