Illinois continues to deal with high unemployment, ranking third highest in the nation in December, with a jobless rate of 5.2%. This translates to roughly 340,000 Illinois residents seeking employment, as recorded by the U.S. Bureau of Labor Statistics. The only two states with higher unemployment rates were California and Nevada, compared to the national average of 4.1%.

Though Illinois added 56,000 jobs during 2024, the growth rate lags behind the national average and that of neighboring states. Illinois recorded a growth rate of 0.92%, while the national growth rate was 1.42%, with 2.2 million jobs available. The state saw significant job growth in the government sector, private education and health services, and ‘other’ sectors while experiencing a decline in the professional and business sector, manufacturing, and finance.

Illinois saw slight gains in 6 out of 11 industries, not including the government sector. However, the state’s job recovery rate following the pandemic has been notably slow, placing it at 46th in the country. The primary factors contributing to Illinois’ slow economic growth and high unemployment rates are widely believed to be its unfriendly business environment owing to high taxes and an inefficient government pension system.

Illinois’ high state and local tax burdens, one of the highest in the Midwest, along with the second-highest state corporate income tax in the country, have been driving factors for many skilled workers leaving the state. This, combined with recent income tax hikes that have made housing less affordable in Illinois and reduced returns on housing investments relative to other states, has placed a strain on the state’s economy.

To improve, the state must focus on bolstering its fiscal position, reducing regulatory burdens, and offering genuine tax relief to both workers struggling to stay and businesses striving to continue operations in the state.

For those currently grappling with unemployment in Illinois, it could be helpful to connect with California’s EDD or Employment Development Department as a resource. The EDD provides a wide range of services to job seekers and employers, helping match potential employees with suitable roles. The EDD also provides unemployment benefits, while their team can help advise those unsure of their next steps. To connect with the EDD, one can visit eddcaller.com for assistance on how to get a hold of EDD. This could be a useful resource for those facing unemployment in the state.