Job creation in Illinois underperforms the national economy
The latest available state-level employment data from the U.S. Bureau of Labor Statistics (BLS) is for August 2025 (seasonally adjusted nonfarm payrolls). Over the past 12 months (August 2024 to August 2025), Illinois saw a 0.1% increase in employment, adding about 5,900 jobs for a total of approximately 6.15 million jobs. This ranks Illinois 45th out of 50 states for job growth percentage. The national 12-month job growth rate was about 0.9% over the same period.
Overall Job Growth: From 2000 to 2025, total IL nonfarm employment grew by about 173,000 jobs (2.9%), with private sector contributing the majority of gains. Illinois has underperformed the national average due to population out-migration and fiscal issues, but recent years show improvement from infrastructure investments and business relocations.
Per Grok
Job Growth is vital to well-being and security of IL Families
Job Growth in the private sector in IL is barely measurable, out of step with the national economy. All of the states in the upper midwest exceeded IL job creation. Per BLS reports, the nation added 9 Million jobs during this time period.
Is growing government jobs the best that IL can do?
One example of the IL job market is recent hiring of public sector employees versus the private sector. It’s the private sector workers who pay most of the taxes to pay for government job growth. Growing government jobs while shrinking private sector jobs is not sustainable. It can only lead to more demands for more taxes, such as a current proposal for a $2 billion statewide tax increase through expansion of the sales tax for services.
Can IL families prosper without robust job gorwth?
Illinois saw a job growth of 21,200 during the past year, compared to May 2024. The growth rate for Illinois was only 0.35%, which ranked the state 44th in the nation.
The unemployment rate as of July, 2025, for IL is 4.8%, or one of five states with high rates of people out of work. The national unemployment rate is 4.2%.
Consider: For the past decade, IL underperforms for job creation versus almost all other states, and has a higher than average unemployment rate now.
Wage growth in IL moves in tandem with slow job growth
IL wage growth lags the nation, ranking in seventh place versus the US economy over the past five years. All while being the fifth largest economy in the country.
Unemployment rate of the IL Black community exceeds national average
As of 2025, IL has the highest Black Unemployment rate among the ten largest states, standing at 9.6%. Data provided by Economic Policy Institute. The national average is 7.5%, per St. Louis Fed.
Unemployment rate for Hispanic community exceeds national average
As of 2025, IL has the highest Hispanic Unemployment rate, one of six states and Washington DC, standing at 7.1%. Data provided by Economic Policy Institute. The national average is 5.0%, per St. Louis Fed.
IL has the fifth largest GDP in the US, surpassed only by CA, TX, NY and FL. For job growth in IL, the state ranks 44th out of fifty states. If IL had a manageable level of taxation, IL would likely rank in the top ten states for growth.
The only explanation for ranking in the bottom ten states for job growth is taxes. IL tax levels drain the private sector of much needed, vital funds to support a thriving, prosperous state economy. The economy of the IL is running in place, maintaining, not growing or expanding. With a static economy, IL tax policies are eroding the ability of the private sector to fund both the constant needs of government and generate sufficient after tax dollars to support the private sector. IL needs smaller, more affordable government.