Illinois unemployment drops to 11.3 percent

State adds almost 100,000 jobs, led by leisure-hospitality industry

A Chicago restaurant courts customers on the sidewalk, a sign of the revival in the leisure and hospitality industry. (One Illinois/Ted Cox)

A Chicago restaurant courts customers on the sidewalk, a sign of the revival in the leisure and hospitality industry. (One Illinois/Ted Cox)

By Ted Cox

Illinois continued to chase the national unemployment rate down in July, as the state rate dropped to 11.3 percent, just 1.1 percentage points higher than the U.S. figure.

The Illinois Department of Employment Security released the data Thursday, finding that the state added 93,000 nonfarm payroll positions in July. That was down from a record increase of 142,000 jobs in June, but still reflected a robust recovery, led by the leisure and hospitality industry, followed by education and health services and professional and business services.

The latest figures actually revised the June rate down a notch to 14.5 percent, but for that month the U.S. rate was 11.1 percent, so the state closed the gap considerably in July with a drop of 3.2 percentage points.

“While we’re happy to see the unemployment rate and payrolls moving in the right direction, IDES remains committed to serving our claimants’ needs during this continued unprecedented time,” said Acting Director Kristin Richards in a statement. “As we move through this period of uncertainty, the department is working as vigilantly as possible to rise to the challenge and provide benefits and employment services to those who need them.”

The latest national unemployment figures released Thursday by the U.S. Department of Labor found that new claims filed with IDES continued to decline, even as weekly filings rose back above 1 million across the nation.

“While data from July demonstrate continued progress in the face of extraordinarily challenging economic times, it’s clear the pandemic is continuing to have an unprecedented effect on our economy,” said Michael Negron, acting director of the Department of Commerce and Economic Opportunity. “Evidence from other states has shown that ensuring public health is the quickest way to an economic recovery.

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“Ensuring public health is the quickest way to an economic recovery.”

Michael Negron, acting DCEO director (Illinois.gov)

“With that in mind, DCEO remains committed to investments that will support Illinois businesses and residents facing the most acute effects of this crisis,” he added, “while making continued progress under Gov. Pritzker’s Restore Illinois plan to safely reopen our state economy.”

Year to year, the state unemployment rate was up 7.4 percentage points from 3.9 percent in July 2019, reflecting a loss of more than 500,000 jobs, “with losses across all major industries,” according to IDES. Even so, the state was showing a marked recovery, with the number of unemployed workers statewide falling by a quarter month to month to just over 700,000.