Unemployment reached 10.1 percent in May in Illinois -- an increase of 0.7 percent over April, according to data released Thursday by the Illinois Department of Employment Security.

Unemployment in Illinois and nationwide has reached 25-year highs.

Total non-farm payroll in Illinois declined by 17,400 jobs in May. Although the pace of job loss lessened compared to the previous six months, Illinois recorded its eighth consecutive month of job losses. The number of unemployed people reached 671,400, the highest since June 1983.

"This national recession has produced unemployment figures not seen in a generation. The next phase likely will include a slowdown in job loss coupled with further increases in the unemployment rate," IDES Director Maureen O'Donnell said in a statement. "As the economy continues to seek its own level, we continue to encourage claimants to certify for benefits and sign up for direct deposit at our website, ides.state.il.us."

The Manufacturing sector lost 9,500 workers in May, and has suffered the largest job loss of any sector in four of the last five months. Job loss leaders also include Trade, Transportation and Utilities as well as the construction sector. With summer approaching, job growth was reported in the Leisure and Hospitality sector.

Nationally, the May unemployment rate climbed to its highest level in more than 25 years to reach 9.4 percent and the total number of unemployed workers reached 14.5 million. The nation's total payroll fell for the 17th consecutive month in May (down 345,000), bringing total national job losses to 6.0 million since the onset of the recession in December 2007. The Manufacturing and Construction sectors continue to dominate the national employment decline during the recession, dropping by 1.8 million and-1.2 million, respectively. Illinois has lost 290,800 jobs since the onset of the recession.