* From IDES…
The Illinois Department of Employment Security (IDES) announced today that the unemployment rate in September held at 5.5 percent and nonfarm payrolls increased by 7,400 jobs over the month, based on preliminary data released by the U.S. Bureau of Labor Statistics (BLS) and IDES. Job growth is still below the national average, with Illinois -38,800 jobs short of its peak employment level reached in September 2000.
“Job growth has been uneven over the past several months,” said IDES Director Jeff Mays. “Even with net job growth this year, Illinois still lags the nation in its recovery from the recession.”
“While we are seeing growth for some in the service sector, Illinois continues to lose middle class manufacturing jobs,” Illinois Department of Commerce & Economic Opportunity Acting Director Sean McCarthy said. “In the last year, Illinois has lost 12,000 manufacturing jobs. That’s an average of 1,000 families losing vital income every month, while manufacturing grew nationally. We need reforms to make sure these families aren’t left behind.”
In September, the three industry sectors with the largest gains in employment were: Professional and Business Services (+5,100); Educational and Health Services (+1,500); and Other Services (+1,200). The three industry sectors with the largest declines in employment were: Financial Activities (-1,300); Manufacturing (-800); and Leisure and Hospitality (-500).
Over the year, nonfarm payroll employment increased by +43,400 jobs with the largest gains in two industry sectors: Professional and Business Services (+23,500); and Leisure and Hospitality (+21,600). Industry sectors with the largest over-the-year declines in September include: Manufacturing (-12,700) and Information Services (-4,000). The +0.7 percent over-the-year gain in Illinois is less than the +1.7 percent gain posted by the nation in September.
The state’s unemployment rate is higher than the national unemployment rate reported for September 2016, which inched up to 5.0 percent. The Illinois unemployment rate is down -0.4 percentage points from a year ago when it was 5.9 percent. The unemployment rate stands at its lowest (for the second straight month) since January 2008. The number of unemployed and the labor force edged down over-the-month, the fifth consecutive drop this year.
The number of unemployed workers decreased -0.9 percent from the prior month to 360,500, down -5.4 percent over the same month for the prior year. The number of unemployed persons stands at its lowest level since September 2007. The labor force grew by +0.8 percent in September over the prior year, but decreased -0.1 percent over-the-month. The unemployment rate identifies those individuals who are out of work and are seeking employment. An individual who exhausts or is ineligible for benefits is still reflected in the unemployment rate if they actively seek work. [Emphasis added.]
Needless to say, we can ill afford to lose those manufacturing jobs. And more losses are on the way.
* Crain’s…
One of the main suppliers of the boxes for the iconic Frango Mints is shifting a portion of its operations to Wisconsin, taking advantage of government incentives worth up to $1.6 million.
Colbert Packaging will relocate about 65 jobs from a facility in Lake Forest 25 miles north to Kenosha, Wis. The company plans to add another 40 to 45 jobs there over the next two years. President Jim Hamilton said the move allowed Colbert to keep the same skilled employees and easy interstate access while reducing taxes and real estate costs.
“Wisconsin rolled out the welcome mat,” said President Jim Hamilton. “This state has no welcome mat. It’s like, ‘You’re here. Good.’” […]
While Wisconsin offered incentives, Colbert faced the expiration last year of a useful Illinois tax credit Illinois that applied to the purchase of printing presses. A new press costs the company $3.5 to $5 million, Hamilton said, the company would have had to pay sales tax on that purchase if it was made in Illinois.
Wisconsin’s tax package was matched in Illinois by the expiration of a tax exemption carved out for the state’s printers. A press costs the company $3.5 to $5 million, Hamilton said, and with the exemption expiring, it now has to pay sales tax on that equipment purchase.
Scream all you want about corporate welfare, but allowing that credit to expire last year cost us those jobs and likely several more. This impasse just isn’t hurting people who depend on the budget.
Also, where the heck was DCEO on this one? I thought we had a pro-business governor?
…Adding… From the IMA…
In the wake of another dismal jobs report from the Illinois Department of Employment Security, Greg Baise, CEO and president of the Illinois Manufacturers’ Association released the following statement in reaction to recent manufacturing job losses from Colbert Packaging and GE Lighting.
“Another disappointing jobs report punctuates the dilemma Illinois has in keeping middle class jobs,” Baise said.
“The General Assembly must act as soon as possible to fix the problems plaguing Illinois. This news is the latest example that government policies are destroying the manufacturing sector and our middle class jobs. The Illinois economy will continue to worsen until the state has a balanced budget and passes real economic development reforms that will get our economy moving again.”
* Related…
* Matton’s GE Lamp Plant Announces Official Closure
