Illinois Job Index Release 010/30/2013 Data Jan 1990 / Sep 2013 Issue 2013.09 www.real.illinois.edu For August Illinois Job Index, IL and the Nation all had positive job growth. RMW had negative 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. Aug 2013– Sep 2013 Oct 2013 Positive Total non-farm employment Last 12 months Number of Jobs 163,000 Growth Rate% 1.70 Number of Jobs 2,285,000 Sep 2013 Nation Growth Rate % 0.12 Shadow U.R.* RMW -0.12 -23,800 1.14 217,100 14.6% Illinois 0.18 10,300 1.00 57,800 13.1% 12.5% *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 10,300 jobs in September 2013, compared with a revised 3,900 job gains in August 2013. Compared to September 2012, Illinois has added 57,800 jobs. The three-month moving average of jobs, a more stable measure of labor market, was up by 7,200 jobs per month. The Nation added 163,000 jobs at a rate of 0.12%, compared with a revised 238,000 job gains in August 2013. The three-month moving average of jobs was up by 163,300 jobs per month. The RMW shed 23,800 jobs in September at a rate of -0.12% after a revised 17,400 job gains in August. The three-month moving average was up by 5,900 jobs per month. Since the beginning of the recession in December 2007, Illinois has posted negative job changes 33 times and positive job gains also 36 times so far. The state of Illinois now has a net loss of 177,500 jobs since the beginning of the recession in December 2007. Two sectors in Illinois have employment levels this month that are lower than January 1990 – Construction and Information. Since January 2010, when Illinois employment growth resumed after the national recession, Illinois has added 226,200 new jobs. By September 2013, Professional & business services and Leisure & hospitality have both recovered to its previous employment peak level. The 12-month-ahead job recovery forecasts show that the future recovery rates will increase for sectors such as Manufacturing, Trade, transportation & utilities (TTU), Professional & business services, Leisure & hospitality and Other services. The shadow unemployment rates for Illinois, RMW and the Nation were 13.1%, 14.6% and 12.0%, compared to official unemployment rates of 9.1%, 7.6% and 7.3%. Through September 2013, the cumulative job growth for Illinois, RMW and the Nation compared to January 1990 stood at 10.29%, 12.89%, and 24.93%, respectively. Total nonfarm payroll employment was up by 163,000 jobs. Sectors such as Trade, transportation & utilities, Professional & business services, Information and Construction had major job gains. Since the last employment peak in December 2007, the nation has lost 1,692,000 jobs. However, for RMW and Illinois, they have not yet recovered from their respective peaks in 2000. The nation had average growth rates for 2007, 2008, 2009, 2010, 2011, 2012 and 2013 that were 0.07%, -0.27 %, -0.32%, 0.07%, 0.13%, 0.14% and 0.14%, respectively. Illinois Jobs Index release 10/30/2013 www.real.illinois.edu page 1 Total Non-farm Employment growth rate Jan 1990 – Sep 2013 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 Total Non-farm Employment and Employment Index Nation RMW Illinois September 2013 Number of Jobs 136,350,000 19,292,800 5,810,400 Current Index to Jan 1990 124.93 112.89 110.29 Previous Peak Index to Jan 1990 126.57 (Dec-2007) 119.44 (Jun-2000) 115.08 (Nov-2000) Changes in Jobs since Jan 1990 27,205,000 2,202,200 542,100 Changes in Jobs since Pervious Peak -1,692,000 -1,106,200 -246,600 Last 12 months Total Non-farm Employment Growth Rate Oct 2012 – Sep 2013 Oct/12 Nov/12 Dec/12 Jan/13 Feb/13 Mar/13 Apr/13 May/13 Jun/13 0.50% Nation RMW Jul/13 Aug/13 Sep/13 IL 0.40% 0.30% 0.20% 0.10% 0.00% -0.10% -0.20% -0.30% -0.40% Illinois Jobs Index release 10/30/2013 www.real.illinois.edu page 2 Barometer of Job Recovery Illinois Recovery Scenarios Growth Rate To Recover At the point of 2013- Sep At the point of 2010-June In 5 years 104,800 jobs/year 143,900 jobs/year In 8 years 65,500 jobs/year 90,000 jobs/year In 10 years 52,400 jobs/year 72,000 jobs/year In 15 years 34,900 jobs/year 48,000 jobs/year * The figure 749,600 is the number of jobs needed for the Illinois economy to recover to the previous employment peak, 2000Nov. The gap between the previous peak 2000-Nov and the previous lowest point 2009-Dec is 472,800. Adding 276,800, 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 749,600. **The figure 29,900 represents the jobs recovered from December 2009 (previous lowest level) through June 2010. *** The figure 225,800 represents the jobs recovered from December 2009 through September 2013. Illinois Jobs Index release 10/30/2013 www.real.illinois.edu page 3 Employment Growth Rate by Sector: Total Non-farm Employment growth rate by Sector Aug 2013 – Sep 2013 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% 3.00% IL Illinois posted Positive change in September 2013 by adding 10,300 jobs. Six out of ten sectors recorded net gains. Compared to August, Other services (0.04% to 2.64%) had a major performance gain; Leisure & hospitality (0.65% to -0.20%) had a major performance loss. Information (-0.30% to 0.40%), Government (-0.13% to 0.63%), Professional & business services (0.03% to 0.04%), Financial activities (-0.24% to 0.11%) and Construction (-2.17% to -0.22%) experienced net performance gain, while Trade, transportation & utilities (0.19% to 0.06%), Education & health(0.64% to -0.20%) and Manufacturing(-0.09% to -0.17%) experienced net losses in performance. In September at the national level, the top three job-gain sectors were: o Construction: 18,000 (0.31%) o Trade, transportation & utilities: 66,000 (0.25%) o Professional & business services: 32,000 (0.17%) Major loss at the national level in September were recorded by: o Financial Activities: -1,000(-0.01%) For Illinois, the major job-gain sectors in September were: o Other Services: 6,600 (2.64%) o Government: 5,200(0.63%) o Information: 400(0.40%) Following are the major top three sectors that lost jobs in September for Illinois: o Construction: -400 (-0.22%) o Education & health: -1,800 (-0.20%) o Leisure & hospitality: -1,100 (-0.20%) For Illinois, three sectors have employment below 1990 levels. Compared to 1990 employment levels, Manufacturing has -348,100 fewer jobs, Construction are down -46,100 jobs and Information down -31,000 jobs. release 10/30/2013 www.real.illinois.edu page 4 Total Non-farm Employment growth rate by sector Jan 1990 – Sep 2013 Illinois vs. Number of Jobs RMW Nation Rate Rate % % Construction vs. RMW - Nation - Rate % -46,100 -20.01 -0.83 7.40 Manufacturing - - -348,100 -37.74 -27.32 -32.75 Trade, transportation & utilities (TTU) - - 23,100 2.01 4.49 14.80 Information - - -31,000 -23.79 -19.28 0.49 Financial activities - - 700 0.19 15.26 20.00 Professional & business services - - 319,700 55.89 64.57 73.15 Education & health - - 352,500 66.62 66.80 93.18 Leisure & hospitality + - 156,200 40.69 32.16 53.19 Other Services + - 51,300 24.95 17.02 30.06 Government - - 72,000 9.53 10.28 20.49 Illinois job recovery by sector from Dec 2007 – Sep 2013 Job Changes in Recession Period* Job Changes in Jan 2010-Sep 2013 Recovery Rate Forecasted Job Changes Jan 2010Sep 2014 Forecasted Recovery Rate Construction -63,800 -19,600 -30.72% -22,100 -34.64% Manufacturing -114,500 19,300 16.86% 17,600 15.37% Trade, transportation & utilities (TTU) -97,100 50,200 51.70% 68,400 70.44% Information -11,300 -5,100 -45.13% -5,400 -47.79% Financial activities Professional & business services Education & health -32,700 -92,700 32,200 8,300 110,800 60,100 25.38% 119.53% -- 14,400 137,000 81,600 44.04% 147.79% -- Leisure & hospitality -22,300 28,200 126.46% 39,300 176.23% Other services -6,300 1,300 20.63% 4,100 65.08% Government *Recession period: Dec 2007- Dec 2009 5,600 -29,000 -- -26,700 -- 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 are the only 2 sectors that had positive job growth during the recession. Since January 2010, Illinois employment resumed. Manufacturing, Trade, transportation & utilities, Financial activities, Professional & business services, Leisure & hospitality and Other services have recovered 16.86%, 51.70%, 25.38%, 119.53%, 126.46%, 20.63%, respectively, from the job lost during the recession. By September 2013, Professional & business services and Leisure & hospitality have both recovered to their previous employment peak level. However, recovery rates for sectors such as Construction and Information are still negative, namely, -30.72% and -45.13% respectively. The 12-month-ahead job recovery forecasts show that the future recovery rates will increase for sectors such as Trade, transportation & utilities (TTU), Financial activities, Professional & business services, Leisure & hospitality and Other services. Construction and Information will continue to lose jobs with faster rates release 10/30/2013 www.real.illinois.edu page 5 Construction Aug 2013 – Sep 2013 Aug 2013 – Sep 2013 150.00 % Change Number of Jobs Illinois -0.22 -400 RMW -0.44 -3,000 Nation 0.31 18,000 140.00 130.00 120.00 110.00 100.00 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 Manufacturing Aug 2013 – Sep 2013 Aug 2013 – Sep 2013 % Change Number of Jobs Illinois -0.17 -1000 RMW 0.00 100 Nation 0.03 4,000 110.00 100.00 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 Trade, transportation & utilities (TTU) Aug 2013 – Sep 2013 Aug 2013 – Sep 2013 120.00 % Change Number of Jobs Illinois 0.06 700 RMW 0.05 1,900 Nation 0.25 66,000 115.00 110.00 105.00 100.00 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 Illinois Jobs Index release 10/30/2013 www.real.illinois.edu page 6 Information Aug 2013 – Sep 2013 Aug 2013 – Sep 2013 140.00 % Change Number of Jobs Illinois 0.4 400 RMW -0.66 -1,900 Nation 0.15 4,000 130.00 120.00 110.00 100.00 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 Financial activities Aug 2013 – Sep 2013 Aug 2013 – Sep 2013 130.00 % Change Number of Jobs Illinois 0.11 400 RMW -0.01 -100 Nation -0.01 -1,000 125.00 120.00 115.00 110.00 105.00 100.00 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 Professional & business services Aug 2013 – Sep 2013 Aug 2013 – Sep 2013 170.00 % Change Number of Jobs Illinois 0.04 400 RMW -0.22 -5,200 Nation 0.17 32,000 160.00 150.00 140.00 130.00 120.00 110.00 100.00 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 Illinois Jobs Index release 10/30/2013 www.real.illinois.edu page 7 Education & health Aug 2013 – Sep 2013 Aug 2013 – Sep 2013 200.00 % Change Number of Jobs Illinois -0.20 -1,800 RMW -0.27 -8,300 Nation 0.03 6,000 190.00 180.00 170.00 160.00 150.00 140.00 130.00 120.00 110.00 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 Leisure & hospitality Aug 2013 – Sep 2013 Aug 2013 – Sep 2013 150.00 % Change Number of Jobs Illinois -0.20 -1,100 RMW 0.04 800 Nation 0.09 13,000 140.00 130.00 120.00 110.00 100.00 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 Other Services Aug 2013 – Sep 2013 Aug 2013 – Sep 2013 135.00 % Change Number of Jobs Illinois 2.64 6,600 RMW -0.58 -4,600 Nation 0.05 3,000 130.00 125.00 120.00 115.00 110.00 105.00 100.00 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 Illinois Jobs Index release 10/30/2013 www.real.illinois.edu page 8 Government Aug 2013 – Sep 2013 Aug 2013 – Sep 2013 130.00 % Change Number of Jobs Illinois 0.63 5,200 RMW -0.14 -4,100 Nation 0.06 13,000 125.00 120.00 115.00 110.00 105.00 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 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 10/30/2013 www.real.illinois.edu page 9