By: Ted Dabrowski and John Klingner
We’ve warned consistently that Gov. J.B. Pritzker’s inaction on Illinois’ biggest fiscal problems – pensions, property taxes, unbalanced budgets – would eventually come back to bite the state. Sure, he’s used the near-$200 billion in federal Covid bailout money to cover the state’s financial cracks in the short-term, but the governor can’t hide from the reality of his failures on jobs and growth.
At 4.5 percent in September, no other state has a higher unemployment rate than Illinois, according to the latest U.S. Bureau of Labor Statistics release.
Illinoisans have been suffering in one the worst five states for unemployment for several months, but now the state has jumped to the number one position. This is what comes from pursuing policies that drive out companies like Boeing, Citadel, Caterpillar and Tyson.
Gov. Pritzker’s administration is already attempting to spin the data. Below is a quote from today’s press release from IDES:
“Today’s data is a clear indicator that the Illinois labor market continues to remain strong and stable,” said Deputy Governor Andy Manar.
Nothing state officials say can change the fact that Illinois is an extreme laggard both regionally and nationally when it comes to creating jobs.
Nor does it change the fact that Illinoisans are now poised to suffer the most during the next economic downturn. Bloomberg says there’s a 100% probability of a recession within the next 12 months and Illinois’ jobs climate is now the worst-positioned to deal with the impact.
All of Illinois’ neighboring states are in far better shape. Their unemployment rates are significantly below those in Illinois, most notably in Wisconsin, Indiana, Iowa and Missouri, where unemployment is 1 to 2 percentage points lower.
That difference in jobless rates represent a big difference on Illinoisans’ lives. Catching up with states like Missouri would mean 130,000 residents back at work – equivalent to the entire population of Springfield and then some.
Illinois’ worst-in-nation jobs climate was never preordained. With its central location, abundant resources and hard-working residents, it should be leading the nation in jobs and growth.
Illinoisans should blame their current situation on state lawmakers’ many failed policies, from not addressing crime to ignoring the nation’s biggest pension debts to papering over the state’s financial problems to letting public unions dominate state policy to fostering rampant corruption.
Until those policy failures are finally addressed, expect both businesses and Illinoisans to continue to leave for better prospects. Which, as of September, means every other state in the nation.
Read more from Wirepoints:
- Illinois adds most manufacturing jobs nationally in July, but increase does little to recoup the 300,000 manufacturing jobs still missing
- Reality check: Even $200 billion in federal bailouts hasn’t rescued Illinois from the bottom of the barrel
- Illinois’ ‘good times’ are coming to an end as economy, stock market unwind
- Illinois has been bleeding its wealthiest residents for years. Now it’s Ken Griffin’s turn to leave.
Audio and summary 
If this bill passes, say goodbye to local control over all Illinois parks and expect to see open drug and alcohol use, needles, no sanitation and fire hazards, but no ordinary park users.
This is exactly what the Illinois Democrats want, lots of people on unemployment and medicaid, dependent on the state to support them and ready to vote in the incumbents because they are the ones feeding them.
Democrat hellholes are like that.
Financial situation here only going to continue to decline as our minimum wage continues to go up to $15/hr. Our inflation and cost of goods will be exponentially worse than in other states.
$15 an hour is not very much. Only a teabilly would think that’s a lot of money. Stop trying to exploit labor so you can be a cheap ass.
Chicago and other Dem cities/states have been doing it your way for 50+ years, all spectacular failures. How many more trillions will it take, Chicago Man?
the hourly wage gets passed directly on to the consumers via higher prices for goods and services. And that is ON TOP of the current Democrat Inflation caused by your DemoFraud Diaper Full-Of-Dementia in the WH
So lets only pay 50 cents an hour. That way your cheap ass can finally afford stuff. You’re not entitled to free or cheap labor.
I’ll be more generous. $7.25 an hour. Take it or leave it. That’s what illegal labor will work for. You should compete with that, you voted for 5,000,000 more illegal immigrants, so you should enjoy your lower wages too.
Wages are tied to productivity, or haven’t you heard? Employers are getting hit with Brandon’s inflation at the wholesale level and costs for shipping, etc., have also increased. Wages have increased, but with Brandon’s inflation everyone is hurting. Putting small businesses out of business, but even higher wages helps no one. The business owner either has to raise prices to cover his/her costs or fire employees. I think Democrat politicians need to take some economic courses and stop their tit for tat with labor unions. There’s a reason my home state of Missouri and my current state of Florida (both… Read more »
If the job is only worth 50 cents an hour, then all it should be paid is 50 cents an hour.
If you want a better paying job, get better skills.
Simple and effective.
You are the master of your own destiny and not dependant on a FAILED concept like minimum wage which harms everyone.
Listen to RecognizingTruth voters. If Corporate masters have their way they would pay you 50 cents an hour or pay you nothing at all if they could get away with it. This is how corporate masters behave.
Vote YES on amendment 1 to tell these evil people that we will not work for the low wages they offer. Vote YES 4 workers rights. Vote YES for fair working conditions and fair wages.
Tell these corporate masters that you will not be their wage slaves and to get ready to start paying fair wages.
You obviously have no clue how raising the minimum wage affects the lives of low skilled workers. Read some Thomas Sowell to educate yourself on economics.
And you aren’t entitled to high wages for dumb work.
Wages are tied to productivity, or haven’t you heard? Employers are getting hit with Brandon’s inflation at the wholesale level and costs for shipping, etc., have also increased. Wages have increased, but with Brandon’s inflation everyone is hurting. Putting small businesses out of business, but even higher wages helps no one. The business owner either has to raise prices to cover his/her costs or fire employees. I think Democrat politicians need to take some economic courses and stop their tit for tat with labor unions. There’s a reason my home state of Missouri and my current state of Florida (both… Read more »
I live in NJ. $15 an hour to do $8 an hour work only increases inflation and causes employers to eliminate jobs. Low skilled workers suffer the most when wages move out of their reach. After school teenagers’ jobs, entry level jobs and those extra help jobs will no longer exist as businesses transfer the extra workload on remaining employees. I personally had to ‘let go of’ a nice 16 year old girl from my salon because I couldn’t afford to keep her. Her job was to assist my staff and sweep up hair. My staff will now get their… Read more »
Great “boots on the ground” explanation. People who want to keep raising the minimum wage have not been educated in economics and how businesses actually run.
You definitely do not understand basic math or basic economics. By setting ANY “minimum wage” government forces businesses to LIMIT the number of employees they can afford to hire (and fire ones they already have when the minimum wage increases) and INCREASE the price of the goods they sell. This means that while SOME people get a higher wage, SOME get no wage at all, but EVERYONE pays more, so the “minimum wage” is negated even for the ones that got it. A lose-lose-lose scenario. Wages based solely on importance of the job, employee availability, required skill, and actual performance… Read more »
15$ an hour is too much for entry level service jobs. Nobody is going to buy a value meal that costs $10.
I gotta ask, what is a teabilly?
I grew up on the west side of Chicago (Grand and Western). Left Illinois during my twenties back in the mid-90s, due to taxes and too many minority parasites. Moved to Florida, built a business employing more than 500 people. Good upper-middle jobs with great benes. Would never even bother trying to do so in Illinois because of taxes. Sold it and retired in my 40s. Dem states like Illinois take ~10% income tax, but the schools/roads/homeless/etc are no better. All that confiscated tax money just goes *poof* into thin air. My family still lives in Chicago, but I haven’t… Read more »
Income tax is 4.95%. Florida man too dumb to know the tax rate. Try using google Florida man.
You made so much money that you retired in your forties and haven’t seen your family in 10 years. You sound like a rotten person. Glad you don’t live in Illinois.
>Try using google Florida man.
Literal first link on Google – your effective total state and local tax rate in Illinois is over 15%, Chicago Man.
https://www.illinoispolicy.org/illinois-tax-rates-rank-no-1-highest-in-u-s/
In Florida I have 0% state income tax, 0% county/city income tax, low property taxes, no tax on food/medical etc etc.
We don’t have a ~10% income tax like you said. You are full of shit. More lies from Florida man.
Twitter down, groomer?
Your own family won’t even let you visit. You’re a horrible person and your own family knows it. Complete loser. Yuuuuge Loser.
Kyle – you don’t know this guy and have no idea whether he is a loser. Besides, ad hominem and angry assertions don’t let people know of your analytic ability. Let’s stick to facts. Florida does not have an income tax, but does have on a relative basis high property taxes. Such taxes are not as high as those in Illinois, however, with Illinois residents having along with New Jersey the highest property tax burden. My step sister is a Director in state government in Florida. She lives in a very nice house in Tallahassee. She has modest pension benefits,… Read more »
4.95% to run a small business in IL? Highly doubt that.
p.s. You could take that 10% in state/local taxes taken from you and your spouse, and build a nice 401k for your own retirements, instead of working into your old age to fund exorbitant retirements for city workers who retired young (with many of them immediately leaving Illinois for low tax states) How dumb do you have to be to keep falling for this same old tax and spend song and dance your Illinois politicians do every couple years? They do the exact same song and dance since I was a kid, 50+ years ago. And you vote for them… Read more »
Take a look at the demographics. That, and IL hands out guara teed income.
Any wonder why their unemployment is highest in the Nation?
Left Chicago and Illinois for good April 2022.
Good luck to those that remain.
Good for you. Not everyone can handle living in the big city of Chicago or states like Illinois. Maybe the slower speed of Indiana or some other teabilly area will help you become successful. Small people do better in small towns.
All I know is that we should keep voting Democrat because they’re doing such a great job we can’t let those Republicans in
of course they do, they have democrat radicals in charge
Pritzker is a failed Gov. IL is a failed state. Let’s see how many in IL wish to continue the failure.
pritzker lost his daddy madigan. He was only suppose to be the face,not to actually govern. That trust fund baby is in way over his mental capacity.
Pritzker will win again. The people of Illinois support him and not the weird farmer. Illinois doesn’t want to become another teabillistan.
Sick state of Illinois. Despite all our resources, we are at the bottom in almost every metric compared to the other 50 states. Worst and most corrupt politcians in the country. One way or another, including if the state has to collapse in chaos….it will get fixed.
Why work when Illinois has that guaranteed annual income?
No worries, Amendment 1 is going to fix all the unemployment and create a workers paradise……at least for are public sec heros
Vote 4 workers rights. They deserve fair pay and safe working conditions. Support police and nurses. Vote yes for Amendment 1.
Isn’t that what the unions already do? Clueless. Read the amendment. Red flag when it can never be changed either. Wake up.
You sound like a useful idiot you’re advocating for something that’s going to exaggerate the problem are you this obtuse
Yeah, that hardhat ad with the crane operator always gets me belly laughing!!! Talk about a fantasy!
Pritzker is not only a terrible governor, he continues to lie about the deficits, the debt, and the fact he has no plan to solve any of these problems. The Illinois Policy Institute posted a study that in 2021, one person left Illinois every four minutes and 18 seconds. Illinois is doomed unless these policies are reversed. Illinois loses 113,776 people in 2021 as those moving out accelerates | Illinois Policy
First, the tax base is shrinking, and there is no action being taken to reverse that trend. Second, while I don’t have any data, I suspect those leaving Illinois, in general, are more conservative than those remaining. Third, younger/new voters tend to be liberal, and older/conservative voters become ever fewer due to death. These three things indicate of future of ever higher taxes and continued Democrat dominance. Democrat dominance means continued public union loyalty, which means continued horrible public education. Democrat dominance means continued high crime. Democrat dominance means increased regulation imposed on Business, which leads to loss of Business,… Read more »
The tax base will continue to shrink as the population ages and Illinois continues to not tax retirement income. Retirees are the fastest growing segment in the state but don’t pay income tax.
There was a study a few years ago that showed the retirees move to lower tax states such as Florida because taxes are too high in Illinois. But why work when you can get a UBI check?
Another good point. I suspect that will change some day, and retirement income will be taxed before Illinois considers lowering public pensions.
“I suspect that will change some day, and retirement income will be taxed before Illinois considers lowering public pensions.” As it should. Illinois doesn’t have the option to lower pensions instead of raising taxes. Increased income taxes, possible progressive income taxes, service taxes, retirement income taxes, real estate transfer taxes. Many taxes to be implemented well before any cuts to pensions. “Moreover, no possible claim can be made that no less drastic measures were available when balancing pension obligations with other State expenditures became problematic. One alternative, identified at the hearing on Public Act 98-599, would have been to adopt… Read more »
Until they aren’t. Meanwhile I suggest that you keep your skills up to date and consider a side hustle while you’ve still got time.
I’m good joey. A couple of pensions at 250k+ per year. In 15 years those pensions will be worth 400k per year. Not to mention the 7 figure savings and paid off house and second residence. All is good joey.
Maybe some day the state will cut the pension similar to Detroit. 5.5% cut will leave me struggling to get by on 380k per year. I’ll try to manage but it could be rough. lol
That’s all old law. It’s like a decade old. In legal terms, pension protection case is gonna age like Justice Oliver Wendell Holmes raving “Three generations of Imbeciles is enough!”
A new right IL supreme court is gonna start a slashin’ and a hackin’ and a a sawin’ at them pensions…
Sure they will debtsor. Sure they will.
Bailey is going to win. Illinois legislature will cut pensions. The Illinois Supreme Court will become majority GOP and overturn pension protections against the clear words of the constitution while also voting to give up their own pension. You’re funny.
Keep dreaming debtsor. It’s all you have.
I tend to agree with PPF. Illinois will tax everything in sight before they finally take a look at public pensions. I don’t think the Dems care if each year another 1% of the population leaves. As long as those that stay keep voting for them, they are happy.
It’s the 8th Wonder of the World that pension income isn’t taxed right now in Illinois like they do in Michigan.
Perhaps it’s only a downturn away….
I’m also surprised Joe. If I were to guess, it’s because seniors as a group are organized, and turn out to vote in higher numbers.
Illinois is a failed state.
Even if they slash pensions to the bone, your politicians will just waste the money on something else, instead of smartly confiscating less money from the people who work.
You’ve been taxed at some of the highest rates in the country for decades, and the slide just continues.
There isn’t enough money in the universe to fix Chicago public schools, much less the city itself. You don’t have a revenue problem. You have a spending and minority parasite problem.
Duh.
No I don’t believe 1099R income will be taxed in IL simply because it was taxed by Illinois as it was earned and was reported as W2 income. Study the Federal Government’s Transition from Civil Service Pension to FERS and it is a blue print for solving the untenable mess we now have.
we don’t pay income tax on RETIREMENT accounts, what makes you think we don’t pay IL income tax? Ignorant statement, you apparently don’t live in IL.