Illinois Job Index Release 12/29/2015 Data Jan 1990 / Nov 2015 Issue 2015.12 www.real.illinois.edu For November 2015 Illinois Job Index, the nation, RMW and Illinois all had positive job growth. The Illinois Job Index and MSA Report are issued monthly as tools for elected officials, policy leaders and the public. The objective is to enhance the understanding of the Illinois economy and business climate by comparing and measuring Illinois employment growth rates against those of the Rest of the Midwest (RMW: Indiana, Iowa, Michigan, Missouri, Ohio and Wisconsin) and the Nation. Data and analysis are provided by the Illinois Economic Observatory / Regional Economics Applications Laboratory, University of Illinois. Oct 2015– Nov 2015 Dec 2015 Positive Total non-farm employment Growth Rate % Nation 0.15 RMW Illinois Number of Jobs Last 12 months Nov 2015 Growth Rate% Number of Jobs Shadow U.R.* 211,000 1.88 2,637,000 10.95% 0.11 21,100 1.48 292,400 10.84% 0.01 400 0.61 35,700 10.19% *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. Talking Points Illinois Notes Nation Notes Illinois gained 400 jobs in November 2015, compared with a 13,700 job gain in October 2015. Compared to November 2014, Illinois has added 35,700 jobs. The three-month moving average, a more stable measure of labor market, showed an increase of 3,700 jobs per month. The Nation added 211,000 jobs at a rate of 0.15%, compared with a 298,000 job gain in October 2015. The three-month moving average was up by 218,000 jobs per month. The RMW added 21,100 jobs in November after a 62,500 job gain in October 2015. The three-month moving average was up by 11,300 jobs per month. Since the beginning of the recession in December 2007, Illinois has positive job gains 51 times and negative job changes 43 times. The state of Illinois now has a net loss of 60,700 jobs since the beginning of the recession in December 2007. Four sectors in Illinois have employment levels this month that are lower than January 1990 – Construction, Manufacturing, Financial Activities and Information. Since January 2010, when Illinois employment growth resumed after the national recession, Illinois has added 342,300 new jobs. By November 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 and Information. The shadow unemployment rates for Illinois, RMW and the Nation were 10.19%, 10.84% and 10.95%, compared to official unemployment rates of 5.7%, 4.5% and 5.0%. Through November 2015, the cumulative job growth for Illinois, RMW and the Nation compared to January 1990 stood at 12.51%, 17.21%, and 30.93%, respectively. Total nonfarm payroll employment was up by 211,000 jobs. Sectors such as Construction, Leisure & hospitality and Education & health had major job growth. The nation has recovered from the recent recession and added 4,550,000 additional jobs since the last employment peak in December 2007. However, for RMW and Illinois, they have not yet recovered from their respective peaks in 2000. The nation’s annual average growth rates from 2007 to 2015 were 0.07%, -0.27 %, -0.32%, 0.07%, 0.13%, 0.14%, 0.14%, 0.19% and 0.15% respectively. Illinois Jobs Index release 12/29/2015 www.real.illinois.edu page 1 Total Non-farm Employment growth rate Jan 1990 – November 2015 135.00 130.00 125.00 120.00 115.00 110.00 105.00 100.00 National RMW IL 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 Total Non-farm Employment and Employment Index Nation RMW Illinois November 2015 Number of Jobs 142,900,000 20,032,600 5,927,200 Current Index to Jan 1990 130.93 117.21 112.51 Previous Peak Index to Jan 1990 126.57 (Dec-2007) 119.44 (Jun-2000) 115.08 (Nov-2000) Changes in Jobs since Jan 1990 33,755,000 2,942,000 658,900 Changes in Jobs since Pervious Peak 4,550,000 -366,400 -129,800 Last 12 months Total Non-farm Employment Growth Rates December 2014 – November 2015 Dec/14 Jan/15 Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 0.40% 0.30% 0.20% 0.10% 0.00% -0.10% -0.20% Nation RMW IL -0.30% Illinois Jobs Index release 12/29/2015 www.real.illinois.edu page 2 Barometer of Job Recovery Illinois Recovery Scenarios Growth Rate To Recover At the point of 2015- November At the point of 2010-June In 5 years 40,800 jobs/year 104,100 jobs/year In 8 years 25,500 jobs/year 65,100 jobs/year In 10 years 20,400 jobs/year 52,100 jobs/year In 15 years 13,600 jobs/year 34,700 jobs/year * The figure 546,200 is the number of jobs needed for the Illinois economy to recover to the previous employment peak, Nov2000. The gap between the previous peak, Nov-2000 and the previous lowest point, Dec-2009 is 472,100. Adding 74,100, 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 546,200. **The figure 27,500 represents the jobs recovered from December 2009 (previous lowest level) through June 2010. *** The figure 342,300 represents the jobs recovered from December 2009 through November 2015. Illinois Jobs Index release 12/29/2015 www.real.illinois.edu page 3 Employment Growth Rate by Sector: Total Non-farm Employment growth rate by Sector, October 2015 – November 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 Sector notes Illinois Jobs Index 1.00% 1.50% 2.00% RMW 2.50% IL Illinois posted positive change in November 2015 by adding 400 jobs. Five out of ten sectors recorded net gains. Compared to October 2015, Information (-0.41% to 0.00%) had a major performance gain, while Construction (0.62% to -0.71%) had a major performance loss. Other Services (0.67% to 0.79%) and Manufacturing (-0.39% to -0.02%) also experienced performance gains, while Government (0.14% to 0.01%), Leisure & hospitality (0.50% to 0.16%), Education & health (0.78% to -0.12%), Professional & business services (-0.11% to -0.13%), Financial Activities (0.05% to 0.03%) and Trade, transportation & utilities (0.26% to 0.10%) experienced net losses in performances. In November at the national level, the top three job-gain sectors were: o Construction: 46,000 (0.71%) o Leisure & hospitality: 39,000 (0.26%) o Education & health: 40,000 (0.18%) The two sectors that lost jobs at the national level in November were: o Information: -12,000 (-0.43%) o Manufacturing: -1,000 (-0.01%) For Illinois, the major job-gain sectors in November were: o Other Services: 2,000 (0.79%) o Leisure & hospitality: 900 (0.16%) o Trade, transportation & utilities: 1,200 (0.10%) The top-three sectors that lost jobs in November for Illinois were: o Education & health: -1,100 (-0.12%) o Professional & business services: -1,200 (-0.13%) o Construction: -1,500 (-0.71%) For Illinois, four sectors have employment below 1990 levels. Compared to 1990 employment levels, Manufacturing has shed 355,800 jobs, Construction is down 21,200 jobs, Information down 32,700 jobs and Financial activities has 3,700 fewer jobs. release 12/29/2015 www.real.illinois.edu page 4 Total Non-farm Employment growth rate by sector Jan 1990 – November 2015 Illinois vs. RMW Nation Rate Rate Construction vs. RMW - Nation - Number of Jobs -21,200 Rate % -9.20 % 12.68 % 19.70 Manufacturing - - -355,800 -38.58 -23.42 -30.78 Trade, transportation & utilities (TTU) - - 35,800 3.12 7.42 19.13 Information - - -32,700 -25.10 -17.14 4.68 Financial activities - - -3,700 -0.99 18.00 24.25 Professional & business services - - 365,000 63.81 74.49 85.31 Education & health - - 375,400 70.95 73.95 106.92 Leisure & hospitality + - 179,300 46.70 37.31 65.02 Other Services + - 50,800 24.71 22.39 34.09 Government + - 75,600 10.01 9.82 21.12 Illinois job recovery by sector from Dec 2007 – November 2015 Job Changes in Recession Period* Job Changes in Jan 2010-Nov 2015 Recovery Rate Forecasted Job Changes Jan 2010November 2016 Forecasted Recovery Rate Construction -63,800 5,300 8.31% 9,600 15.05% Manufacturing -114,600 11,700 10.21% 2,200 1.92% Trade, transportation & utilities (TTU) -97,700 63,500 64.99% 65,500 67.04% Information -11,300 -6,800 -60.18% -8,000 -70.80% Financial activities Professional & business services Education & health -33,000 -92,200 32,600 4,200 155,600 82,600 12.73% 168.76% - 6,300 162,300 101,100 19.09% 176.03% - Leisure & hospitality -22,300 51,300 230.04% 60,800 272.65% Other services -5,900 400 6.78% 2,700 45.76% Government *Recession period: Dec 2007- Dec 2009 6,000 -25,800 - -24,000 - Recovery by Sector Illinois Jobs Index 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, Leisure & hospitality and Other Services have recovered 8.31%, 10.21%, 64.99%, 12.73%, 168.76%, 230.04% and 6.78% respectively, from the jobs lost during the recession. By November 2015, Professional & business services and Leisure & hospitality had both recovered to their previous employment peak levels. However, the recovery rate for Information is still negative, namely -60.18%. The 12-month-ahead job recovery forecasts show that the future recovery rates in Illinois will increase for every sector except Manufacturing and Information. release 12/29/2015 www.real.illinois.edu page 5 Construction Oct 2015- Nov 2015 Manufacturing Oct 2015- Nov 2015 % Change Number of Jobs Illinois -0.71 -1,500 RMW 2.19 16,700 Nation 0.71 46,000 Oct 2015- Nov 2015 Oct 2015- Nov 2015 % Change Number of Jobs Illinois -0.02 -100 RMW -0.03 -800 Nation -0.01 -1,000 110.00 100.00 90.00 80.00 70.00 National RMW IL 60.00 50.00 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 Trade, transportation & utilities (TTU) Oct 2015- Nov 2015 Oct 2015- Nov 2015 % Change Number of Jobs Illinois 0.10 1,200 RMW 0.07 2,800 Nation 0.18 49,000 125.00 120.00 115.00 110.00 105.00 100.00 National RMW IL 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 Illinois Jobs Index release 12/29/2015 www.real.illinois.edu page 6 Information Oct 2015- Nov 2015 Oct 2015- Nov 2015 % Change Number of Jobs Illinois 0.00 0 RMW 0.24 700 Nation -0.43 -12,000 140.00 130.00 120.00 110.00 100.00 90.00 80.00 National RMW IL 70.00 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 Financial activities Oct 2015- Nov 2015 Oct 2015- Nov 2015 % Change Number of Jobs Illinois 0.03 100 RMW 0.11 1,200 Nation 0.17 14,000 130.00 125.00 120.00 115.00 110.00 105.00 100.00 National RMW IL 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 Professional & business services Oct 2015- Nov 2015 Oct 2015- Nov 2015 % Change Number of Jobs Illinois -0.13 -1,200 RMW -0.41 -10,300 Nation 0.14 27,000 190.00 180.00 170.00 160.00 150.00 140.00 130.00 120.00 110.00 100.00 National RMW IL 90.00 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 Illinois Jobs Index release 12/29/2015 www.real.illinois.edu page 7 Education & health Oct 2015- Nov 2015 Oct 2015- Nov 2015 % Change Number of Jobs Illinois -0.12 -1,100 RMW 0.00 0 Nation 0.18 40,000 220.00 200.00 180.00 160.00 140.00 120.00 National RMW IL 100.00 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 Leisure & hospitality Oct 2015- Nov 2015 Oct 2015- Nov 2015 % Change Number of Jobs Illinois 0.16 900 RMW 0.52 10,300 Nation 0.26 39,000 170.00 160.00 150.00 140.00 130.00 120.00 110.00 100.00 National RMW IL 90.00 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 Other Services Oct 2015- Nov 2015 Oct 2015- Nov 2015 % Change Number of Jobs Illinois 0.79 2,000 RMW 0.04 300 Nation 0.11 6,000 135.00 130.00 125.00 120.00 115.00 110.00 105.00 100.00 National RMW IL 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 Illinois Jobs Index release 12/29/2015 www.real.illinois.edu page 8 Government Oct 2015- Nov 2015 Oct 2015- Nov 2015 % Change Number of Jobs Illinois 0.01 100 RMW 0.02 500 Nation 0.06 14,000 130.00 125.00 120.00 115.00 110.00 105.00 National RMW IL 100.00 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 ABOUT: The Regional Economics Applications Laboratory (REAL) is a unit of the Institute of Government and Public Affairs of the University of Illinois. REAL undertakes impact and forecasting analyses of the Illinois and several Midwestern economies and is also engaged in similar analysis in several other countries including Brazil, Chile, Colombia, and Japan. More information can be found at www.real.illinois.edu. Illinois Jobs Index release 12/29/2015 www.real.illinois.edu page 9