Unemployment Rate Down, Payroll Jobs Up in Illinois During January

The Illinois Department of Employment Security (IDES) says that the unemployment rate fell -0.1 percentage point to 5.0 percent, while nonfarm payrolls increased by +8,600 in January, based on preliminary data provided by the U.S. Bureau of Labor Statistics (BLS) and released by IDES. The preliminary report for December monthly payrolls was revised from +22,800 to +18,200 jobs. The preliminary December unemployment rate was revised from 5.3 percent to 5.1 percent. The January payroll jobs estimate and unemployment rate reflects activity for the week including the 12th.

In January, the three industry sectors with the largest over-the-month gains in employment were: Professional and Business Services (+11,100), Manufacturing (+3,200), and Government (+1,500). The industry sectors that reported monthly payroll declines were: Construction (-7,100), and Leisure and Hospitality (-1,600).

In January, the Illinois’ labor force participation rate, or the percentage of the working-age population that’s either employed or unemployed and seeking employment, was 1.5 percentage points higher than the U.S. labor force participation rate and is rising faster than in the US. That means more people are joining the workforce in Illinois than across the US. Over the previous year, the Illinois labor force participation rate increased by nearly twice the level of the national labor force participation rate, rising +1.4 percentage points, as compared to +0.8 percentage point in the nation.

The state’s unemployment rate was +1.0 percentage points higher than the national unemployment rate reported for January, which was 4.0 percent, up +0.1 percentage point from the previous month. The Illinois unemployment rate was down -2.1 percentage points from a year ago when it was at 7.1 percent.

Compared to a year ago, nonfarm payroll employment increased by +256,100 jobs, with gains across all major industries. The industry groups with the largest jobs increases were: Leisure and Hospitality (+122,300), Professional and Business Services (+50,600), and Trade, Transportation and Utilities (+28,000). In January, total nonfarm payrolls were up +4.5 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 -2.1 percent decrease to 317,600, and was down -28.5 percent over the same month for one year ago. The labor force was up +0.6 percent over-the-month and up +1.7 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.