Illinois Job Index Release 07/30/2013 Data Jan 1990 / Jun 2013 Issue 2013.07 www.real.illinois.edu For July Illinois Job Index, IL, RMW and the Nation 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. May 2013– Jun 2013 Jul 2013 Positive Total non-farm employment Growth Rate % Nation Last 12 months Number of Jobs Jun 2013 Number of Jobs Growth Rate% Shadow U.R.* 0.14 188,000 1.70 2,267,000 12.0% RMW 0.19 36,400 1.06 201,600 13.6% Illinois 0.09 5,400 0.80 45,800 12.6% *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 5,400 jobs in Jun 2013, compared with a revised 4,800 job gains in May 2013. Compared to Jun 2012, Illinois has added 45,800 jobs. The three-month moving average of jobs, a more stable measure of labor market, was up by 2,800 jobs per month. The Nation added 188,000 jobs at a rate of 0.14%, compared with a revised 176,000 job gains in May 2013. The three-month moving average of jobs was up by 187,700 jobs per month. The RMW added 36,400 jobs in Jun at a rate of 0.19% after a revised 78,400 job gains in May. The three-month moving average was up by 35,800 jobs per month. Since the beginning of the recession in Dec 2007, Illinois has posted negative job changes 33 times and positive job gains also 33 times so far. The state of Illinois now has a net loss of 202,100 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 and Information. Since January 2010, when Illinois employment growth resumed after the national recession, Illinois has added 201,600 new jobs. By Jun 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 Financial activities, Professional & business services and Leisure & hospitality. The shadow unemployment rates for Illinois, RMW and the Nation were 12.6%, 13.6% and 12.0%, compared to official unemployment rates of 9.2%, 7.4% and 7.6%. Through Jun 2013, the cumulative job growth for Illinois, RMW and the Nation compared to January 1990 stood at 9.82%, 12.77%, and 24.49%, respectively. Total nonfarm payroll employment was up by 188,000 jobs. Sectors such as Construction, Trade, transportation & utilities, Financial activities, Professional & business services, Education & health and Leisure & hospitality had major job gains. Since the last employment peak in December 2007, the nation has lost 2,166,000 jobs. However, for RMW and Illinois, they have not yet recovered from their respective peaks in 2000. The nation has average growth rates for 2007, 2008, 2009, 2010, 2011, 2012 and 2013 were 0.07%, -0.27 %, -0.32%, 0.07%, 0.13%, 0.14% and 0.15%, respectively. Illinois Jobs Index release 07/30/2013 www.real.illinois.edu page 1 Total Non-farm Employment growth rate Jan 1990 – Jun 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 Jun 2013 Number of Jobs 135,876,000 19,272,300 5,785,800 Current Index to Jan 1990 124.49 112.77 109.82 Previous Peak Index to Jan 1990 126.57 (Dec-2007) 119.44 (Jun-2000) 115.08 (Nov-2000) Changes in Jobs since Jan 1990 26,731,000 2,181,700 517,500 Changes in Jobs since Pervious Peak -2,166,000 -1,126,700 -271,200 Last 12 months Total Non-farm Employment Growth Rate Jul 2012 – Jun 2013 Jul/12 0.50% Aug/12 Nation Sep/12 Oct/12 RMW Nov/12 Dec/12 Jan/13 Feb/13 Mar/13 Apr/13 May/13 Jun/13 IL 0.40% 0.30% 0.20% 0.10% 0.00% -0.10% -0.20% -0.30% -0.40% Illinois Jobs Index release 07/30/2013 www.real.illinois.edu page 2 Barometer of Job Recovery Illinois Recovery Scenarios Growth Rate To Recover At the point of 2013- June At the point of 2010-June In 5 years 101,100 jobs/year 135,400 jobs/year In 8 years 63,200 jobs/year 84,600 jobs/year In 10 years 50,500 jobs/year 67,700 jobs/year In 15 years 33,700 jobs/year 45,100 jobs/year * The figure 706,900 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 234,100, 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 706,900. **The figure 29,900 represents the jobs recovered from Dec. 2009 (previous lowest level) through June 2010. *** The figure 201,600 represents the jobs recovered from Dec. 2009 through Jun 2013. Illinois Jobs Index release 07/30/2013 www.real.illinois.edu page 3 Employment Growth Rate by Sector: Total Non-farm Employment growth rate by Sector May 2013 – Jun 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 -1.50% -1.00% -0.50% 0.00% 0.50% Nation Sector notes Illinois Jobs Index 1.00% 1.50% 2.00% 2.50% RMW 3.00% 3.50% IL Illinois posted Positive change in June 2013 by adding 5,400 jobs. Three out of ten sectors recorded net gains. Compared to May, Construction (2.03% to 2.98%) had a major performance gain; Other services (0.47% to -0.98%) had a major performance loss. Trade, transportation & utilities (-0.24% to 0.34%) and Education & health (0.01% to 0.06) experienced net performance gain while Information (1.11% to -0.40%), Financial activities (0.24% to -0.03%), Professional & business services (0.71% to 0.55%) and Leisure & hospitality (1.01% to -0.20%) experienced net losses in performance. In June at the national level, the top three job-gain sectors were: o Professional & business services: 61,000 (0.33%) o Leisure & hospitality: 57,000 (0.40%) o Trade, transportation & utilities: 48,000 (0.19%) Major top three losses at the national level in were recorded by: o Government: -8,000(-0.04%) o Information: -4,000(-0.15%) o Other services: -3,000(-0.05%) For Illinois, the major job-gain sectors in June were: o Professional & business services: 4,800 (0.55%) o Construction: 5,400(2.98%) o Trade, transportation & utilities: 3,900(0.34%) Following are the major top three sectors that lost jobs in June for Illinois: o Other services: -2,500 (-0.98%) o Government: -3,600 (-0.44%) o Manufacturing: -1,600 (-0.28%) For Illinois, three sectors have employment below 1990 levels. Compared to 1990 employment levels, Manufacturing has -344,100 fewer jobs, Construction are down -43,800 jobs and Information down -30,400 jobs. release 07/30/2013 www.real.illinois.edu page 4 Total Non-farm Employment growth rate by sector Jan 1990 – Jun 2013 Illinois vs. Number of Jobs RMW Nation Rate Rate % % Construction vs. RMW - Nation - Rate % -43,800 -19.01 -0.16 6.95 Manufacturing - - -344,100 -37.31 -27.04 -32.74 Trade, transportation & utilities (TTU) - - 12,200 1.06 3.85 14.05 Information - - -30,400 -23.33 -19.28 0.79 Financial activities - - 1,000 0.27 15.34 19.85 Professional & business services - - 310,500 54.28 63.59 72.11 Education & health - - 352,800 66.68 66.92 92.38 Leisure & hospitality + - 156,100 40.66 32.62 52.70 Other Services + - 46,900 22.81 17.17 29.90 Government - - 64,700 8.57 9.93 20.38 Illinois job recovery by sector from Dec 2007 – Jun 2013 Job Changes in Recession Period* Job Changes in Jan 2010-Jun 2013 Recovery Rate Forecasted Job Changes Jan 2010Jun 2014 Forecasted Recovery Rate Construction -63,800 -17,300 -27.12% -20,700 -32.45% Manufacturing -114,500 23,300 20.35% 9,100 7.95% Trade, transportation & utilities (TTU) -97,100 39,300 40.47% 38,000 39.13% Information -11,300 -4,500 -39.82% -4,100 -36.28% Financial activities Professional & business services Education & health -32,700 -92,700 32,200 8,600 101,600 60,400 26.30% 109.60% -- 15,300 127,300 76,300 46.79% 137.32% -- Leisure & hospitality -22,300 28,100 126.01% 34,600 155.16% Other services -6,300 -3,100 -49.21% -3,400 -53.97% Government *Recession period: Dec 2007- Dec 2009 5,600 -36,300 -- -38,000 -- Recovery by Sector Illinois Jobs Index During the recession period of Dec 2007-Dec 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 Jan 2010, Illinois employment resumed. Manufacturing, Trade, transportation & utilities, Financial activities, Professional & business services and Leisure & hospitality have recovered 20.35%, 40.47%, 26.30%, 109.60%, 126.01%, respectively, from the job lost during the recession. By Jun 2013, Professional & business services and Leisure & hospitality have both recovered to its previous employment peak level. However, recovery rates for sectors such as Construction, Information and Other services are still negative, namely, -27.12%, -39.82% and -49.21% respectively. The 12-month-ahead job recovery forecasts show that the future recovery rates will increase for sectors such as Financial activities, Professional & business services and Leisure & hospitality. release 07/30/2013 www.real.illinois.edu page 5 Construction May 2013 – Jun 2013 May 2013 – Jun 2013 150.00 % Change Number of Jobs Illinois 2.98 5,400 RMW -0.22 -1,500 Nation 0.14 8,000 140.00 130.00 120.00 110.00 100.00 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 May 2013 – Jun 2013 May 2013 – Jun 2013 % Change Number of Jobs Illinois -0.28 -1,600 RMW 0.12 3,200 Nation -0.03 -3,000 110.00 100.00 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) May 2013 – Jun 2013 May 2013 – Jun 2013 120.00 % Change Number of Jobs Illinois 0.34 3,900 RMW 0.25 9,000 Nation 0.19 48,000 115.00 110.00 105.00 100.00 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 07/30/2013 www.real.illinois.edu page 6 Information May 2013 – Jun 2013 May 2013 – Jun 2013 140.00 % Change Number of Jobs Illinois -0.40 -400 RMW -0.31 -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 Financial activities 2012 2013 May 2013 – Jun 2013 May 2013 – Jun 2013 130.00 % Change Number of Jobs Illinois -0.03 -100 RMW 0.33 3,400 Nation 0.16 13,000 125.00 120.00 115.00 110.00 105.00 100.00 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 Professional & business services 2012 2013 May 2013 – Jun 2013 May 2013 – Jun 2013 170.00 % Change Number of Jobs Illinois 0.55 4,800 RMW 0.10 2,400 Nation 0.33 61,000 160.00 150.00 140.00 130.00 120.00 110.00 100.00 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 Illinois Jobs Index 2012 2013 release 07/30/2013 www.real.illinois.edu page 7 Education & health May 2013 – Jun 2013 May 2013 – Jun 2013 200.00 % Change Number of Jobs Illinois 0.06 500 RMW -0.09 -2,800 Nation 0.08 16,000 190.00 180.00 170.00 160.00 150.00 140.00 130.00 120.00 110.00 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 Leisure & hospitality 2012 2013 May 2013 – Jun 2013 May 2013 – Jun 2013 150.00 % Change Number of Jobs Illinois -0.20 -1,100 RMW 0.98 18,500 Nation 0.40 57,000 140.00 130.00 120.00 110.00 100.00 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 Other Services 2012 2013 May 2013 – Jun 2013 May 2013 – Jun 2013 135.00 % Change Number of Jobs Illinois -0.98 -2,500 RMW 0.16 1,300 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 Illinois Jobs Index 2012 2013 release 07/30/2013 www.real.illinois.edu page 8 Government May 2013 – Jun 2013 May 2013 – Jun 2013 130.00 % Change Number of Jobs Illinois -0.44 -3,600 RMW 0.13 3,700 Nation -0.04 -8,000 125.00 120.00 115.00 110.00 105.00 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 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 07/30/2013 www.real.illinois.edu page 9