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“Chicago is the economic capital of a slow-growing region”

Friday, Nov 22, 2019 - Posted by Rich Miller

* Greg Hinz

Job growth in metropolitan Chicago suddenly has come to a dead halt, according to newly released state data, raising questions about how Illinois as a whole can thrive if its economic engine is idling.

The data is from the latest edition of Where Workers Work, a publication of the Illinois Department of Employment Security. Unlike most jobs numbers, it is based not on surveys and estimates but on an actual hard count of private-sector jobs covered by unemployment insurance that is considered highly reliable.

According to the report, the total number of jobs in the six-county metro area in the year ended March 31 grew just 1,361, to 3,598,232. That’s not even a tenth of a percent, and far and away is the lowest annual rise since the city and state began recovering from the subprime mortgage recession a decade ago. […]

[Thomas Walstrum, senior business economist for the Federal Reserve Bank of Chicago said via email] “My best explanation is that this slowdown in jobs growth in Chicago appears to be in line with a slowdown in jobs growth in the Midwest and U.S. as a whole. . . .Because Chicago and the Midwest have been growing slower than the country throughout the recovery from the Great Recession, a slowdown in jobs growth everywhere looks worse here. I wouldn’t interpret these numbers as a sign that the Chicago economy is tanking while everywhere is doing well, but as a reflection of the fact that Chicago is the economic capital of a slow-growing region.”

       

18 Comments
  1. - Six Degrees of Separation - Friday, Nov 22, 19 @ 11:47 am:

    In the words of our esteemed late colleague “Bill”…

    Whoops!


  2. - supplier_demand - Friday, Nov 22, 19 @ 11:50 am:

    Further data on jobs in the region:
    “Jobs are down 0.2% this year in Ohio, 0.3% in Indiana, 0.4% in Michigan and 0.5% in West Virginia.”

    https://www.cleveland.com/datacentral/2019/11/jobs-slide-down-this-year-in-ohio-neighboring-indiana-michigan-west-virginia.html


  3. - Regular democrat - Friday, Nov 22, 19 @ 12:03 pm:

    People may have their differences with the gov but having a stable budget seems to have stabilized the university system which will pay big dividends for the area.


  4. - Sue - Friday, Nov 22, 19 @ 12:18 pm:

    Goes to show you the importance of good govt. 20 plus years ago MA was known as Taxachusetts and was mired in slow growth. Fast forward to the present and MA has like a zero unemployment rate and housing doubled in price since 09. The people who have led Illinois those same 20 years are pathetic


  5. - Lucky Pierre - Friday, Nov 22, 19 @ 12:21 pm:

    I am sure growth will pick up if JB’s record tax hikes on successful small businesses kicks in


  6. - Lester Holt’s Mustache - Friday, Nov 22, 19 @ 12:29 pm:

    This can’t be right, I’ve been told by Very Important Persons on the Twitter that we have the greatest economy in the history of history and that claims of an economic slowdown are “fake news“. You just wait until blue dog gets here, he’ll set this guy Walstrum straight


  7. - Responsa - Friday, Nov 22, 19 @ 12:35 pm:

    The We Work layoffs announced yesterday are going to play big into this. (Both employee wise and office space wise because We Works is a big player in Chicago. There’s certainly a chicken egg aspect to this but any way you dice it, it’s bad news for Chicago.


  8. - PublicServant - Friday, Nov 22, 19 @ 12:36 pm:

    What does Davesurance have to say about it? Forget about this Fed deep-stater.


  9. - njt - Friday, Nov 22, 19 @ 1:23 pm:

    ===suddenly has come to a dead halt===

    This seems disingenuous at best. As the article states the data is March 19 YoY. From the report, the largest decline was in retail. So (1) many people leave jobs in the Spring after bonuses are paid and (2) retail continues to decline. Would be more interesting to see how the rest of the year is doing as opposed to data that is now nearly 8 months old.


  10. - Davesurance.com - Friday, Nov 22, 19 @ 1:29 pm:

    Can’t wait for this to be used out of context.


  11. - ZC - Friday, Nov 22, 19 @ 1:39 pm:

    The magic elixir tax cut people, tire me.

    Now if you wanted to talk about business over regulation or worker’s compensation or how the pension clause is eating away our budget, we could talk!

    But please, if you think tax cuts for the rich heal all ills, please move to Kansas.


  12. - Oswego Willy - Friday, Nov 22, 19 @ 1:47 pm:

    ===… a reflection of the fact that Chicago is the economic capital of a slow-growing region.===

    The reality is Chicago is a vital economic engine of, not only, Illinois, but the Midwest. This idea that Chicago, “Chicagoland”, is bad for the state, the irony is the region, even with a new 51st state, needs Chicago for everyone to prosper. That’s the trolling the 51st staters don’t grasp; Chicago’s economic muscle isn’t hurting everyone, it’s rising up places beyond its own Illinois borders.

    The goal of this current gubernatorial administration is to look at the opportunities without bad mouthing the perceived obstacles.


  13. - JS Mill - Friday, Nov 22, 19 @ 2:31 pm:

    =20 plus years ago MA was known as Taxachusetts and was mired in slow growth. =

    It is still called Taxachusetts by the citizens of Mass.

    What else do you have?


  14. - lake county democrat - Friday, Nov 22, 19 @ 2:46 pm:

    Watch out for Minneapolis.


  15. - Sue - Friday, Nov 22, 19 @ 3:21 pm:

    JS. MA has a 5 percent flat tax and lower sales and real estate taxes then Illinois. You obviously don’t know the realities. Only bad thing about MA taxes is they have a punitive tax on short term cap gains. Trust me anyone who owns a house in Illinois would love to have that house in MA. Boston resl wstate is up 100 percent since 2008. Ours is still 30 percent below where it was before the crash


  16. - Enviro - Friday, Nov 22, 19 @ 3:25 pm:

    ==The goal of this current gubernatorial administration is to
    look at the opportunities without bad mouthing the perceived obstacles.==

    I agree with this 100%. Illinois and Chicago will thrive with our new leadership.


  17. - Enviro - Friday, Nov 22, 19 @ 3:36 pm:

    JS: In MA the income from an IRA, 401(k), 403(b) or any other type of retirement savings account is taxed at the state income tax rate of 5.05%. Income from a non-public employer pension is also taxable.


  18. - Da Big Bad Wolf - Monday, Nov 25, 19 @ 9:25 am:

    Aesop’s fable: slow and steady wins the race.


Sorry, comments for this post are now closed.


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