Manufacturing jobs reverse June gains, continue downward trend
Illinois gained 1,900 payroll jobs in the month of July, according to Thursday’s economic release from the Illinois Department of Employment Security. The jobs growth was driven by gains in government employment.
The increase in payroll jobs was led by a gain of 2,600 government jobs, according to the Bureau of Labor Statistics’, or BLS, business establishment survey.
Several other industrial sectors reported gains, including: leisure and hospitality (+2,400); construction (+2,000); financial activities (+1,200); trade, transportation and utilities (+300); and other services (+100). Unusually heavy job losses occurred in professional and business services (-5,300); and other losses came from manufacturing (-600); education and health services (-600); information (-100) and mining (-100).
Illinois lost manufacturing jobs for six out of the first seven months of 2015; June was the only month in which Illinois gained manufacturing jobs.
Illinois’ unemployment rate fell to 5.8 percent from 5.9 percent as the workforce shrank by 1,800 workers, according to the BLS household survey.
Specifically, unemployment dropped by 8,900 while employment rose by 6,900, indicating that the decline in the July unemployment rate was due both to some unemployed workers finding employment as well as to other unemployed workers dropping out of the workforce.
In the month of July, six major Illinois manufacturers announced that they were either completely or partially shutting down operations and laying off workers, or leaving the state. Forklift manufacturer Hoist Liftruck announced that the company planned to move across the border, from Bedford Park to East Chicago, Indiana.
Even though layoffs announced in July will take place in future months, the jobs report shows that Illinois lost 600 more manufacturing jobs in July. With the June manufacturing gain revised up to 1,100, the state is down 7,400 manufacturing jobs through the first seven months of 2015.
The state has seen a total increase in payroll jobs of 17,000 through July, according to the BLS’ business establishment survey, and the growth in the number of people working has been 1,100 for the first seven months of the year, according to the BLS’ household survey.
The business establishment survey revealed heavy losses in the state’s manufacturing sector, with factory jobs down 7,400 for 2015. The household survey also showed that the workforce has shrunk by 27,000.