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Unemployment rate stays at 6 percent, but weak job growth

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Illinois

* From IDES…

May Jobs in Illinois Increase +9,200; Job Growth Still Lagging Behind Other States

Illinois Unemployment Rate Remains at 6 percent

CHICAGO – The Illinois Department of Employment Security (IDES) announced today that Illinois’ unemployment rate in May held steady at 6.0 percent. The state’s unemployment rate is higher than the national unemployment rate reported for May, which inched up from the prior month to 5.5 percent. Nonfarm payroll employment gained +9,200 jobs, based on preliminary data released by the Department and the U.S. Bureau of Labor Statistics (BLS).

The BLS revised April data which showed a further increase in Illinois’ job gain from a preliminary +4,800 to +5,400. Illinois has gained an average of 5,300 jobs per month since recovery from the 2008-09 recession while a majority of other states have seen a quicker recovery, per BLS data. The number of jobs in Illinois will not reach pre-recession levels until approximately June 2016, according to IDES analysts’ estimations.

“Though 9,200 new jobs are good, this represents a job growth rate of less than 0.2 percent,” said IDES Director Jeff Mays. “Illinois policymakers must continue to focus on improving our underlying business climate.”

In May, the three industry sectors with the largest gains in employment were: Professional and Business Services (+6,900), Leisure and Hospitality (+3,300) and Government (+2,300). The three industry sectors with the largest declines in employment were Manufacturing (-2,500); Trade, Transportation and Utilities (-2,300); and Financial Activities (-1,200).

Over the year, nonfarm payroll employment increased by +62,100 jobs with the largest gains in Professional and Business Services (+27,500); Education and Health Services (+14,800); and Construction (+13,700). Two key sectors posted over-the-year declines in May: Manufacturing (-7,300) and Financial Activities (-5,300).

The unemployment rate identifies those individuals who are out of work and seeking employment. An individual who exhausts or is ineligible for benefits is still reflected in the unemployment rate if they actively seek work. IDES’ IllinoisJoblink.com (IJL) program, which helps jobseekers connect with hiring companies, recently showed that 168,271 help wanted ads were available and 59,192 resumes were posted. Many positions however continue to remain unfilled. The Department continues its efforts to help spur job growth in Illinois.

In May, the unemployment rate stood 1.1 percentage points below the unemployment rate a year ago when it was 7.1 percent. The number of unemployed workers increased 0.3 percent from the prior month to 392,000 and was down -15.6 percent over the same month for the prior year.

“Illinois needs to take decisive action to address persistently low job growth through structural reforms to make Illinois competitive and attractive for business,” said Illinois Department of Commerce and Economic Opportunity Director (DCEO) Jim Schultz. “Governor Rauner’s proposed reforms will create an environment in which Illinois businesses and families can thrive.”

posted by Rich Miller
Thursday, Jun 18, 15 @ 1:11 pm

Comments

Yes, the way for Illinois to improve job growth is to be less like Minnesota and more like Kansas.

Comment by Carhartt Representative Thursday, Jun 18, 15 @ 1:14 pm
Boy, what we need is a Turnaround Agenda…

To the Post,

What I’m looking forward to is Governor Rauner cross-crossing ‘Merica poachin’ conpanies, sellin’ Illinois, you know like s traveling salesman..,

Comment by Oswego Willy Thursday, Jun 18, 15 @ 1:16 pm
UI claims are going to go up as Rauner imposes his budget austerity. He’s turning things around alright.

Comment by Philo Thursday, Jun 18, 15 @ 1:31 pm
I don’t know how much we should cheer this figure. I guess it is good that it isn’t going up, but I’m not confident that a 6% unemployment rate in 2015 is as good as a 6% unemployment rate twenty years ago.

Comment by VanillaMan Thursday, Jun 18, 15 @ 1:37 pm
“The three industry sectors with the largest declines in employment were Manufacturing (-2,500); Trade, Transportation and Utilities (-2,300); and Financial Activities (-1,200).”

The status quo just isn’t workin’ fellas.

Comment by Allen Skillicorn Thursday, Jun 18, 15 @ 1:38 pm
=Illinois needs to take decisive action to address persistently low job growth through structural reforms to make Illinois competitive and attractive for business,” said Illinois Department of Commerce and Economic Opportunity Director (DCEO) Jim Schultz. “Governor Rauner’s proposed reforms will create an environment in which Illinois businesses and families can thrive.”=
Took 12 years to get Illinois into this financial mess and it’s going to take a while to get us out. Rauner has a plan. Now, if the Democrats have a plan, it would be nice to see it. By a plan, not the same old some old tax and spend that got into this financial mess.

Comment by Apocalypse Now Thursday, Jun 18, 15 @ 1:40 pm
I love the way IDES is bending over backwards to make this sound like bad news.

Comment by Soccermom Thursday, Jun 18, 15 @ 1:44 pm
Uncertainty, about taxes, debt, leadership, and political fighting, all contribute to a negative business climate in Illinois. Thus the lack of employment growth!

Comment by Anonymous Thursday, Jun 18, 15 @ 1:45 pm
Facts are stubborn things, my friends.

Here’s the list of states with HIGHER unemployment rates in April than Illinois (Which was tied with Arizona, btw)
38 TENNESSEE 6.0
39 RHODE ISLAND 6.1
40 NEW MEXICO 6.2
41 CALIFORNIA 6.3
41 CONNECTICUT 6.3
41 GEORGIA 6.3
44 NEW JERSEY 6.5
45 LOUISIANA 6.6
45 MISSISSIPPI 6.6
47 ALASKA 6.7
47 SOUTH CAROLINA 6.7
49 WEST VIRGINIA 7.0
50 NEVADA 7.1

Comment by Soccermom Thursday, Jun 18, 15 @ 1:47 pm
Here are the states that were right above us:

22 KENTUCKY 5.0
23 OHIO 5.2
23 OREGON 5.2
25 MARYLAND 5.3
25 PENNSYLVANIA 5.3
27 INDIANA 5.4
27 MICHIGAN 5.4
29 NORTH CAROLINA 5.5
29 WASHINGTON 5.5
31 FLORIDA 5.6
32 ARKANSAS 5.7
32 MISSOURI 5.7
32 NEW YORK 5.7
35 ALABAMA 5.8

Comment by Soccermom Thursday, Jun 18, 15 @ 1:48 pm
==I love the way IDES is bending over backwards to make this sound like bad news.==

They’ve done that every month since the new administration took office.

These reports are used as additional literature for the “Turnaround Agenda” campaign. You can’t use them for that unless you portray everything as being bad.

Comment by Demoralized Thursday, Jun 18, 15 @ 1:57 pm
But, but, but the left will tell you we need to raise taxes, that will take care of all of our ills.

Comment by anon Thursday, Jun 18, 15 @ 1:58 pm
Could somebody help a mother out? I have a document I have to get out the door, but I would love to see side-by-side state rankings for:

Unemployment rates
Sales tax rates
Income tax rates

In a quick little skip through the google, I couldn’t find ANY evidence that low-tax states fare better in unemployment rates. Doesn’t seem to be any correlation at all, in fact.

Does somebody have time to pull together a little three-column excel sheet?

Thanks!

Comment by Soccermom Thursday, Jun 18, 15 @ 1:58 pm
===But, but, but the left will tell you we need to raise taxes===

Rauner must be part of the left, then.

Comment by Rich Miller Thursday, Jun 18, 15 @ 1:59 pm
Construction has a lot of union employees, yet is growing despite the lack of a turn around agenda? How very odd.

Comment by A Jack Thursday, Jun 18, 15 @ 1:59 pm
And 6% today is nothing like 6% 20 years ago, the number of people unemployed, not looking and thus not counted as unemployed today dwarfs that of 20 years ago.

Comment by anon Thursday, Jun 18, 15 @ 2:00 pm
Well I think I’d rather have DES put job growth or decline in more respective terms than the last two administrations that hailed 0.1 percent growth as proof “Governor (insert name here)’s policies are working…” 9,200 more working than last month is good, but in perspective of a workforce of 6 million, it truly is paltry.

Comment by Commonsense in Illinois Thursday, Jun 18, 15 @ 2:01 pm
“==I love the way IDES is bending over backwards to make this sound like bad news.==” To mix a bit of national in here, that’s one big thing that turned me off about Bob Dole in ‘96. He kept harping about the “sluggish economy.” (It was growing at a steady 2% back then.) That sounded like “It really isn’t bad, but I’ve got to say something anyway” to me.

Comment by Skeptic Thursday, Jun 18, 15 @ 2:03 pm
=But, but, but the left will tell you we need to raise taxes, that will take care of all of our ills.=

Yes, look at high tax states like Alaska at 47. Our problem isn’t that our taxes are too high. It’s that we try and balance are books of workers. We need the wealthy to pay a tax rate equivalent of what they’re paying in Indiana and Wisconsin.

Comment by Carhartt Representative Thursday, Jun 18, 15 @ 2:06 pm
-@Apocalypse Now- I think you mean the ole spend and NOT tax plan. IL’s income tax rate has been among the lowest in the country for years (with the exception of 4 years where it was closer to avg). IL exempts virtually all services from sales tax.

People want & need the services the state provides: affordable childcare & higher education education, quality public safety and independent living services to name a few.

Maybe we should start paying them.

Comment by Bull Moose Thursday, Jun 18, 15 @ 2:10 pm
==And 6% today is nothing like 6% 20 years ago, the number of people unemployed, not looking and thus not counted as unemployed today dwarfs that of 20 years ago.==

I was waiting for that argument to come out. How long do you think you can continue to use that? I’m guessing as long as it fits your political aims. Unemployment could be zero and some of you kooks would still use that argument.

Comment by Demoralized Thursday, Jun 18, 15 @ 2:10 pm
But, but, but the left will tell you we need to raise taxes , that will take care of all of our ills==

Raising taxes will hopefully pay toward the debt we owe to our workers that insufficient revenue all these years made legislators borrow from it’s obligations to workers. I haven’t heard lots of talk about needing money for brand new programs. Paying down the debt is what is earmarked for any increase in revenue. Progress was being made until the tax rollback.

Comment by AnonymousOne Thursday, Jun 18, 15 @ 2:24 pm
Unemployment could be zero and some of you kooks would still use that argument.

That’s because the number is no longer credible and doesn’t mean the same as it used to as an indicator of economic health. Even if it measured with exactitude the same conditions as always, it no longer reflects how citizens feel.

Our belief in government has effected our belief in the figures it produces. Remember, according to our traditional standards, our recession ended six years ago. Folks just don’t believe in these figures as they used to. They’ve become dated talking points in political arguments.

All I want to know is if the number is going up, or down. I think it can still detect that. I don’t read anything more into it.

Comment by VanillaMan Thursday, Jun 18, 15 @ 2:25 pm
I don’t think it is kooky to question government figures like this. You think Kentucky is doing that much better than we are? These numbers can seem to indicate that.

I’m cynical, not a kook.

Comment by VanillaMan Thursday, Jun 18, 15 @ 2:29 pm
anon, I completely agree with you. I think it’s just terrible that so many mothers of young children are choosing to stay at home and sponge off their husbands. In fact, according to Pew Research, 29 percent of mothers nationwide are staying at home with their kids, compared to a low of 23 percent in 1999. Team that with the recent uptick in births, and you have a real disaster on your hands.

And don’t get me started about all these slacker baby boomers who are heading for the (workplace) exits. I mean, one in every 9 people in Illinois is over age 65. And so many of them just sit on their butts watching Netflix.

So you’re absolutely right — 6% today is nothing like 6% 20 years ago. And we need to get those moms and elderly people to get back on track, careerwise.

Comment by Soccermom Thursday, Jun 18, 15 @ 2:38 pm
“I don’t think it is kooky to question government figures like this.” Even the right wing does it. They’ll point to a drop in UI claims and say, “See? People are just giving up!” and “See? People are just underemployed.”

Comment by Skeptic Thursday, Jun 18, 15 @ 2:38 pm
Soccermom, I’m guessing about three months from now, lower unemployment will be a good thing.

Allen, you’ve got tnose meaningless talking points down cold. That’s quite an achievement in your world, I imagine.

Comment by Wordslinger Thursday, Jun 18, 15 @ 2:47 pm
==it no longer reflects how citizens feel.==

If you want a “feelings” indicator look at the Consumer Confidence index. These aren’t meant to be feelings indicators. They are economic indicators. They aren’t always going to match.

Comment by Demoralized Thursday, Jun 18, 15 @ 2:51 pm
The quality of the workforce that is looking for jobs is less than ideal right now.

Local employer needed an additional driver. They got 15 resumes. Phone interviewed 5 and did a face-to-face interview with the best of them all.

The new hire showed up for work on the first day. When they submitted the driver’s license to the insurance company, it came back with 10 more traffic tickets than the candidate had admitted to. A meth charge (trial date set for the future) was also discovered.

A relative has had countless interviews with candidates where they asked if they could put off the drug test for a week or two.

Have a child that can communicate, show up for work on time and pass a drug test? They are highly sought after.

Comment by Downstate Thursday, Jun 18, 15 @ 2:54 pm
=6% today is nothing like 6% 20 years ago.=

Jobs themselves are not like they were 20 years ago. 20 years ago more substantial jobs in union factories, utilities, warehouses, trucking and stores were far more common. People in these middle class jobs made a living and paid a substantial amount of taxes. Many of the new jobs pay less then the same work paid 20 years ago.

Comment by DuPage Thursday, Jun 18, 15 @ 2:58 pm
“I don’t think it is kooky to question government figures like this. You think Kentucky is doing that much better than we are? These numbers can seem to indicate that.”

I am curious about why you doubt the data. Do you think the data is incomplete? Do you not trust the folks tabulating the data? Do you not like what the data says? What yardstick do you think should be used to measure our economy?

Comment by CapnCrunch Thursday, Jun 18, 15 @ 3:01 pm
Downstate, thanks for extrapolating those two anecdotes to a statewide conclusion. That’absolutely brilliant stuff.

Comment by Wordslinger Thursday, Jun 18, 15 @ 3:10 pm
Meanwhile, in Indiana…

Indiana’s unemployment rate dropped nearly half a percentage point in April — among the best one-month improvements in the country — but some economists say the jobs outlook remains mixed.

The April unemployment rate was 5.4 percent, down from 5.8 percent in March, according to the U.S. Bureau of Labor Statistics. The lower rate came as Indiana added 10,600 jobs in April, according to the Indiana Department of Workforce Development. Trade, transportation and utilities led the way. There was also positive growth in construction and in professional and business services. There were job losses in financial activities and manufacturing.

Those additional jobs nudged the state’s private-sector job count nearer to the state’s all-time high number of jobs — a level not seen since March 2000. The state is now 7,800 jobs shy of that number.

Others took a more sober view of the numbers.

While state’s number of jobs is nearing the all-time high reached it March 2000, the state’s population has grown by more than 500,000 people since then, says Derek Thomas, a senior policy analyst with the progressive Indiana Institute for Working Families. He noted that for the fourth straight month fewer people are participating in the state’s labor force, one of the largest participation declines in the country.

Compared to its neighbors, Indiana jobless rate is middling. Indiana has a better unemployment rate than Illinois (6%) and an identical rate to Michigan (5.4%). But Indiana’s rate remains higher than Ohio (5.2%) and Kentucky (5%).

Comment by Soccermom Thursday, Jun 18, 15 @ 3:12 pm
Wordslinger,
Just wanted to offer perspective on the challenges faced by businesses right now.
The stories are typical of what I’m hearing from nearly every employer in the state (and in the other states that I operate in.)

Comment by Downstate Thursday, Jun 18, 15 @ 3:13 pm
Well, Downstate, if you’re talking to “nearly every employer in the state,” that’s a different story.

Comment by Wordslinger Thursday, Jun 18, 15 @ 3:27 pm
==We need the wealthy to pay a tax rate equivalent of what they’re paying in Indiana and Wisconsin.==

And the retired.

Comment by nixit71 Thursday, Jun 18, 15 @ 4:18 pm
Grow up Demoralized. And, take an econ class or two.

Sheesh!!

Comment by anon Thursday, Jun 18, 15 @ 5:00 pm
@Soccermom - “…I couldn’t find ANY evidence that low-tax states fare better in unemployment rates. ”

You left out property tax rate, a key component to determine the overall tax burden on an individual in a particular state. But if you consider overall tax burden, here’s some #’s:

- 3 of the 4 states with the highest overall tax burden are ranked in the bottom 10 in unemployment: NJ, CT, CA (NY is ranked 35)
- 8 of the top 10 states in unemployment also are in the bottom half of overall tax burden.

Conversely:
- VT and MN, 2 states with high tax burdens, rank 5 and 6 in unemployment
- Some states w/ the lowest tax burdens have high unemployment: LA, MS, AK, NV

Comment by nixit71 Thursday, Jun 18, 15 @ 5:23 pm
Six of the ten states with higher unemployment then Illinois are right to starve states,with much lower comp rates … Hmmmm … Must be a typo…

Comment by Outside the Bubble Thursday, Jun 18, 15 @ 5:33 pm
19 of the 36 states with LOWER unemployment then Illinois are right to work states. (52%)
6 of the 13 states with higher unemployment then Illinois are right to starve states. (46%)

The numbers say it’s a wash.

Comment by nixit71 Thursday, Jun 18, 15 @ 5:44 pm
I know a few people who have been out of work for several years. They have given up looking for a job. Not to say they couldn’t have found jobs, they refuse to “lower” themselves to work in fast food, customer service or any other industry they feel isn’t going to pay them a six figure income, even though they only made 50K before losing their jobs.

The issue of the real unemployment rate has been brought up and ridiculed. But what I am asking, as I cannot find a independent source for the information, is if these people are counted in the published rates? By independent, I mean a non political source without an agenda.

And if these people are not counted, then why not?

Comment by FormerParatrooper Thursday, Jun 18, 15 @ 6:00 pm
FormerParatrooper

Those people, I believe are not counted. But I did get a chuckle. For those who “refuse to lower themselves” there are others who are told “you’re too educated, or experienced, or professional or whatever to do this job—you wouldn’t be satisfied with this work.” Happened countless times to me and when protested that the lower wages were fine, they’d have a look on their faces like –what’s wrong with this person? Works both ways.

Comment by AnonymousOne Thursday, Jun 18, 15 @ 6:27 pm
Bruce Rauner is a job killer!

The unemployment rate dropped substantially during Quinn’s term, and during the 5% state income tax. Now that the income tax rate was cut, the unemployment rate is stagnating and not dropping. It’s been 6% for three months in a row.

See, two can play this nonsense game.

Here’s more:

Since the tax rate was cut at the beginning of the year, where are all the jobs? Where are all the people leaving high income tax states to move to low income tax Illinois?

Why can’t we be like Minnesota and Vermont, two states with far lower unemployment rates and much higher income taxes for top earners?

Two can play the propaganda game and try to twist the narrative to fit ideology.

Comment by Grandson of Man Thursday, Jun 18, 15 @ 6:58 pm
AnonymousOne. I had the same over qualified refusal too. Blows your mind when you are willing to do the job but they seem scared to hire you. Maybe they figure you are gunning for their job.

Thank you for your input on the numbers.

Comment by FormerParatrooper Thursday, Jun 18, 15 @ 7:24 pm
The unemployment rate is not a very good indicator despite the emphasis in the press. Private sector job growth is a better indicator.

Since 12/07 Illinois has lost 42.6K jobs, Texas has gained 1.1 Million, California 666K gain.

http://www.jec.senate.gov/public/_cache/files/00c02b3b-25e0-42f8-a61b-de937b3f63cb/sbs-may-executive-summary-final.pdf

Comment by Midway Gardens Thursday, Jun 18, 15 @ 10:00 pm
Grandson, you know, I know and everybody else knows the numbers are much more accurate now. There was some book cooking going on brother!!

Comment by anonano Thursday, Jun 18, 15 @ 10:49 pm
==The unemployment rate dropped substantially during Quinn’s term, and during the 5% state income tax.==

When Quinn took office, unemployment was at 8.5%. It peaked at 11.2% one year later. It lagged the national average every month he was in office. 5 years after he took over from Blago, IL had an unemployment rate 25% higher than the national avg. The only reason it “dropped substantially” is because it got so high to begin with. Context, sir?

Comment by nixit71 Thursday, Jun 18, 15 @ 10:56 pm
The number you need to consider is the “Labor Participation Rate”, which measures the ratio of people who should be in the workforece to the number of people who actually are. The entire country is in the crapper with respect to employment, with a participation rate near the low of the last forty or fifty years. Comparing a starving person to another starving person in order to get a ranking is just a feel-good exercise.

Comment by Tom K. Friday, Jun 19, 15 @ 6:37 am
The LPR is at levels seen during the Jimmy Carter years. And, no, it is not the result of baby boomers retiring. That is part of it but the much larger issue lies with the 20 and 30 somethings who are not working or looking for work.

Comment by anon Friday, Jun 19, 15 @ 9:55 am