The Illinois Department of Employment Security (IDES) reported Thursday that the state’s unemployment rate climbed to 4.9 percent in January, up 0.2 percentage point from both December and the same month last year, according to data from the U.S. Bureau of Labor Statistics (BLS). The revised unemployment rate for December stood at 4.7 percent.
Despite the uptick in unemployment, Illinois saw a notable increase in total nonfarm payrolls, which rose by 18,000 jobs (+0.3%) in January to reach 6,166,800—the largest monthly increase since June 2023. The December payroll change was revised slightly downward from the preliminary estimate, moving from +11,800 to +11,600.
Leading the way in job gains were the Construction sector (+13,500), Manufacturing (+8,400), and Trade, Transportation and Utilities (+1,800). Meanwhile, the sectors that shed the most jobs included Private Education and Health Services (-3,500), Financial Activities (-800), and Other Services (-700).
Over the year, Illinois added 7,900 nonfarm payroll jobs. The biggest increases were seen in Private Education and Health Services (+18,300), Construction (+14,000), and Government (+2,900). The largest job losses occurred in Professional and Business Services (-12,300), Trade, Transportation and Utilities (-10,000), and Leisure and Hospitality (-3,300). Year-over-year, nonfarm payrolls in Illinois increased by 0.1 percent, compared to a 0.2 percent rise nationwide.
In January, the number of unemployed Illinoisans rose to 318,700, a 3.5 percent increase from December and a 1.3 percent rise from January 2023. The state’s labor force held steady from December but declined by 1.2 percent over the year.
IDES emphasized that the unemployment rate accounts for individuals actively seeking employment, including those who have exhausted or are ineligible for benefits but continue to look for work.