Illinois' jobless numbers highest in 15 years, but could be worse

Illinois wasn't as high as other states that reported double digit job losses during January, but it still hit depressing levels.

The unemployment rate in Illinois during January was 7.9 percent - the highest since April 1993. Illinois also reached its highest level for the number of unemployed - 518,600 - since November 1985, according to a report released Wednesday by the Illinois Department of Employment Security.

For the first time in seven years, the Illinois economy in January recorded its 12th consecutive month of job loss, dropping 29,300 jobs. Over the year, Illinois employers have reduced payrolls by 175,100 jobs.

"Illinois has the fifth-largest economy in the nation and it's one of the reasons that Illinois historically has exceeded the national average," said IDES spokesman Greg Rivara.

Nationally, the unemployment rate was 7.6 percent, a 16-year high, also during January.

At least Illinois followed such states as California, South Carolina, Michigan and Rhode Island, which all posted double-digit job losses of more than 10 percent.

In Illinois, payroll employment in January fell for the 13th consecutive month, dropping 655,000 jobs and bringing total national job losses to 3.7 million since December 2007.

One of the hardest-hit sectors here was manufacturing, which lost 10,800 workers in January, its largest over-the-month reduction since July 2001.

Such numbers aren't a surprise, said Mary Rose Hennessy, executive director of Illinois Business and Industry Services, University of Illinois Extension in Naperville.

"However, I am starting to hear from companies that they are seeing an increase in orders after they laid off an entire shift and now need to hire them back," Hennessy said. "Most smart business people know that talented employees are difficult to find and they look for ways to retain their people. They will be well positioned with trained and loyal workers when this gloom lifts, as it surely will."