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Chicago Unemployment Rate Increases

Posted on March 16, 2010

The Chicago unemployment rate in the metropolitan area jumped to 11.6 percent in January from 10.6 percent a month earlier and 8.4 percent in January 2009, the Illinois Department of Employment Security reported today.

The area shed 149,900 jobs over the year.

The city has done everything it can to boost Chicago jobs.

Unemployment rates, all not seasonally adjusted, were above previous-year levels in all 12 metropolitan areas for the 32nd straight month.

The agency said the state rate climbed to 12.2 percent, exceeding the 10.6 percent rate nationally.

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Payroll jobs decreased in 11 of 12 metropolitan areas over the year. The only area to gain jobs was Kankakee-Bradley, which added 200 jobs.

“Although this preliminary data is subject to revision, there can be no doubt that the national recession continues to pressure job markets in communities throughout our state,” IDES Director Maureen O’Donnell said.

“Economic downturns of this magnitude most likely will show job growth on a national level before sustained positive progress is evident here at home.”

The highest unemployment rates were in Rockford at 19.7 percent, Kankakee-Bradley at 16 percent and Danville at 15 percent.

The lowest unemployment rates were in Bloomington-Normal at 6.2 percent, Springfield at 6.8 percent and Champaign-Urbana and Davenport-Moline-Rock Island at 7.1 percent.

Total payroll jobs decreased over the year in 11 of the 12 metro areas. The largest percentage decreases in jobs were reported in Peoria (6.5 percent, 11,900), Decatur (5.9 percent, 3,200) and Rockford (5.9 percent, 8,600).

The January unemployment rate, not seasonally adjusted, was 12.2 percent in Illinois and 10.6 percent for the nation. The unemployment rate identifies those who are out of work and looking for a job regardless if they are eligible for unemployment insurance. A person not collecting unemployment benefits still will be reflected in the unemployment rate if they continue to look for work.

Greg Rivara is a spokesman with the Illinois Department of Employment Security.

Rivara said here might be reason for optimism, but we really need to get a couple of months’ more data that we can take a look at to have a better idea of where we are in this economic recovery.

The regional and state unemployment rates haven’t been this high since 1983.

All told, the region lost nearly 150-thousand jobs since January of last year.