Unemployment rate in Illinois sees small increase in June

SPRINGFIELD – The Illinois Department of Employment Security announced Wednesday that the unemployment rate rose one-tenth of a percentage point to 7.2 percent, while non-farm jobs increased 12,500 in June, based on preliminary data provided by the U.S. Bureau of Labor Statistics.

The May monthly change in payrolls was revised from the preliminary report, from minus 7,900 to plus 4,300 jobs. The May preliminary unemployment rate was unchanged from the preliminary report, remaining at 7.1 percent.

The June payroll jobs estimate and unemployment rate reflects activity for the week, including the 12th.

The three industry sectors with the largest over-the-month gains in employment in June were leisure and hospitality (up 10,700), trade, transportation and utilities (up 3,400) and construction (up 2,100). The industry sectors reporting the largest monthly payroll declines were professional and business services (down 3,700), manufacturing (down 2,500) and information (down 200). 

“With the state fully reopening last month, today’s data is promising and indicative of the larger national recovery process from the economic impacts of a year-plus-long pandemic,” senior advisor Andy Manar said. “IDES continues to support claimants while providing tools and resources to jobseekers who are eager to reengage with the workforce as industries grow and more jobs become available.”

“Through Gov. Pritzker’s Restore Illinois plan, we have laid the groundwork for a long-term economic recovery by fostering conditions that are safe for residents to commute, access childcare and return to work,” Department of Commerce and Economic Opportunity Acting Director Sylvia Garcia said. “While Illinois has seen incredible progress in restoring jobs and businesses over the past several months, we know that additional economic relief will be essential as we seek to build back stronger from the pandemic. In the coming weeks, the state will begin deploying additional funds made possible by ARPA as part of our ongoing efforts to reach the hardest-hit small businesses and communities with economic assistance.”

The state’s unemployment rate was 1.3 percentage points higher than the national unemployment rate reported for June, which was 5.9 percent, up one-tenth of a percentage point from the previous month. The Illinois unemployment rate was down seven percentage points from a year ago when it was at 14.2 percent.

Compared to a year ago, nonfarm payroll employment increased by +310,100 jobs, with gains across most major industries. The industry groups with the largest jobs increases were leisure and hospitality (up 118,900), trade, transportation and utilities (up 61,600) and professional and business services (up 47,500).  The industry groups with jobs losses were manufacturing (down 6,500), mining (down 200) and financial activities (down 100). Total nonfarm payrolls in June were up 5.7 percent over-the-year in both Illinois and the nation.

The number of unemployed workers was up from the prior month, a 1.4 percent increase to 443,500, and was down 50.9 percent over the same month for the prior year. The labor force was up four-tenths of a percent over-the-month and was down 2.7 percent over-the-year. The unemployment rate identifies those people out of work and seeking employment. An person who exhausts or is ineligible for benefits is still reflected in the unemployment rate if they actively seek work.