I L L INO I S E C O NOM IC
R E V I EW
The Monthly Illinois Economic Review contains information on national, statewide, and local economic
performance by measuring job growth, unemployment, and business activity. This information is compiled by
IGPA Economist Geoffrey Hewings, director of the Regional Economics Applications Laboratory at the
University of Illinois at Urbana-Champaign with assistance from Yizhou Zhang and Kijin Kim.
MAY 2015
EMPLOYMENT
E MP LOY ME N T DA TA S UM M A RY








Illinois added 4,800 jobs in April 2015, compared with a 2,200 job loss in March 2015. Compared to
April 2014, Illinois has added 62,900 jobs. The three-month moving average, a more stable measure
of the labor market, showed an increase of 5,800 jobs per month.
The Nation added 223,000 jobs at a rate of 0.16%, compared with an 85,000 job gain in March 2015.
The three-month moving average was up by 574,000 jobs per month.
The RMW gained 17,500 jobs in April after a 1,900 job gain in March 2015. The three-month moving
average was up by 19,000 jobs per month.
Since the beginning of the recession in December 2007, Illinois has posted positive job gains 47
times and negative job changes 40 times. The state of Illinois now has a net loss of 68,200 jobs since
the beginning of the recession in December 2007.
Since January 2010, when Illinois employment growth resumed after the national recession, Illinois
has added 334,800 new jobs.
By April 2015 in Illinois, Professional & business services and Leisure & hospitality have both
recovered to their previous employment peak levels. The 12-month-ahead job recovery forecasts
show that the future recovery rates in Illinois will increase for every sector except Manufacturing,
Information and Financial Services.
The shadow unemployment rates for Illinois, RMW and the Nation were 10.94%, 11.05% and
10.93%, compared to official unemployment rates of 6.0%, 5.1% and 5.4%.
Through April 2015, the cumulative job growth for Illinois, RMW and the Nation compared to
January 1990 stood at 12.36%, 16.39%, and 29.52%, respectively.
APRIL 2015
E MP LOY ME N T C HA RT
May
Total NonFarm
Employment
Growth
Rate %
2015
Nation
0.16
223,000
2.15
2,982,000
10.93%
Positive
RMW*
0.09
17,500
1.65
323,500
11.05%
Illinois
0.08
4,800
1.07
62,900
10.94%
Mar 2015– Apr 2015
Number of
Jobs
Last 12 months
Growth
Rate %
Number of
Jobs
Apr 2015
Shadow
U.R. **
*RMW stands for Rest of the Midwest including six states, Indiana, Iowa, Michigan, Missouri, Ohio and Wisconsin.
**REAL has estimated a shadow unemployment rate; this is calculated as the unemployment rate that would be observed if labor force participation rates
matched the average for the 15-year period from 1990 to 2004.
2
T OTA L N O N - FA R M E M P L OY M E N T G ROW T H R A T E J A N 1990 – A P R I L 2015
135.00
130.00
125.00
120.00
115.00
110.00
105.00
100.00
IL
RMW
National
95.00
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
L A S T 1 2 M O N T HS TOTA L NO N - FA R M E M P L OY M E NT GROW T H R AT E M AY 2 0 1 4 – A P R
2015
May/14
Jun/14
Jul/14
Aug/14
Sep/14
Oct/14
Nov/14 Dec/14
Jan/15
Feb/15 Mar/15
0.35%
0.30%
0.25%
0.20%
0.15%
0.10%
0.05%
0.00%
-0.05%
-0.10%
Nation
RMW
IL
-0.15%
3
Apr/15
Total Non-farm Employment growth rate by Sector Mar 2015 –Apr 2015
20 Construction
30 Manufacturing
40 Trade, transportation & utilities
50 Information
55 Financial activities
60 Professional & business services
65 Education & health
70 Leisure & hospitality
80 Other Services
90 Government
-1.00%
-0.50%
0.00%
0.50%
Nation
S HA D OW
1.00%
RMW
1.50%
IL
UN E MP LOY ME N T
Unemployment Rate: Official and Shadow
The unemployment rate estimates the percentage of workers in the labor force who are currently unemployed
but who are seeking work. The labor force participation rate is the percentage of the population 16 and older
who are either working or actively seeking work. The participation rate has declined since the 1990s and thus
a number of analysts feel that the official unemployment rate does not account for a larger number of people
who have dropped out of the labor force. REAL has estimated a shadow unemployment rate; this is calculated
as the unemployment rate that would be observed if labor force participation rates matched the average for
the 15-year period from 1990 to 2004.






In the 1990s, the average participation rate was 68.2% in Illinois whereas in 2010, it has been only
66.6%.
For the 15 years from 1990 to 2004, the average participation rate was 68.1% in Illinois.
In the 1990s in the US, the average participation rate was 65.5% whereas in 2010, it has been 66.0%;
for the 15 years from 1990 to 2004, the average participation rate was 66.6%.
The figures on the next page show the difference between the official and shadow unemployment
rate for Illinois (top figure) and the US as a whole (bottom figure).
After 2000, the gap between Illinois’s official and shadow unemployment rates increased until 2006
when it began to shrink. However, the gap went increasing again since 2010.
To bring the two together a further 125,900 jobs would need to be created in Illinois.
4

Illinois
14%
Unemployment Rate
12%
Shadow Unemployment Rate
10%
8%
6%
4%
2%
0%

US
14%
Unemployment Rate
Shadow Unemployment Rate
12%
10%
8%
6%
4%
2%
0%
5
E MPLOYMENT F ORECAST
Illinois
Total non-farm
Construction
Manufacturing
Trade, transportation & utilities
Information
Financial Activities
Professional & business services
Education & health
Leisure & hospitality
Other services
Government
Number of Jobs
(in thousands)
6200
April
2015
5,919,700
212,900
576,400
1,188,000
April
2016 (p)
5,975,400
226,100
572,200
1,198,700
98,200
97,700
-500
-0.51%
364,700
934,700
897,300
561,000
251,700
825,100
359,200
962,500
913,300
568,800
252,000
824,900
-5,500
27,800
16,000
7,800
300
-200
-1.51%
2.97%
1.78%
1.39%
0.12%
-0.02%
Number of Jobs
55,700~62,200
13,200
-4,200
10,700
Growth Rate
%
0.94%~1.05%
6.20%
-0.73%
0.90%
Total Non-farm Employment Forecast
6000
5800
5600
5400
5200
5000
4800
4600
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Year
* The values by sector for the number of jobs added are the lower bound of the forecast.
6
Employment Forecast for MSAs
Growth
Sector with
Highest
Growth
Rate
(p)
Sector with
Lowest
Growth
Rate (p)
1.18%~ 1.29%
+
GOV (3.41%)
INF (-10.25%)
300~400
0.28%~ 0.35%
+
INF (2.69%)
MAN (-2.44%)
4,074,600
55,100~79,700
1.37%~1.98%
+
CON (4.21%)
GOV (-1.63%)
183,100
182,700
-400~ 100
-0.24%~ 0.08%
-
EDU (1.66%)
PRO (-4.92%)
50,100
49,300
-700~-400
-1.47%~-0.83%
-
CON (0.82%)
INF (-7.03%)
Kankakee
45,400
45,100
-300~100
-0.68%~ 0.20%
-
MAN (1.21%)
LEI (-3.60%)
Peoria
177,700
177,700
10~700
0.01 %~ 0.40%
+
PRO (4.09%)
FIN (-4.91%)
Rockford
151,800
152,400
600~620
0.39%~0.41%
+
MAN (2.88%)
CON (-9.00%)
Springfield
111,400
111,400
-30~-10
-0.03%~ -0.01%
-
PRO (2.36%)
INF (-4.26%)
MSAs
March
2015*
March
2016
(p)*
Number of
Jobs *
Growth Rate
%
Bloomington-Normal
94,000
95,100
1,100 ~ 1,200
Champaign-UrbanaRantoul
108,200
108,500
Chicago
4,019,500
Davenport-Rock
Island-Moline
Decatur
*Total Non-Farm Jobs
Number of Jobs
(in thousands)
105000
Total Non-farm Employment Forecast
Bloomington (BN)
Number of Jobs
(in thousands)
Total Non-farm Employment Forecast
Champaign-Urbana-Rantoul (CU)
120000
100000
115000
95000
110000
90000
85000
105000
80000
100000
75000
95000
70000
90000
65000
60000
1990
1992
1994
Number of Jobs
(in thousands)
4200000
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
85000
1990
1992
1994
1996
Number of Jobs
(in thousands)
195000
Total Non-farm Employment Forecast
Chicago (CHI)
4100000
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
Total Non-farm Employment Forecast
Davenport-Rock-Island-Moline (DRM)
190000
4000000
185000
3900000
180000
3800000
3700000
175000
3600000
170000
3500000
165000
3400000
160000
3300000
155000
3200000
3100000
150000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
7
2016
Year
Number of Jobs
(in thousands)
62000
Number of Jobs
(in thousands)
50000
Total Non-farm Employment Forecast
Decatur (DE)
60000
48000
58000
46000
Total Non-farm Employment Forecast
Kankakee (KA)
44000
56000
42000
54000
40000
52000
38000
50000
36000
48000
34000
46000
32000
44000
1990
1992
1994
1996
Number of Jobs
(in thousands)
200000
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
30000
1990
1992
1994
1996
Number of Jobs
(in thousands)
170000
Total Non-farm Employment Forecast
Peoria (PE)
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
2010
2012
2014
2016
Year
Total Non-farm Employment Forecast
Rockford (RO)
165000
190000
160000
180000
155000
170000
150000
160000
145000
140000
150000
135000
140000
130000
130000
125000
120000
120000
1990
1992
1994
1996
Number of Jobs
(in thousands)
120000
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
2010
2012
2014
2016
Year
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Total Non-farm Employment Forecast
Springfield (SP)
118000
116000
114000
112000
110000
108000
106000
104000
102000
100000
98000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
8
Barometer of Job Recovery
Illinois Recovery Scenarios
Growth Rate
To Recover
At the point of
2015- April
At the point of
2010-June
In 5 years
52,600 jobs/year
114,100 jobs/year
In 8 years
32,900 jobs/year
71,300 jobs/year
In 10 years
26,300 jobs/year
57,100 jobs/year
In 15 years
17,500 jobs/year
38,000 jobs/year
* The figure 598,000 is the number of jobs needed for the Illinois economy to recover to the previous employment
peak, Nov-2000. The gap between the previous peak, Nov-2000 and the previous lowest point, Dec-2009 is
472,100. Adding 125,900, the number of jobs that needed to bring the shadow and official unemployment rates
together, the total number of jobs that Illinois needs to create is 598,000.
** The figure 27,500 represents the jobs recovered from December 2009 (previous lowest level) through June 2010.
*** The figure 334,800 represents the jobs recovered from December 2009 through April 2015.
9
I LLINOIS J OB R ECOVERY BY S ECTOR
Illinois job recovery by sector from Dec 2007 –April 2015
Job Changes in
Recession Period*
Job Changes in
Jan 2010-April
2015
Recovery Rate
Forecasted Job
Changes Jan
2010-Apr 2016
Forecasted
Recovery Rate
Construction
-63,800
9,000
14.11%
22,200
34.80%
Manufacturing
-114,600
21,600
18.85%
17,300
15.10%
Trade, transportation & utilities (TTU)
-97,700
67,700
69.29%
77,800
79.63%
Information
-11,300
-6,200
-54.87%
-6,700
-59.29%
Financial activities
-33,000
0
0.00%
-5,800
-17.58%
Professional & business services
-92,200
153,300
166.27%
181,100
196.42%
Education & health
32,600
75,400
-
91,400
-
Leisure & hospitality
-22,300
49,100
220.18%
56,900
255.16%
Other Services
-5,900
-4,300
-72.88%
-4,000
-67.80%
Government
*Recession period: Dec 2007- Dec 2009
6,000
-31,600
-
-31,400
-


Recovery by
Sector



During the recession period of December 2007-December 2009, 8 out of
10 Illinois sectors experienced negative job growth. Education & health
and Government were the only 2 sectors that had positive job growth
during the recession.
Since January 2010, Illinois employment growth resumed. Construction,
Manufacturing, Trade, transportation & utilities, Financial activities,
Professional & business services and Leisure & hospitality have
recovered 14.11%, 18.85%, 69.29%, 0.00%, 166.27% and 220.18%
respectively, from the jobs lost during the recession.
By April 2015, Professional & business services and Leisure & hospitality
had both recovered to their previous employment peak levels.
However, recovery rates for sectors such as Information and Other
Services are still negative, namely -54.87% and -72.88% respectively.
The 12-month-ahead job recovery forecasts show that the future
recovery rates in Illinois will increase for every sector except
Manufacturing, Information and Financial Services.
10
C ATCH UP S CENARIO
Catch-up Scenario* of Previous Peak Job Index in Illinois
Nation
RMW
IL
Previous Peak
Current
Catch-up
126.49
(Dec-2007)
119.39
(Jun-2000)
115.00
(Nov-2000)
129.52
(Apr 2015)
116.39
(Apr 2015)
112.36
(Apr 2015)
Positive
growth
Positive
growth
Positive
growth
Recovery rates at
April 2015**
20.14%
46.48%
22.97%
Metro Areas***:
Bloomington
Normal
ChampaignUrbana
Chicago
Davenport- Rock
Island-Moline
Decatur
Kankakee
Peoria
Rockford
Springfield
Metro-East
142.06
(Feb 2002)
116.26
(Jan 2009)
114.82
(Nov 2000)
115.06
(Mar 2008)
112.38
(Jan 2000)
125.66
(Nov 2011)
122.09
(Aug 2008)
122.81
(Nov 2000)
110.94
(Aug 2000)
114.97
(Jun 2001)
131.89
(Mar 2015)
109.77
(Mar 2015)
112.57
(Mar 2015)
110.63
(Mar 2015)
93.08
(Mar 2015)
126.57
(Mar 2015)
114.59
(Mar 2015)
112.59
(Mar 2015)
105.39
(Mar 2015)
105.76
(Mar 2015)
Negative
growth
Negative
growth
Positive
growth
Positive
growth
Negative
growth
Positive
Growth
Positive
growth
Positive
growth
Positive
growth
Negative
growth
NA
NA
101.17%
48.53%
NA
134%
27.12%
47.63%
75.19%
NA
* Catch-up scenarios are based on average monthly growth rate over the previous 12 months. Nation already passed its previous peak in February
2005.
**Recovery rates are percentage of jobs added since the last official end of the recession. We have also adjusted for differences in population and
labor participation rates i.e shadow unemployment between the data month and December 2007.
*** Due to lag of data release schedule there is one month of time lag in the catch-up scenario for metro areas.
NOTE: The US Bureau of Labor Statistics and the Illinois Department of Employment Security changed the way national and state employment
data are coordinated to be more consistent. As a result, there have been some significant changes in estimates for Illinois over the past year.
11
CBAI DECREASED IN MARCH
This index is based on national indices of leading indicators and is a barometer for the economy, tracing the
path of growth or contraction through to the current period and then forecasts up to 24 months into the
future.

The Chicago Business Activity Index (CBAI) decreased to 96.3 in March from 101.6 in February. The fall
is attributed to negative job growth in the manufacturing sector in the Chicago area.

In March, the national and regional economies shared negative features. The Federal Reserve Board
announced that the industrial production index decreased 0.6 percent in March after having risen 0.1 percent
in February.

Capacity utilization for the industrial sector fell 0.6 percentage points to 78.4 in March. The Chicago Fed
reported that the Chicago Fed National Activity Index (CFNAI) moved down to -0.42 in March from -0.18
in February, led by a fall in production-, employment- and housing-related indicators. In the Chicago region,
manufacturing employment fell 0.14 percent in March. Employment in the nonmanufacturing and
construction sectors rose 0.02 percent and 1.54 percent, respectively, in March. Retail sales are estimated to
have increased 1.91 percent.

In the coming months, the national economy is likely to stay on the expansion phase. The economic growth
reflected in the CFNAI-MA3 suggests that growth in national economic activity was somewhat below its
historical trend. The Bureau of Labor Statistics reported that total nonfarm payroll employment rose by
223,000 and the unemployment rate was unchanged to 5.4 percent in April. Considering recent national
economic conditions and movements of projected CBAI, the Chicago economy is expected to continue its
recovery trend over the next several months.
Chicago Business Activity Index
CBAI (Current: 101.1)
1 month 3 month 1 year
Historical (ago)
101.6
95.2
95.2
Forecast (ahead)
94.1
95.9
-
12
METROPOLITAN STATISTICAL
AREA LEAGUE TABLES
MSA LEAGUE TABLES SUMMARY*

Champaign-Urbana-Rantoul (2nd to 8th) experienced the deepest fall in March 2015.

Chicago (3th to 5th), Bloomington-Normal (5th to 7th), Springfield (6th to 9th) and Decatur
(8th to 10th) also dropped in terms of rank from last month.

The most remarkable upward move in March was recorded for Peoria (9th to 7th).

In the 12 months growth league table, upward moves were recorded for Kankakee (4th to 1st),
Metro-East (9th to 6th) and Bloomington-Normal (10th to 9th).

Downward moves were recorded for Champaign-Urbana-Rantoul (1st to 3rd), Chicago (3rd to
4th) and Decatur (6th to 10th).

In the 12 months growth league table, Decatur dropped to the last place and Kankakee climbed
to the first place.
*NOTE: The US Bureau of Labor Statistics and the Illinois Department of Employment Security changed the way national and state
employment data are coordinated to be more consistent. As a result, there have been some significant changes in estimates for
Illinois over the past year.
13
MSA League Tables*: Non-farm Employment Growth Rate
Monthly growth:
Rank
February 2015
March 2015
Rank
Change**
1
Kankakee(0.38%)
Kankakee(0.67%)
1
(+0)
2
Champaign-Urbana-Rantoul(0.27%)
Peoria(0.21%)
2
(+7)
3
Chicago(0.2%)
Rockford (0.17%)
3
(+1)
4
Rockford (0.13%)
Metro-East(0.1%)
4
(+3)
5
Bloomington-Normal(0.12%)
Chicago(0.01%)
5
(-2)
6
Springfield (0.11%)
Davenport-Rock Island-Moline(-0.09%)
6
(+4)
7
Metro-East(-0.01%)
Bloomington-Normal(-0.13%)
7
(-2)
8
Decatur(-0.11%)
Champaign-Urbana-Rantoul(-0.17%)
8
(-6)
9
Peoria(-0.78%)
Springfield (-0.36%)
9
(-3)
10
Davenport-Rock Island-Moline(-0.83%)
Decatur(-1.08%)
10
(-2)
Growth over last 12-months:
Rank
February 2015
March 2015
Rank
Change**
1
Champaign-Urbana-Rantoul (2.21%)
Kankakee (2.24%)
1
(+3)
2
Rockford (1.59%)
Rockford (2.14%)
2
(+0)
3
Chicago (1.59%)
Champaign-Urbana-Rantoul (1.82%)
3
 (-2)
4
Kankakee (1.33%)
Chicago (1.45%)
4
 (-1)
5
Springfield (1.28%)
Springfield (0.5%)
5
(+0)
6
Decatur (-0.21%)
Metro-East (-0.17%)
6
(+3)
7
Davenport-Rock Island-Moline (-0.24%)
Davenport-Rock Island-Moline (-0.17%)
7
(+0)
8
Peoria (-0.51%)
Peoria (-0.34%)
8
(+0)
9
Metro-East (-0.54%)
Bloomington-Normal (-0.58%)
9
(+1)
10
Bloomington-Normal (-0.55%)
Decatur (-1.58%)
10
 (-4)
MSA League Tables are based on revised employment data. For instances of equal growth rate for multiple MSAs ranks
are decided based on change of growth rate from previous month.
*
14
Unemployment Claims (Initial)
Unemployment Claims
(Initial, IL)
Unemployment Claims
(Initial, US)
40,000
1,200,000
Initial Claims (IL)
Initial Claims (US)
35,000
1,000,000
30,000
800,000
25,000
`
600,000
20,000
400,000
15,000
200,000
Jan/15
Jan/14
Jan/13
Jan/12
Jan/11
Jan/10
Jan/09
Jan/08
Jan/07
Jan/06
Jan/05
Jan/04
Jan/03
Jan/02
Jan/01
5,000
Jan/00
10,000
0
15