Although Illinois’ job and wage figures have increased over the last several years, the growth may best be classified as disappointing, especially when compared to the job figures of other states across the nation. From a national perspective, Illinois has been slower than most in its recovery from the Great Recession. […]
Contributing to this slow recovery is the fact that many of the jobs that have been added in Illinois have been comparatively lower paying jobs. To understand this a little better, a closer look at the different subsectors of jobs in Illinois is necessary.
Over the last eight years (comparing average employment pre-recession totals of 2008 with 2016), the biggest improvement in the number of jobs in Illinois has been in “Education and Health Services” (up 14.0%). However, as shown below, this subsector is one of the lowest paying subsectors in terms of weekly earnings, with an average weekly earnings value of $809. Illinois’ largest employer of jobs is the “Trade, Transportation, and Utilities” subsector, employing over 1.2 million people. But, this subsector also has one of the lowest average weekly earnings totals in the State (2016 average weekly earnings value of $807).
Equally troublesome is the fact that those subsectors with the highest weekly earnings were the subsectors that have lost the most jobs over the last eight years. For example, the subsector with the highest weekly earnings is “Construction”, paying, on average, $1,334 per week. However, construction jobs are down 16.8% over the last eight years in Illinois. The next highest paying subsectors are “Financial Activities” ($1,330 per week) and “Information” ($1,130 per week), but employment in these categories are down 5.5% and 14.7%, respectively, since 2008. […]
The highest paying subsector is the “Construction” subsector. Although this category of jobs only grew slightly in 2016 (+2,000 jobs or 0.9%), employment in this subsector has grown 7.8% over the past five years (Dec. 2016 vs Dec. 2011). But, while this rate of growth for a high-paying sector may, at first, appear encouraging, Illinois’ gain in construction jobs, compared to other states, has been disappointing (ranked 38th). Even more disappointing is comparing the number of construction jobs in Illinois today compared to 15 years ago. Construction jobs are down 25.5% in Illinois over this time period, ranking Illinois 50th in this rate of change. […]
Another area of employment that continues to struggle in Illinois is manufacturing. Comparing December figures, employment in manufacturing fell 1.9% between 2015 and 2016. This rate of change ranked Illinois 39th in the nation. This rate of decline in manufacturing jobs in Illinois is similar to its five-year rate of change of -1.8%. This ranks Illinois 40th in the nation for percentage change in manufacturing jobs for this time period. This is especially of concern when Illinois’ biggest competitors have seen their comparable job totals in this subsector improve at a notably higher rate than Illinois during this time frame (Indiana ranked 10th with a growth rate of +10.3%; Michigan ranked 3rd with growth rate of +14.8%; Ohio ranked 16th with growth rate of +6.4%).
- Liberty - Friday, Feb 3, 17 @ 10:26 am:
So a second year of a massive tax break hasnt improved the state economy…
- Lew - Friday, Feb 3, 17 @ 10:28 am:
What did you do with the money?
- RNUG - Friday, Feb 3, 17 @ 10:33 am:
Someday this will be a Harvard case study showing that the tax rate is less important to business than a stable government environment.
- Lucky Pierre - Friday, Feb 3, 17 @ 10:46 am:
Of course the lower tax rate does not matter because any long term investor knows that given our desperate finances taxes are going back up.
Why would a company invest in new manufacturing when every state bordering us is now right to work and has a far better tax, regulatory legal and workers comp environment.
The Speaker’s policies have failed middle class private sector workers. He is only concerned with those jobs associated with government directly or indirectly.
- Tone - Friday, Feb 3, 17 @ 10:50 am:
There is no massive tax break. And everyone knows that taxes will be raised in the next year.
- wordslinger - Friday, Feb 3, 17 @ 10:53 am:
Any sighting of a state capital improvements plan? I’m guessing there’s a wee bit of “deferred maintenance” that could stimulate the construction trades.
Infrastructure improvements are actually a primary objective for organizing as a state in the first place.
Manufacturing gains are being driven by domestic auto sales. Michigan, Ohio and Indiana are heavy into the whole parts, supply and manufacturing chain, particularly among the unionized Detroit Big 3.
2016 was another record setting year for auto sales, breaking the previous record set in 2015.
https://www.wsj.com/articles/auto-industry-poised-to-set-annual-sales-record-1483541246
- JS Mill - Friday, Feb 3, 17 @ 11:02 am:
=Of course the lower tax rate does not matter because any long term investor knows that given our desperate finances taxes are going back up.
Why would a company invest in new manufacturing when every state bordering us is now right to work and has a far better tax, regulatory legal and workers comp environment.=
LP, with respect, because I do believe you make some very good comments here I do not think the data supports your comments.
Many of those jobs in Indiana, Missouri, Wisconsin, and Iowa have been and continue to be lower paying jobs. Yes, they are jobs which can be better than nothing but many of them are positions that do not offer the prospect of growth or a career.
There is significant research that demonstrates that taxation and economic growth do not, in fact, go hand in hand. The best comparison may be the economies of Texas and California. Two very different states that also enjoy good economic and jobs growth.
Also, Indiana and Wisconsin are not low tax states. They both have higher personal income tax rates and Indiana also has a county income tax along with user taxes/fees and Wisconsin has a relatively high property tax (at least in the opinion of Wisconsin residents) albeit lower than Illinois.
- Anonymous - Friday, Feb 3, 17 @ 11:03 am:
RNUG nailed it. …..”the fault, Dear Bruce, is not in our stars, but in ourselves”
- TinyDancer(FKASue) - Friday, Feb 3, 17 @ 11:08 am:
=Contributing to this slow recovery is the fact that many of the jobs that have been added in Illinois have been comparatively lower paying jobs. =
Apparently, they’re not low-paying enough for the governor.
- Sue - Friday, Feb 3, 17 @ 11:11 am:
Better question- why would you relocate or expand a manufacturing business to Illinois when it is literally surrounded by right to work states? If you have the choice why wouldn’t you go to a State where unions are a non- factor
- TinyDancer(FKASue) - Friday, Feb 3, 17 @ 11:14 am:
We don’t need a Harvard study - it’s settled science.
Economics 101 - the velocity of money:
We live in a consumer-driven economy. Seventy percent of GDP is consumer spending. So, when the majority of consumers don’t have disposable income - whether due to low wages, high debt, or lack of a fair GRADUATED state income tax - they can’t spend.
- Lucky Pierre - Friday, Feb 3, 17 @ 11:24 am:
In the Governor’s hour long tape recorded interview with the Tribune editorial board where he was challenged fairly aggressively by the spectrum of political views there,he had an interesting comment about our competitiveness.
He said Illinois within an hour was doing ok, benefiting from proximity to one of the great cities in this country and a fantastic workforce and transportation network. This area of the state can afford our business environment that is more hostile than our neighboring states.
It is the areas outside of Chicago and it’s suburbs that looked like a the great sea of red or Trump Country that are suffering.
Outside of universities and state government they are not able to compete with Indiana, Kentucky etc.
That is why the Governor would like these areas to choose for themselves how they can compete better without mandates from Springfield that are crushing them.
As Trump would say “what do you have to lose” it doesn’t look like it could get much worse
- wordslinger - Friday, Feb 3, 17 @ 12:05 pm:
–Better question- why would you relocate or expand a manufacturing business to Illinois when it is literally surrounded by right to work states? If you have the choice why wouldn’t you go to a State where unions are a non- factor–
You could ask the CEO of any of the 12,507 manufacturing firms in Illinois. There are 7,163 in Indiana, 7,865 in Wisconsin.
Those Big 3 auto companies driving manufacturing growth in Michigan, Ohio and Indiana are plenty unionized.
In addition, Illinois was third in the nation in 2014 and 2015 in new site locations that employed more than 20 people.
http://www.nam.org/Data-and-Reports/State-Manufacturing-Data/
http://siteselection.com/issues/2016/mar/cover.cfm
- jon r - Friday, Feb 3, 17 @ 12:05 pm:
Lucky Pierre
can you provide a list of “crushing mandates” from Springfield so i can understand your point of view?
- sulla - Friday, Feb 3, 17 @ 12:15 pm:
“You could ask the CEO of any of the 12,507 manufacturing firms in Illinois. There are 7,163 in Indiana, 7,865 in Wisconsin.
Those Big 3 auto companies driving manufacturing growth in Michigan, Ohio and Indiana are plenty unionized.
In addition, Illinois was third in the nation in 2014 and 2015 in new site locations that employed more than 20 people. ”
So everything is fine in Illinois then?
Awesome. Cool.
- LeadingInDecatur - Friday, Feb 3, 17 @ 12:48 pm:
“What do you have to lose?”
this is not a point that supports your argument, but refutes it.
We stand to lose billions on “the Wall” and everyday it seems that we lose stability and transparency as Trump bullies the media and Universities in California where the students do not welcome his mouthpieces.
We have already lost much in the “Rauner Experiment”, and it’s obvious it CAN get much worse. Universities CAN be closed, the least among us CAN continue to suffer. Our sons and daughters CAN leave and not return.
Rauner has proven in the last two years there is a lot to lose and it can always get worse.
- wordslinger - Friday, Feb 3, 17 @ 1:06 pm:
–So everything is fine in Illinois then?
Awesome. Cool.–
Did I write that, Strawman-maker?
Didn’t you write something earlier about waiting before posting something stupid?
For starters, paying billions in overdue bills to Illinois vendors, a capital plan that stimulates the construction sector and adequately funding higher ed would be real things the state could do for the economy.
- Honeybear - Friday, Feb 3, 17 @ 2:18 pm:
LP- so in 2 months when national RTW is in place, what will our excuse be then? What will draw businesses then? Maybe the same things that we already have. RTW everywhere will neutralize this insanity.
- sulla - Friday, Feb 3, 17 @ 2:27 pm:
Wordslinger
So wait, are you seriously trying to say that your comment was not intended to paint the picture that Illinois is doing better than the COGFA stats indicate?
Because I can’t fathom what else you intended to convey by stating those figures.
- wordslinger - Friday, Feb 3, 17 @ 2:33 pm:
–So wait, are you seriously trying to say that your comment was not intended to paint the picture that Illinois is doing better than the COGFA stats indicate?
Because I can’t fathom what else you intended to convey by stating those figures.–
Read harder. It was a direct response to Sue’s comments about right-to-work.
The clue was that I posted her right-to-work comment, and then I responded to it.