Illinois Job Index Release 5/29/2015 Data Jan 1990 / Apr 2015 Issue 2015.5 www.real.illinois.edu For April 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. Mar 2015–Apr 2015 May 2015 Positive Total non-farm employment Growth Rate % Nation Last 12 months Apr 2015 Number of Jobs Growth Rate% Number of Jobs Shadow U.R.* 0.16 223,000 2.15 2,982,000 10.93% RMW 0.09 17,500 1.65 323,500 11.05% Illinois 0.08 4,800 1.07 62,900 10.94% *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 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 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 negative job changes 40 times and positive job gains 47 times. The state of Illinois now has a net loss of 68,200 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 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. Total nonfarm payroll employment was up by 223,000 jobs. Sectors such as Construction, Professional & business services and Education & health had major job growth. The nation has recovered from the recent recession and added 3,017,000 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 0.14% respectively. Illinois Jobs Index release 5/29/2015 www.real.illinois.edu page 1 Total Non-farm Employment growth rate Jan 1990 – April 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 April 2015 Number of Jobs 141,367,000 19,892,600 5,919,700 Current Index to Jan 1990 129.52 116.39 112.36 Previous Peak Index to Jan 1990 126.57 (Dec-2007) 119.44 (Jun-2000) 115.08 (Nov-2000) Changes in Jobs since Jan 1990 32,222,000 2,802,000 651,400 Changes in Jobs since Pervious Peak 3,017,000 -506,400 -137,300 Last 12 months Total Non-farm Employment Growth Rates May 2014 – April 2015 May/14 Jun/14 Jul/14 Aug/14 Sep/14 Oct/14 Nov/14 Dec/14 Jan/15 Feb/15 Mar/15 Apr/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% Illinois Jobs Index release 5/29/2015 www.real.illinois.edu page 2 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, Nov2000. 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. Illinois Jobs Index release 5/29/2015 www.real.illinois.edu page 3 Employment Growth Rate by Sector: Total Non-farm Employment growth rate by Sector, March 2015 – April 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% Nation Sector notes Illinois Jobs Index 0.50% 1.00% RMW 1.50% IL Illinois posted positive change in April 2015 by adding 4,800 jobs. Four out of ten sectors recorded net gains. Compared to March 2015, Other Services (-0.75% to 0.56%) had a major performance gain, while Construction (1.71% to -0.37%) had a major performance loss. Government (-0.13% to -0.08%), Leisure & hospitality (-0.57% to -0.04%), Education & health (-0.11% to 0.12%), and Professional & business services (-0.05% to 0.89%) also experienced net performance gains, while Financial activities (-0.43% to -0.65%), Information (0.30% to 0.51%), Manufacturing (-0.09% to -0.21%) and Trade, transportation & utilities (0.33% to 0.00%) experienced net losses in performances. In April at the national level, the top three job-gain sectors were: o Construction: 45,000 (0.71%) o Professional & business services: 62,000 (0.32%) o Education & health: 61,000 (0.28%) No sector lost jobs at the national level in April For Illinois, the major job-gain sectors in April were: o Professional & business services: 8,200 (0.89%) o Other Services: 1,400 (0.56%) o Education & health: 1,100 (0.12%) The top-three sectors that lost jobs in April for Illinois were: o Manufacturing: -1,200 (-0.21%) o Financial Activities: -2,400 (-0.65%) o Construction: -800 (-0.37%) For Illinois, four sectors have employment below 1990 levels. Compared to 1990 employment levels, Manufacturing has shed 345,900 jobs, Construction is down 17,500 jobs, Information down 32,100 jobs and Financial activities has 7,900 fewer jobs. release 5/29/2015 www.real.illinois.edu page 4 Total Non-farm Employment growth rate by sector Jan 1990 – April 2015 Illinois vs. RMW Nation Rate Rate Construction vs. RMW - Nation - Number of Jobs -17,500 Rate % -7.60 % 11.71 % 17.72 Manufacturing - - -345,900 -37.50 -23.87 -30.76 Trade, transportation & utilities (TTU) - - 40,000 3.48 6.85 17.98 Information - - -32,100 -24.64 -16.55 4.23 Financial activities - - -7,900 -2.12 16.18 22.88 Professional & business services - - 362,700 63.41 73.44 81.90 Education & health - - 368,200 69.59 71.15 103.35 Leisure & hospitality + - 177,100 46.13 35.96 61.94 Other Services + - 46,100 22.42 21.71 33.45 Government - - 69,800 9.24 10.02 20.69 Illinois job recovery by sector from Dec 2007 – April 2015 Job Changes in Recession Period* Job Changes in Jan 2010-Apr 2015 Recovery Rate Forecasted Job Changes Jan 2010Apr 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 Professional & business services Education & health -33,000 -92,200 32,600 0 153,300 75,400 0.00% 166.27% - -5,800 181,100 91,400 -17.58% 196.42% - 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 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 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. release 5/29/2015 www.real.illinois.edu page 5 Construction Mar 2015 – Apr 2015 Manufacturing Mar 2015 – Apr 2015 % Change Number of Jobs Illinois -0.37 -800 RMW 1.19 9,100 Nation 0.71 45,000 Mar 2015 – Apr 2015 Mar 2015 – Apr 2015 % Change Number of Jobs Illinois -0.21 -1,200 RMW 0.18 5,000 Nation 0.01 1,000 110.00 100.00 90.00 80.00 70.00 60.00 National RMW IL 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) Mar 2015 – Apr 2015 Mar 2015 – Apr 2015 % Change Number of Jobs Illinois 0.00 0 RMW -0.01 -200 Nation 0.09 24,000 120.00 115.00 110.00 105.00 100.00 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 5/29/2015 www.real.illinois.edu page 6 Information Mar 2015 – Apr 2015 Mar 2015 – Apr 2015 % Change Number of Jobs Illinois -0.51 -500 RMW 0.03 100 Nation 0.11 3,000 140.00 130.00 120.00 110.00 100.00 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 Mar 2015 – Apr 2015 Mar 2015 – Apr 2015 % Change Number of Jobs Illinois -0.65 -2,400 RMW -0.16 -1,700 Nation 0.11 9,000 130.00 125.00 120.00 115.00 110.00 105.00 100.00 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 Mar 2015 – Apr 2015 Mar 2015 – Apr 2015 % Change Number of Jobs Illinois 0.89 8,200 RMW 0.45 11,100 Nation 0.32 62,000 190.00 180.00 170.00 160.00 150.00 140.00 130.00 120.00 110.00 100.00 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 5/29/2015 www.real.illinois.edu page 7 Education & health Mar 2015 – Apr 2015 Mar 2015 – Apr 2015 % Change Number of Jobs Illinois 0.12 1,100 RMW 0.21 6,600 Nation 0.28 61,000 220.00 200.00 180.00 160.00 140.00 120.00 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 Mar 2015 – Apr 2015 Mar 2015 – Apr 2015 % Change Number of Jobs Illinois -0.04 -200 RMW -0.29 -5,700 Nation 0.11 17,000 170.00 160.00 150.00 140.00 130.00 120.00 110.00 100.00 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 Mar 2015 – Apr 2015 Mar 2015 – Apr 2015 % Change Number of Jobs Illinois 0.56 1,400 RMW -0.25 -2,100 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 5/29/2015 www.real.illinois.edu page 8 Government Mar 2015 – Apr 2015 Mar 2015 – Apr 2015 % Change Number of Jobs Illinois -0.08 -700 RMW -0.15 -4,300 Nation 0.05 10,000 130.00 125.00 120.00 115.00 110.00 105.00 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 5/29/2015 www.real.illinois.edu page 9