By: Ted Dabrowski and John Klingner
Illinois’ taxes, corruption, unfriendly business environment and high labor costs continue to take a toll on the state’s economic recovery. And job prospects for many Illinoisans, particularly in the leisure and hospitality industry, have been made even worse by the state’s COVID policies, some of the nation’s strictest.
Contrast Illinois’ poor 5.3 percent unemployment rate in December 2021, the nation’s 11th-worst, with those of its neighboring states. Indiana’s 2.7 percent rate is almost half that of Illinois’, while Wisconsin’s unemployment is at just 2.8 percent.
All of Illinois’ other neighbors have rates equal to or better than the 3.9 percent national average, according to the most recent Bureau of Labor Statistics data.
Far more Illinoisans would be employed today if Illinois was simply as competitive as its neighbors. Illinois would have nearly 160,000 more people working if it had the same unemployment rate as Indiana or Wisconsin.
Even if Illinois had Kentucky’s 3.9 percent unemployment rate – the highest among its neighbors – Illinois would have nearly 90,000 more employed workers today.
The pain of Illinois’ poor jobs recovery isn’t distributed evenly. The state’s hotel, entertainment and restaurant industries have suffered the most.
Jobs in Illinois’ food service sector are still down 15 percent, or more than 80,000 jobs, compared to Feb. 2020 according to Illinois Department of Employment Security data. And jobs in arts, entertainment and recreation remain down 16 percent.
Illinois still imposes a statewide mask mandate (to be rescinded Feb. 28) and the Cook County area imposes a vaccine-passport mandate – both of which impact entertainment and restaurants more than other businesses.
In contrast, Illinois’ neighbors dropped most of their COVID restrictions months ago.
The above data captures just a point in time (as of December 2021), but it’s not a one-off. Illinois’ unemployment rate has significantly lagged its neighbors the entire pandemic.
As many as 160,000 Illinoisans are unnecessarily going without jobs today. But it’s an election year in Illinois and maybe, just maybe, lawmakers and candidates will finally address the fiscal and economic reforms – from pension reform to a roll back in collective bargaining powers to lower property taxes – needed to improve Illinois’ jobs climate.
Until they do, many Illinoisans will continue to suffer.
Read more from Wirepoints:
- A Tribune article betrays the principle that lawyers should not hesitate to represent unpopular clients
- Appeal Dismissed: Illinois Statewide School Mask Mandate Remains Gone For Now, Probably For Good.
- COVID, crime and education draw all the attention, but Illinois pensions will still have a staggering impact in 2023
- Pritzker’s $1 billion in “tax relief” would be devoured by inflation in less than a month
With $162 billion more from taxpayers, couldn’t you deliver a few bond upgrades, too
Audio and summary
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
I wonder who the governor is going to blame this on? The recovery curve looks terrible compared to the other states.
Those hospitality jobs ain’t coming back either. The conventions, the tourists, the weekenders, they’ve all moved on to other cities and resort towns now.
Chicago’s tale of two cities (segregated and rich vs poor) is finally changing; now we are one city, all gone to hell.
A little surprised that mining lost so many jobs. Coal because of the green energy bills?
Obama targeted coal mines during his term literally ignoring the needs of his home state.
Obozo isn’t from IL. He isn’t from HI either.
Could the fact that we live in a sanctuary state surrounded by anti or non sanctuary states be a big part of the problem. I believe it does.
oops
i don’t think it’s really a shortage of jobs, though the cost of doing business does affect business and employment. There are jobs, but many are low paying and low status and people don’t want them. They can stay on the government cheese as Shaun Thompson would say. Also, we have pockets of high poverty with people that are practically illiterate. They really aren’t qualified to do much either.
They really aren’t qualified or motivated to do much either.
Not only does Indiana have the lowest unemployment in the Midwest but Indianapolis also has the lowest unemployment rate in America.
Obviously we are doing something right.
It’s not rocket science – avoid Democrats and public employee unions as much as possible. Odds are if you do that, things will work out for the better. However, you need to remain firm and not go soft like RINO’s do.
Priztker has harmed or destroyed so many small businesses in Illinois with his malicious Covid actions.
Pritzkers voting base has nothing to do with jobs.
Unionized State employees and the Free Stuff Army assures him of plenty of votes
That and the constant shouting that all Republicans are racists white national nazis
If your company relocates out of Illinois, don’t worry, that can be the best thing possible for you and your family. After leaving Illinois, you can relax with your morning coffee and casually read Wirepoints. Imagine being able to read about all of Illinois financial and moral problems without being concerned, worried, or depressed. Also, for jerks like me, we enjoy watching Illinois suffer due to its own stupidity.
So true, I come to Wirepoints to “hate watch” Illinois. I feel bad for family and friends who are still stuck there, and with home values skyrocketing everywhere but Illinois, there will be no escape.
Nobody is truly *stuck* in Illinois.
Until they put an armed security fence around the entire state every person has the freedom to leave Illinois. They just CHOOSE not too.
Millions have fled Venezuela & Syria with nothing but the clothes on their back. Mind you moving internationally is much harder than moving interstate.
Great analogy. Fleeing a 3rd world country with massive human rights violations is a good proxy for leaving a US state that is fiscally mismanaged.
Leaving a 3rd world country requires another country or organization to sponsor you & transport.
Just ask the Afghan Refugees here.
Leaving a fiscally mismanaged state in America requires you to use your phone & research where you want to move too. Again all the power is in your court.
Or stay in Illinois and suffer in agony. You choice.
Yes, move to a more expensive state at the top of the country’s largest housing bubble, just as IL is about to become significantly less blue.
Ummm Indiana isn’t expensive and in a bubble territory.
2nd Illinois is not going to become significantly less blue. A 2-3% shift to the right won’t change Illinois.
Maybe you’ll get it when Jelly Butt is re-elected this November. Or keep swimming in the pool of Illinois Ignorance and denial.
I thought JB’s giving away $10s of millions in fed covid grants seemingly every day for hiring violence interrupters, covid tracers, community anti systemic fighters, etc with seemingly ZERO oversight? isn’t this solving the unemployment problem???