The unemployment rate in Illinois inched above the national average in August even as the state’s nonfarm payrolls grew, according to the Illinois Department of Employment Security’s (IDES) monthly unemployment report.
Based on preliminary data provided by the U.S. Bureau of Labor Statistics (BLS), IDES announced Thursday, Sept. 19, that nonfarm payrolls were up +800 while the unemployment rate increased +0.1 percentage point to 5.3% in August.
In addition, the IDES said its revised July report showed a monthly change in payrolls from the preliminary report, from +12,900 to +10,300 jobs. The revised unemployment rate was unchanged at 5.2% for July.
“The strength and stability of the Illinois labor market continues to grow with statewide payroll expansion and the diverse workforce,” Deputy Gov. Andy Manar said in the IDES news release. “IDES remains to serve in its role as a pivotal resource to both jobseekers and employers who are eager to invest in the state’s thriving economy.”
In August, the Illinois industry sectors with the largest over-the-month job gains included: Trade, Transportation, and Utilities (+2,300), Construction (+2,200), and Financial Activities (+1,600). The industry sectors with the largest monthly payroll job declines included: Leisure and Hospitality (-2,900), Professional and Business Services (-1,600), and Other Services (-1,500).
The number of unemployed workers in August was 343,100, up +0.4% from the prior month, and up +15.7% over the same month one year ago. The labor force was almost unchanged (0.0 percent) over-the-month and up +1.2% over the year.
The state’s unemployment rate was +1.1 percentage points higher than the national unemployment rate reported for August. The national unemployment rate was 4.2%, down -0.1 percentage point from July. The Illinois unemployment rate was up +0.7 percentage point from 4.6% a year ago.
In an earlier report, IDES said the unemployment rate for the Davenport-Moline-Rock Island MSA increased to 5.1% in July from 4.3% in July 2023.
Compared to a year ago, total nonfarm payroll jobs increased by +36,300 jobs. The industry groups with the largest increases in jobs included: Government (+35,600), Private Education and Health Services (+26,100), and Other Services (+11,200). The industry groups with the largest decreases in jobs included: Professional and Business Services (-27,800), Financial Activities (-5,400), and Information (-4,400). In August, total nonfarm payrolls were up +0.6 percent over-the-year in Illinois and up +1.5 percent in the nation.
“As payroll jobs steadily increase, DCEO is committed to our continuous efforts to invest in and support the state’s workforce,” Kristin Richards, director of Illinois Department of Commerce and Economic Opportunity, said in the release. “Building a strong labor market will not only bolster the state’s economic growth, but it will ensure Illinois continues to be the best place to live, work and do business.”
The August payroll jobs estimate and unemployment rate reflect activity for the week including Aug. 12. 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 rate if they actively seek work.
IDES helps connect job-seekers to employers by hosting job fairs and hiring events with statewide workforce partners, and through its Illinois JobLink (IJL), the state’s largest job search engine. Recently, IJL showed 60,004 posted resumes with 87,908 jobs available.
The IDES also provides vital employment services to 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.
