Unemployment rate in Illinois climbs to 11 percent

Alvin "Chip" Washington of Aurora was let go in October 2007, but he thought buying some single family homes, rehabbing and renting them would help bring in enough income.

It seemed a natural extension of his position at AT&T Inc. as director of property management for company facilities in Illinois and Wisconsin.

"But it just wasn't enough for me to live on, so I decided to find another job," Washington, 60, said Thursday.

For the last four months, he's been looking for a job in the nonprofit or emergency management fields. "I've had a few job leads, but no interviews yet," he said.

Washington is among the growing number of jobless people in Illinois, which just saw its unemployment rate jump to 11 percent in October. That's up 0.5 percent from the previous month and it's the highest level since August 1983, according data issued today by the Illinois Department of Employment Security.

"While the slowing pace of job loss and other leading economic indicators bring with it cautious optimism, they are of little comfort to those seeking meaningful employment during this national recession," IDES Director Maureen O'Donnell said in a statement. "Past economic recoveries suggest the nation will begin to benefit from a growing economy before unemployment rates in Illinois begin to retreat."

The increase in the state's unemployment rate wasn't a surprise to area job counselors, including Amy Webber, executive director of Naperville-based Community Career Center, which provides job resources and training.

"A lot of companies are still freezing their jobs and are afraid to move," Webber said. "But when the banks loosen up, we believe those companies will feel better about hiring again."

Job losses were reported in several industry sectors during October. Employment in the trade and transportation sector dipped by 1,400 positions and the manufacturing sector lost 800 jobs, IDES said.

However, some job sectors reported gains. The educational and health services, professional and business services, and construction sectors each reported slight gains over the previous month, adding 3,600, 1,300 and 1,000 jobs respectively, IDES said.

Nationally, the October unemployment rate increased by 0.4 percent to reach 10.2 percent, the highest rate since April 1983.

The unemployment rate is not the same measurement as those collecting unemployment benefits. The unemployment rate identifies those who are out of work and seeking employment, regardless if they are eligible for unemployment insurance. Workers collecting benefits are counted separately. Therefore, a person who exhausts or is ineligible for unemployment insurance would still be reflected in the unemployment rate if they are seeking employment, the agency said.