The Illinois unemployment rate ticked up to 4.9% in January, an increase of +0.2 percentage point compared to both December and the same month a year, the Illinois Department of Employment Security (IDES) announced last week.
The latest monthly unemployment report is based on data provided by the U.S. Bureau of Labor Statistics (BLS).
The slight unemployment increase came as total nonfarm payrolls increased over-the-month in January, up +18,000 (+0.3%) to 6,166,800. In a news release, IDES said this was the largest monthly increase since June 2023.
The report also shows that the revised December unemployment rate was 4.7%. The December monthly change in payrolls was revised from the preliminary report from up 11,800 jobs to up 11,600. The jobs estimate and unemployment rate reflects activity for the week including Jan. 12th.
“January’s strong payroll growth demonstrates Illinois’ economic resilience, with gains in key sectors,” Deputy Gov. Andy Manar said in the IDES release. “At the same time, the increase in the unemployment rate reflects ongoing federal uncertainty that is weighing on business investment and hiring decisions. We remain focused on maintaining stability and supporting continued job growth across the state.”
The statewide report indicated that these industry sectors posted the largest over-the-month jobs increases: Construction (+13,500), Manufacturing (+8,400), and Trade, Transportation and Utilities (+1,800). Sectors with the largest monthly payroll jobs decreases included: Private Education and Health Services (-3,500), Financial Activities (-800), and Other Services (-700).
Compared to a year ago, total nonfarm payroll jobs were up +7,900 jobs.
‘Creating opportunities’
The industry groups with the largest jobs over-the-year increases included: Private Education and Health Services (+18,300), Construction (+14,000) and Government (+2,900). The largest jobs decreases over the year were: Professional and Business Services (-12,300), Trade, Transportation and Utilities (-10,000), and Leisure and Hospitality (-3,300).
In January, total nonfarm payrolls were up +0.1% over-the-year in Illinois and up +0.2% in the nation.
“Investing in our state’s workforce and economic development initiatives are foundational to DCEO’s mission,” DCEO Director Kristin Richards added in the monthly jobs report. “The state is committed to creating opportunities for hard working Illinoisans that help us build a strong and sustainable economic ecosystem.”
The number of unemployed persons in Illinois rose to 318,700 in January, up +3.5% from December, and up +1.3% over the same month one year ago. The labor force was almost unchanged (0.0%) from December and down -1.2% 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 if they actively seek work.
IDES assists Illinois workers, jobseekers, and employers with resources including Job Fairs, IllinoisJobLink.com, and Workshare IL, analyzes and disseminates actionable Labor Market Information, and administers the Unemployment Insurance Program. Through Illinois JobLink (IJL), the state’s largest job search engine, it assists in connecting job seekers and employers. Recently, IJL showed 53,267 posted resumes with 73,269 jobs available.
