Our sorry state
Thursday, Feb 9, 2017 - Posted by Rich Miller
* Illinois Policy Institute, using US Bureau of Labor Statistics numbers…
The Land of Lincoln lost 11,000 manufacturing jobs in 2016, easily the worst in the region.
Over the past four years, Illinois has lost 18,000 manufacturing jobs. Iowa is the only other state to lose manufacturing jobs over this time period.
So, the pace has quickened. Not good at all.
* Same group, same numbers source…
Union membership in Illinois is declining. In 2016 alone, union membership fell by 35,000 in Illinois, the worst loss in the region.
States like Missouri and Indiana, on the other hand, saw substantial growth in union membership according to an annual Bureau of Labor Statistics report on union membership.
Chart…
* And it’s gonna get worse without a real budget. From S&P Global Ratings…
We believe Illinois’ distressed fiscal condition and dysfunctional budget politics now threaten to erode the state’s long-term economic growth prospects.
- DuPage - Thursday, Feb 9, 17 @ 11:26 am:
Rauner: Decline in union membership? I’m winning!
- jim - Thursday, Feb 9, 17 @ 11:27 am:
just a thought, but maybe one way to increase union membership would be to make illinois more attractive to private-sector job creators with unionized work forces. like Cat, Deere etc.
- Deft Wing - Thursday, Feb 9, 17 @ 11:29 am:
What, no “Institute” today? /s
To the post, the lack of governing is accelerating Illinois’ decline, there’s no doubting that. The problem as I see it is that both Madigan and Rauner think each is “winning” (or, winnin’) and can politically capitalize on having no budget up to and through the next election. One will be right about that but the damage to the state, the acceleratingly bad damage, is the unknown. Does anyone really want the job of cleaning that mess up?
- A Jack - Thursday, Feb 9, 17 @ 11:34 am:
Interesting that a RTW state like Indiana had an increase in union membership. Perhaps those workers are getting fed up with the lousy wages RTW created.
- Norseman - Thursday, Feb 9, 17 @ 11:44 am:
=== We believe Illinois’ distressed fiscal condition and dysfunctional budget politics now threaten to erode the state’s long-term economic growth prospects. ===
Threatens or has eroded …? One can’t help but think that the reputation of the state has harmed its economic standing. We used to see our governors focused on touting our state. Of late, the narrative is how the state is in poor shape.
- Anonymous - Thursday, Feb 9, 17 @ 11:49 am:
Cause? Commodity markets punishing CAT and Deere and the related suppliers and lack of development downstate.
- Texas Red - Thursday, Feb 9, 17 @ 11:52 am:
Uncertainty kills the business cycle, with no budget, a pension crisis and an $11 billion unpaid bill backlog we’ve got uncertainty in spades.
- Arock - Thursday, Feb 9, 17 @ 11:54 am:
Illinois went into the recession first and came out last under Democratic leadership. It failed under Blagojevich and failed under Quinn. Illinois has been losing union manufacturing jobs for a long time not just the last two years, as well as population.
- VanillaMan - Thursday, Feb 9, 17 @ 12:01 pm:
If we only had a governor, and not a whiny victim.
- So tired of political hacks - Thursday, Feb 9, 17 @ 12:02 pm:
=Arock=
So the republican solution is to burn it down and make it 10x worse, not only for Unions but higher education, social services, small business don’t forget we went from 3.5 to 12 billion in Dept under Rauner rules.
- City Zen - Thursday, Feb 9, 17 @ 12:04 pm:
==Perhaps those workers are getting fed up with the lousy wages RTW created.==
The Subaru plant in Lafayette, IN pays its auto workers the same hourly rate as UAW workers under Ford and GM.
- Wilson - Thursday, Feb 9, 17 @ 12:07 pm:
Just wait until the “savings” from the Exelon bailout start to hit, then the manufacturing jobs will come back!
- Juice - Thursday, Feb 9, 17 @ 12:08 pm:
Not that I would expect SEIU to necessarily put the information out there, but it would be interesting to see how much of the decline is Harris v Quinn related. (That may have had an even larger impact than recent manufacturing job losses)
- Annonin' - Thursday, Feb 9, 17 @ 12:29 pm:
Is it OK to mention to the IPI stooges that IL has more manufacturin’ jobs than the border states combined and their pals at CAT laid off 10K to recover from the bonehead decision to overpay for a minin’ company when demand was droppin’?
- NoGifts - Thursday, Feb 9, 17 @ 12:40 pm:
My takeaway? States where they’re pressuring unions using right to work laws saw more people joining unions because they don’t want to risk losing the union.
- Anonymous - Thursday, Feb 9, 17 @ 12:47 pm:
- jim - Thursday, Feb 9, 17 @ 11:27 am:
just a thought, but maybe one way to increase union membership would be to make illinois more attractive to private-sector job creators with unionized work forces. like Cat, Deere etc
Right, or we can continue down our current path of a hollowed out downstate. Madigan seems to prefer our current path
- Augie - Thursday, Feb 9, 17 @ 12:52 pm:
= City Zen=
Thats good to hear we need more companies to do the same. Always said good union wages lifts a lot of boats. I wonder what the wages would be if there was no union plant to compete with for workers.
- wordslinger - Thursday, Feb 9, 17 @ 12:54 pm:
If we’re going to give more than lip service to the future of manufacturing in Illinois, we better get serious about our public universities and community colleges to prepare our students for those jobs.
The days when a factory worker was someone with a HS diploma pulling a lever are just about over in the United States. Those jobs are in Mexico, Asia and, increasingly, Africa. You can’t compete on wages with them.
The factory jobs of the future in the United States will be for electrical, mechanical and computer engineers, pulling down good money making high-margin products, not tee-shirts and plastic junk.
https://www.wsj.com/articles/as-skill-requirements-increase-more-manufacturing-jobs-go-unfilled-1472733676
- RNUG - Thursday, Feb 9, 17 @ 1:11 pm:
== Illinois went into the recession first and came out last under Democratic leadership. ==
Regardless of party, Illinois has ALWAYS lagged the national economic recovery by anywhere from 6 months to 2 years.
On the other side, Illinois has generally lagged going into a recession also. Might have been different this time because some of the manufacturers, like Deere and Cat, are now more affected by international trends (where the recession actually started earlier) and greater use of just-in-time processes.
- Anonymous - Thursday, Feb 9, 17 @ 1:17 pm:
May still get worse even after a budget is passed. Higher taxes driving business out of state!
- 39th Ward - Thursday, Feb 9, 17 @ 1:35 pm:
- Texas Red - Thursday, Feb 9, 17 @ 11:52 am:
Totally correct. Blue collar job creation requires a lot more capital and a longer term commitment than white collar job creation. Uncertainty is the enemy of future blue collar jobs.
- 61571 - Thursday, Feb 9, 17 @ 1:59 pm:
Luckily we have trump and the repubs to create jobs to fill the void. Maybe some new buggywhip and candle factories.
- DuPage - Thursday, Feb 9, 17 @ 2:11 pm:
@Annonin’ 12:29=== IL has more manufacturin’ jobs than the border states combined===
If Illinois has more jobs to start with, then it could lose a larger number of jobs but have a smaller percentage of jobs lost. From what I have read, most of the lost manufacturing is going out of the country and not to other states.
- wordslinger - Thursday, Feb 9, 17 @ 3:19 pm:
–just a thought, but maybe one way to increase union membership would be to make illinois more attractive to private-sector job creators with unionized work forces. like Cat, Deere etc–
CAT is in its longest slump in nearly 100 years due to the global commodity crash. They’re laying people off all over the world.
Adjusting the thermostat in Springfield means oogats to their business model.
And despite the snake oil peddled by IPI and Trump, manufacturing jobs in Indiana are still moving to Mexico.
http://mexbiznews.com/despite-trump-pressure-companies-plow-ahead-with-moves-to-mexico/
- Anonymous - Thursday, Feb 9, 17 @ 4:27 pm:
I thought our governor was going to fix this mess Quinn left to him and we’d be great again! Instead we’re among the worst of the worst thank to guv.
- Dandy Edward - Thursday, Feb 9, 17 @ 5:49 pm:
The issue is not Gov. Rauner, but Mike Madigan, John Cullerton, Republican and Democratic Governors before Rauner and the state unions who have too much power. We need better fiscal management, bend the cost cureve and increased revenue from a small tax increase and a better business climate. That will create jobs and investment. Chris Kennedy is wrong that workers comp. does not matter it does to a business.