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Staffing companies eliminates jobs in Chicago

Posted on January 15, 2012

Before Christmas a Milwaukee-based temporary staffing called Parallel Employment said it would be cutting several jobs in Chicago.

The company has laid off nearly 500 employees in Illinois and said it was due to the high cost of the state’s workers’ compensation system.

According to statistics provided in the 2010 annual report of the Illinois Workers’ Compensation Commission, Illinois is one of the most expensive states for workers’ compensation insurance and medical costs.

Kirk La Du, executive vice president of operations, told the Chicago Tribune, “The only reason we are downsizing is competitive issues related to workers’ compensation. It seems foolish to us to continue operating in a state where workers’ comp made it difficult to make money.”

Parallel Employment provides labor assistance and job seekers to clients involved in light manufacturing and packaging. The company has closed branches in Chicago, Wheeling, Elgin and Crystal Lake