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ILLINOIS FEBRUARY UNEMPLOYMENT

4/14/25

Illinois’ February unemployment rate of 4.8% was fifth highest in the US in February, behind only California, Nevada, Michigan and Kentucky.

That unemployment rate translated into 321,000 Illinoisans looking for work, according to the US Bureau of Labor Statistics.  Illinois’ 4.8% unemployment rate continued to exceed the national average of 4.1% in February.

Illinois saw a job growth of 19,100 during the past year, compared to February 2024.  The growth rate for Illinois was only 0.31%, which ranked the state 42nd in the nation.  This lagged significantly behind the US average of 1.21% in that same timespan.

The state’s labor market shows signs of tightening competition for available positions.  Illinois had 277,000 job openings in January 2025, creating an unemployed-to-job-opening ratio of 1.2.  This means roughly 1.2 unemployed workers are competing for each available job, ranking Illinois 2nd highest among neighboring states and 5th highest nationally for this metric.

Illinois saw the highest growth rates in local government, adding 15,000 jobs.  Other sectors with strong growth rates were private education and health services with 20,700 new jobs and information with 1,200 new jobs.  The professional and business sector saw the largest net decline during the 12-month period, reporting 13,900 fewer positions.  The manufacturing sector lost 7,300 positions and the wholesale trade sector also saw a decline of 5,900 jobs.

The primary culprit in Illinois’ slow economic growth and high unemployment is a unfriendly business environment because of high taxes resulting from a constantly mismanaged budget.

Illinois’ state and local tax burden is the highest in the Midwest.  The state also levies the second-highest state corporate income tax in the nation and the state’s tax code is among the least friendly for businesses in the Midwest.

Despite this, the state continues to overspend by adding $15 billion to its general funds budget since 2019.  Illinois continues to foster an environment that makes it harder for Illinoisans to find work and reduces wage growth prospects for those who are employed.