Capitol Fax.com - Your Illinois News Radar

IDES says Illinois lost 800 manufacturing jobs last month

Posted in:

Illinois
Updated Posts

* 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

posted by Rich Miller
Thursday, Oct 20, 16 @ 12:09 pm

Comments

The country has had a no growth economy for years. No wonder the states battle among themselves for rare opportunities.

Comment by Keyser Soze Thursday, Oct 20, 16 @ 12:20 pm
Mattoon lost Staples this month as well. Not a huge number of jobs there, but still…

Staples also left because of an expiring tax break.

Comment by MSIX Thursday, Oct 20, 16 @ 12:24 pm
“I thought we had a pro-business governor?”

LOL

Comment by Nick Name Thursday, Oct 20, 16 @ 12:25 pm
–Scream all you want about corporate welfare, but allowing that credit to expire last year cost us those jobs and likely several more. –

Cost whom what? I’m guessing the same people who worked in Lake Forest will find their way 20 miles up the road to Kenosha.

Comment by wordslinger Thursday, Oct 20, 16 @ 12:26 pm
Recent newspaper article (or was it on the TV) on Ohio made the claim that since 2010 or so - Ohio has lost one-third of its manufacturing jobs. But one can distinguish between less jobs and less manufacturing - since automation is a relentless primary factor - many years.

Comment by rafa Thursday, Oct 20, 16 @ 12:43 pm
You got it wordslinger. As far as blue collar migration to Wisconsin, to quote Will Rogers: Will raise the average i.q. of both states.

Comment by wondering Thursday, Oct 20, 16 @ 12:45 pm
Unfortunately the folks at DCEO that matter have been focused on creating the private DCEO (so they can escape pesky things like FOIA, revolving door, etc). And the private DCEO has yet to really do anything, check out their website. They certainly haven’t disclosed who is funding them.

Noteworthy that Colbert Packaging didn’t mention Madigan, prevailing wage, workers comp, or any of the ills that the Turnaround Agenda purportedly fixes as why they are leaving the state. They mentioned that the state didn’t make them feel welcome.

That is squarely a failure on this administration. Especially its superstar private DCEO.

Comment by Henry Francis Thursday, Oct 20, 16 @ 12:46 pm
What else is new?

Comment by Rocky Rosi Thursday, Oct 20, 16 @ 1:01 pm
Not enough of a commission, Intersect??? /s

Comment by Anon221 Thursday, Oct 20, 16 @ 1:04 pm
Henry Francis, not following. What type welcome do you think Colbert means? The governor show up with fresh baked cookies?

Comment by Ron Thursday, Oct 20, 16 @ 1:08 pm
GDP growth has been robust for a few years now. Trump is an idiot.

Comment by Ron Thursday, Oct 20, 16 @ 1:09 pm
What are the wages in WI vs. IL. How about workers comp costs?

Comment by Ron Thursday, Oct 20, 16 @ 1:12 pm
“Also, where the heck was DCEO on this one? I thought we had a pro-business governor?”

2 snaps and twist!!! haha!!

Comment by New Slang Thursday, Oct 20, 16 @ 1:15 pm
The fact is that the Gov and lawmakers have not reinstated key incentives like the graphic arts exemption. As a result, Illinois is losing many companies like Colbert Packaging while others are locating new presses and the resulting jobs in other states.

Comment by 4 percent Thursday, Oct 20, 16 @ 1:21 pm
Who’s to know if it was corporate extortion gone wrong or DCEO incompetence or a combination of both.

I do know for certain that we don’t have the revenue to help pay for a private companies printing press right now. It’s math.

Not only that. I’d put a lot of other things in front of a private press that doesn’t benefit a lot of people.

Comment by Honeybear Thursday, Oct 20, 16 @ 1:25 pm
It should be noted that the governor’s (and Proft’s) BFF Uiehlein took the cheesehead corporate welfare to move his facility to Kenosha County, yet still resides in Lake Forest.

In effect, Wisconsin taxpayers, through Gov. Walker’s handouts, are subsiding the Illinois GOP through Uiehlein’s campaign contributions.

Comment by Anonymous Thursday, Oct 20, 16 @ 1:31 pm
Pardon, 1:31 was me.

Comment by wordslinger Thursday, Oct 20, 16 @ 1:32 pm
A couple of posts seem to dismiss the jobs going to Wisconsin as relatively inconsequential.

I don’t. It is important.

Comment by Federalist Thursday, Oct 20, 16 @ 1:48 pm
Ron:
Whoever this website is,
http://www.insureon.com/insureonu/costs/workers-compensation

they say the Average Cost of Workers’ Compensation Insurance Per $100 In Payroll is
Wisconsin $1.77
Illinois $1.34

Given the location and perhaps the same employees, I expect the wages will be about the same.

Google is your friend.

Comment by Bigtwich Thursday, Oct 20, 16 @ 1:59 pm
==Pardon, 1:31 was me.===

That goes without saying…really.

On the subsidies; I have a feeling his political contributions might even be more than whatever Walker gives him.

He was doling out political dough before he became a 9 to 5 Cheesehead.

Comment by A guy Thursday, Oct 20, 16 @ 2:00 pm
–That goes without saying…really.–

Guy, I’ll decide what I want to say — really.

You’re much too busy already as the unsolicited spokesman for people you don’t know.

Comment by wordslinger Thursday, Oct 20, 16 @ 2:11 pm
And the solicited spokesman for people I do know.

Comment by A guy Thursday, Oct 20, 16 @ 2:17 pm
My son is in the new/used print equipment business and has seen a drop off in sales since this expiration of sales tax exemption. As was stated by someone else ,we’re talking million dollar deals. With jobs attached such as millwrights ( to disassemble/assemble) trucking, (moving), sales and support staff and financing of such equipment. Ita a very tough business.

Comment by jon r Thursday, Oct 20, 16 @ 2:33 pm
>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.

We’ll make up for that and more once we’ve finished destroying human services, higher education, and dug the budget hole so deep to have all the leverage we need. Better this than having a planful approach to creating a stable, balanced budget where things like this aren’t done randomly and piecemeal. /s

Comment by Earnest Thursday, Oct 20, 16 @ 2:54 pm
Actually, the graphic arts machinery and equipment (”printing”)exemption expired in 2014. Both the IMA and the Chamber had proposed legislation last spring that would have reinstated the exemption - the bills were both sponsored by Representative Zalewski HB 5716 and 5717. Representative Willis also had a bill to reinstate the credit. None of the legislation moved despite Democrat sponsors.

Comment by Anonymous Thursday, Oct 20, 16 @ 5:00 pm
My former party, the Democrats are too busy protecting the 11% of the workforce to notice.

Comment by Blue dog dem Thursday, Oct 20, 16 @ 7:41 pm
Are state and local public workers really 11% of the state workforce?

Comment by Ron Friday, Oct 21, 16 @ 6:49 am