Illinois unemployment rate rises to 4.9 percent in January as payroll jobs increase

Jeffrey D. Mays | Director of Employment Security
Jeffrey D. Mays | Director of Employment Security
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The Illinois Department of Employment Security announced on Apr. 2 that the state’s unemployment rate rose to 4.9 percent in January, an increase of 0.2 percentage point from December and from the same month last year, based on data from the U.S. Bureau of Labor Statistics. Revised figures show December’s unemployment rate was 4.7 percent.

Total nonfarm payrolls grew by 18,000 jobs in January, marking the largest monthly gain since June 2023 and bringing total employment to just over 6.16 million positions for the month. Sectors with notable job increases included construction, manufacturing, and trade, transportation and utilities; meanwhile, private education and health services saw a decrease along with financial activities and other services.

Deputy Governor Andy Manar said: “January’s strong payroll growth demonstrates Illinois’ economic resilience, with gains in key sectors.” He added: “At the same time, the increase in the unemployment rate reflects ongoing federal uncertainty that is weighing on business investment and hiring decisions. We remain focused on maintaining stability and supporting continued job growth across the state.”

DCEO Director Kristin Richards said: “Investing in our state’s workforce and economic development initiatives are foundational to DCEO’s mission” and added that “The State is committed to creating opportunities for hard working Illinoisans that help us build a strong and sustainable economic ecosystem.” The number of unemployed persons reached about 318,700 for January—a rise of roughly three-and-a-half percent from December—while labor force participation remained nearly unchanged compared to previous months.

According to the official website, the Illinois Department of Employment Security promotes economic stability by assisting unemployed individuals and providing data for policy decisions; it also aims to foster statewide growth through employment services such as job fairs, labor market analysis tools like Illinois JobLink.com—which recently listed over 73,000 available jobs—and administration of unemployment insurance programs.

The agency extends its services throughout Illinois via community partnerships designed to enhance workforce participation according to its official website. IDES operates as a state agency focused on workforce development while offering support resources including labor market information for workers and employers alike.

Looking ahead, officials say they will continue efforts supporting both businesses seeking talent and residents searching for work opportunities across various industries.



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