In what one analyst called an alarming trend, nearly one-quarter of jobs created in the past year in Illinois were government positions.
Government jobs in Illinois outpaced manufacturing jobs in the most recent jobs report from the Illinois Department of Employment Security.
Government jobs grew more than 14,800 over 12 months. Manufacturing grew by 12,800.
Wirepoints founder Mark Glennon said the growth of manufacturing jobs is good, but even those gains were outpaced by government hiring.
“This imbalance between the growth rates is not healthy,” Glennon said. “If government is growing faster than the private sector, we’ve got a problem.”
He said Illinois’ growth in manufacturing coincides with President Donald Trump’s economic policies designed to improve the country’s manufacturing sector, but in Illinois, the growth of government jobs still outpaces manufacturing growth.
IDES said most of the new government jobs over the past 12 months, most were from local governments. There were 1,400 new state government jobs, but 1,100 fewer federal government jobs.
Across all sectors, Illinois gained 59,300 jobs over the last 12 months in Illinois. Government posts made up a quarter of that.
Glennon said the addition of new tech and communication jobs is great for downtown Chicago, but more rural areas where manufacturing provides a good salary is very important to the state’s overall economy.
“It adds to the payroll costs, which is the largest component of government spending and I don’t see much hope for reduced overall costs of government,” Glennon said.
IDES said local units of government added jobs across the board. While municipalities and park districts hired employees, most of the jobs were at school districts. Glennon said that makes sense.
“I would suspect school districts because we had that big jump in spending on school districts,” Glennon said. “The new school funding formula added $350 million, so that presumably goes largely into payroll.”
Glennon said government growing faster than blue-collar manufacturing jobs is a troubling trend that could lead to more fiscal instability and more burden on taxpayers.
The above story is by Greg Bishop of the Illinois News Network
Unemployment rate increased in most metro areas of state
Unemployment rates increased over-the-year in October in 12 of Illinois’s metropolitan areas and decreased in two, according to preliminary data released Nov. 21 by the U.S. Bureau of Labor Statistics and the Illinois Department of Employment Security. Data also show nonfarm jobs increased in ten of the metropolitan areas.
“The unemployment rate increased over the year in most metro areas across the state,” said IDES Director Jeff Mays. “The increases were mostly due to more people reentering the job market and not immediately securing a job.”
Illinois businesses added jobs in 10 metro areas, with the largest increases in: Kankakee (+5.7 percent, +2,700), the Quad Cities (+2.0 percent, + 3,700), and Lake (+1.8 percent, +7,400). Total nonfarm jobs in the Chicago-Naperville-Arlington Heights Metro Division increased (+0.8 percent or +29,400). Illinois businesses lost jobs in three metro areas: CarbondaleMarion (-0.7 percent, -400), Springfield (-0.4 percent, -400), and Peoria (-0.1 percent, -100). Bloomington was unchanged.
The industry sectors recording job growth in the majority of metro areas included Manufacturing (11 of 14), Professional and Business Services (11 of 14), Transportation, Warehousing and Utilities (9 of 14), Education and Health Services (9 of 14), Mining and Construction (8 of 14), and Wholesale Trade (8 of 14). Not seasonally adjusted data compares October 2018 with October 2017.
The not seasonally adjusted Illinois rate was 4.2 percent in October 2018 and stood at 12.2 percent at its peak in this economic cycle in January 2010.
Nationally, the not seasonally adjusted unemployment rate was 3.5 percent in October 2018 and 10.6 percent in January 2010 at its peak. The unemployment rate identifies those who are out of work and looking for work and is not tied to collecting unemployment insurance benefits.