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Unemployment rate falls, but remains a point above national level - Civic Federation endorses Pritzker budget proposal

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* IDES…

The Illinois Department of Employment Security (IDES) announced today that the unemployment rate fell -0.2 percentage point to 4.8 percent, while nonfarm payrolls increased by +19,600 in February, based on preliminary data provided by the U.S. Bureau of Labor Statistics (BLS) and released by IDES. The January monthly change in payrolls was revised from the preliminary report from +8,600 to +10,800 jobs. The January unemployment rate was unchanged from the preliminary report, remaining at 5.0 percent. The February payroll jobs estimate and unemployment rate reflects activity for the week including the 12th.

In February, the industry sectors with the largest over-the-month gains in employment were: Trade, Transportation and Utilities (+8,300), Manufacturing (+4,800), Leisure and Hospitality (+4,800) and Educational and Health Services (+4,300). The industry sectors that reported monthly payroll declines were: Professional and Business Services (-3,400) and Financial Activities (-400).

“Illinois’ economic outlook remains positive,” said Deputy Governor Andy Manar. “The Pritzker Administration and IDES are dedicated to helping employers and workers connect across any industry and in every corner of the state. To find the latest opportunities and resources, businesses and job seekers can visit Get Hired Illinois or IllinoisJobLink.com today.”

“Illinois continues on a positive economic trajectory, with unemployment rates going down and job numbers going up in key industries, such as transportation, manufacturing, and hospitality,” said DCEO Director Sylvia I. Garcia. “Under Governor Pritzker’s leadership, DCEO will continue to make economic recovery our highest priority with a focus on workforce development and attracting and supporting businesses that create good-paying jobs.”

The state’s unemployment rate was +1.0 percentage points higher than the national unemployment rate reported for February, which was 3.8 percent, down -0.2 percentage point from the previous month. The Illinois unemployment rate was down -2.1 percentage points from a year ago when it was at 6.9 percent.

Compared to a year ago, nonfarm payroll employment increased by +244,800 jobs, with gains across all major industries. The industry groups with the largest jobs increases were: Leisure and Hospitality (+96,600), Trade, Transportation and Utilities (+41,400), and Professional and Business Services (+41,300). In February, total nonfarm payrolls were up +4.3 percent over-the-year in Illinois and up +4.6 percent in the nation.

The number of unemployed workers was down from the prior month, a -2.8 percent decrease to 308,600, and was down -28.8 percent over the same month for one year ago. The labor force was up +0.4 percent over-the-month and up +2.0 percent over-the-year. 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.

* Press release…

In a report released today, the Civic Federation offered its support for Governor JB Pritzker’s proposed FY2023 budget. The budget benefits from extraordinary revenue growth as the State has recovered strongly from the pandemic, with surpluses projected for FY2022 and FY2023. As detailed in the analysis, Governor Pritzker has prioritized the use of much of the surpluses to pay down debt, increase reserves, make supplemental payments and advance other priorities that the Civic Federation supports. The State is in a much stronger position than it has been for many years, as recognized by two recent credit rating upgrades, and the backlog of unpaid bills is the smallest it has been in many years. The full report is available at civicfed.org/FY23ILRecommendedBudget.

“The Civic Federation is pleased to support Governor Pritzker’s budget recommendation for the coming fiscal year, including responsible allocation of billions of dollars in federal aid and the prudent use of surplus funds to begin to chip away at some of Illinois’ staggering longtime financial burdens,” said Civic Federation President Laurence Msall. “Before the window of opportunity opened by this stability slams closed, the Governor, Illinois General Assembly and all leaders in Springfield must develop a comprehensive plan that will stabilize the State of Illinois’ finances in the long-term and prepare for future unexpected economic adversity.”

The Federation strongly supports Governor Pritzker’s proposal to use higher-than-expected State revenues to make supplemental pension payments beyond the statutory minimum, a step which has never been taken since implementation of the 50-year statutory funding plan in the 1990s.

“The Governor’s proposal is in stark contrast to gimmicks and dubious accounting changes that have historically been implemented to make or reduce already insufficient statutory payments,” said Msall.

In addition to the aforementioned supplemental payments and proposed rainy day fund contributions, the Civic Federation can support three of the four tax relief proposals included in the budget recommendation. Proposals for suspension of the sales tax on food and drugs, a property tax rebate and some license-fee waivers are narrowly targeted, have limited revenue impact and will sunset after one-year. The fourth proposal—a freeze in the scheduled cost of living increase in the motor fuel tax—provides minimal benefit to consumers and risks significant loss of current and future revenue while potentially setting a negative precedent for further tax freezes or even reductions at the expense of critical transportation improvements.

Civic Federation recommendations for the State of Illinois, all of which align closely with the primary recommendation to establish a long-term financial plan, include eliminating Prompt Payment Act interest penalties in favor of more market-based rates, using a portion of American Rescue Plan funding to pay down outstanding Unemployment Trust Fund liabilities, establishing a rainy day fund equal to 10% of General Funds revenues and various transparency and modernization initiatives.

“At the risk of sounding like a broken fiscal record, everything comes back to long-term planning for the State of Illinois and its local governments,” said Msall. “The COVID-19 pandemic is not yet over, there are significant disruptions in the international economy right now and we cannot be certain when another disruption will emerge. These would cause uncertainty for even the most fiscally stable of governments. Accordingly, it is vitally important that State leaders make plans and investments to ensure that Illinois is in a strong position to weather whatever storm comes next.”

posted by Rich Miller
Thursday, Mar 24, 22 @ 11:56 am

Comments

  1. I have to wonder if either Bourne or Demmer have ever voted for a state budget in their careers…

    … and how, given their records, whatever they be, do they think it was good when they both refused Illinois a state budget for an entire General Assembly.

    Will they vote for this budget then decide to if they are Red on it to claim and success as part of their legislative careers?

    Comment by Oswego Willy Thursday, Mar 24, 22 @ 12:18 pm

  2. Strong and deserved praise from the Civic Federation, with the understanding that more needs to be done. We came from the utter darkness of not just past fiscal mismanagement, but cruel, deliberate sabotage, to a brighter today and tomorrow.

    One of the best aspects of this improvement is that we don’t have to do austerity and whack the state workforce. But this was already known to the many who’ve helped us get better. Any such ideas need to be retired from political discourse and policy-making.

    Comment by Grandson of Man Thursday, Mar 24, 22 @ 12:32 pm

  3. =We came from the utter darkness of not just past fiscal mismanagement, but cruel, deliberate sabotage, to a brighter today and tomorrow.=

    Great post. The thing that causes me puzzlement is the ILGOP still can’t get their piano to play more than one tune.

    Comment by JS Mill Thursday, Mar 24, 22 @ 1:08 pm

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