Some Good News For Local Economy: Unemployment Rate Declines in November

Some Good News For Local Economy: Unemployment Rate Declines in November

The Illinois Department of Employment Security announced today (Thursday, Sec. 17, 2020) that the unemployment rate fell 0.5 percentage point to 6.9% in November.

That number is based on preliminary data provided by the U.S. Bureau of Labor Statistics and released by IDES. 

The October unemployment rate was revised upward from the preliminary report, from 6.8% to 7.4%.

The November payroll jobs estimate and unemployment rate reflects activity for the week including the 12th. The BLS has published FAQs for the November payroll jobs and the unemployment rate.

The state’s unemployment rate was 0.2 percentage point higher than the national unemployment rate reported for November, which was 6.7%t, down 0.2 percentage point from the previous month. The Illinois unemployment rate was up 3.2 percentage points from a year ago when it was 3.7%.

In November, the three industry sectors with the largest over-the-month gains in employment were: Trade, Transportation and Utilities (+6,500), Professional and Business Services (+5,300) and Construction (+2,300).

The industry sectors that reported the largest payroll declines were: Leisure and Hospitality (-27,400), Manufacturing (-2,900) and Educational and Health Services (-2,000). 

“With critical federal programs set to expire after the week ending Dec. 26, IDES is working quickly to inform claimants about these impending changes,” said Deputy Gov. Dan Hynes. “The department and the Pritzker administration are advocating for continuity at the federal level to support claimants, as we work towards a full recovery from the pandemic’s economic impact on Illinois workers.”

Erin Guthrie, director of the Department of Commerce and Economic Opportunity, said the latest unemployment data continue to show the significant challenges COVID-19 places upon workers and businesses throughout our state.

“We are resolute in our commitment to overcoming the virus, and helping get the economy back on track,” she said.

Compared to a year ago, nonfarm payroll employment decreased by 412,600 jobs, with losses across all major industries. The industry groups with the largest jobs decreases were: Leisure and Hospitality (-153,900), Educational and Health Services (-57,100) and Government (-51,200).

Illinois nonfarm payrolls were down 6.8% over-the-year as compared to the nation’s 6.1% over-the-year decline in November.

The number of unemployed workers decreased from the prior month, an 8.7% decline to 425,900 but was up 80.8% over the same month for the prior year.

The labor force was down 2.4%  over-the-month and down 4.6% over-the-year.

The unemployment rate identifies those individuals who are out of work and seeking employment. An individual who exhausts or is ineligible for benefits is still reflected in the unemployment rate if they actively seek work.

SOURCE: Illinois Department of Employment Security news release