Illinois Job Index Release 06/30/2013 Data Jan 1990 / May 2013 Issue 2013.06 www.real.illinois.edu For Feb 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. Apr 2013– May 2013 Jun 2013 Positive Total non-farm employment Growth Rate % Nation Last 12 months Number of Jobs May 2013 Number of Jobs Growth Rate% Shadow U.R.* 0.13 175,000 1.58 2,115,000 12.0% RMW 0.41 78,000 0.92 176,100 13.5% Illinois 0.10 5,600 0.86 49,100 12.3% *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 5,600 jobs in May 2013, compared with a revised 1,900 job loss in Apr 2013. Compared to May 2012, Illinois has added 49,100 jobs. The three-month moving average of jobs, a more stable measure of labor market, was down by 4,300 jobs per month. The Nation added 175,000 jobs at a rate of 0.13%, compared with a revised 149,000 job gains in Apr 2013. The three-month moving average of jobs was up by 155,300 jobs per month. The RMW added 78,000 jobs in May at a rate of 0.41% after a revised 7,500 job loss in Apr. The threemonth moving average was up by 5,200 jobs per month. Since the beginning of the recession in Dec 2007, Illinois has posted negative job changes 33 times and positive job gains 32 times so far. The state of Illinois now has a net loss of 206,700 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, Information and Financial activities. Since January 2010, when Illinois employment growth resumed after the national recession, Illinois has added 197,000 new jobs. By May 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, Leisure & hospitality, Information and Other services. The shadow unemployment rates for Illinois, RMW and the Nation were 12.3%, 13.5% and 12.0%, compared to official unemployment rates of 9.1%, 7.3% and 7.6%. Through May 2013, the cumulative job growth for Illinois, RMW and the Nation compared to January 1990 stood at 9.74%, 12.55%, and 24.27%, respectively. Total nonfarm payroll employment was up by 175,000 jobs. Sectors such as Construction, Trade, transportation & utilities, Information, Financial activities, Professional & business services, Education & health, Leisure & hospitality and Other Services had major job gains. Since the last employment peak in December 2007, the nation has lost 2,405,000 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 0.14%, respectively. Illinois Jobs Index release 06/24/2013 www.real.illinois.edu page 1 Total Non-farm Employment growth rate Jan 1990 – May 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 May 2013 Number of Jobs 135,637,000 19,235,500 5,781,200 Nation RMW Illinois Current Index to Jan 1990 124.27 112.55 109.74 Previous Peak Index to Jan 1990 126.57 (Dec-2007) 119.44 (Jun-2000) 115.08 (Nov-2000) Changes in Jobs since Jan 1990 26,492,000 2,144,900 512,900 Changes in Jobs since Pervious Peak -2,405,000 -1,163,500 -275,800 Last 12 months Total Non-farm Employment Growth Rate Jun 2012 – May 2013 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 0.50% Nation RMW IL 0.40% 0.30% 0.20% 0.10% 0.00% -0.10% -0.20% -0.30% -0.40% Illinois Jobs Index release 06/24/2013 www.real.illinois.edu page 2 Barometer of Job Recovery Illinois Recovery Scenarios Growth Rate To Recover At the point of 2013- May At the point of 2010-June In 5 years 98,900 jobs/year 132,300 jobs/year In 8 years 61,800 jobs/year 82,700 jobs/year In 10 years 49,400 jobs/year 66,100 jobs/year In 15 years 33,000 jobs/year 44,100 jobs/year * The figure 691,300 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 218,500, 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 691,300. **The figure 29,900 represents the jobs recovered from Dec. 2009 (previous lowest level) through June 2010. *** The figure 197,000 represents the jobs recovered from Dec. 2009 through May 2013. Illinois Jobs Index release 06/24/2013 www.real.illinois.edu page 3 Employment Growth Rate by Sector: Total Non-farm Employment growth rate by Sector Apr 2013 – May 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% Nation Sector notes Illinois Jobs Index 0.50% 1.00% 1.50% 2.00% RMW 2.50% IL Illinois posted Positive change in May 2013 by adding 5,600 jobs. Five out of ten sectors recorded net gains. Compared to Apr, Construction (-4.21% to 2.20%) had a major performance gain; Government (0.22% to -0.75%) had a major performance loss. Information (-0.30% to 1.10%), Professional & business services (0.22% to 0.94%), Leisure & hospitality (0.11 % to 0.90%) and Other Services (0.28% to 0.55%) experienced net performance gain while Manufacturing (-0.24% to -0.34%), Trade, transportation & utilities (-0.07% to -0.30%), Financial activities (0.43% to -0.19%), Education & health (0.19% to -0.15%) and Government (0.22 % to -0.75%) experienced net losses in performance. In May at the national level, the top three job-gain sectors were: o Professional & business services: 57,000 (0.31%) o Leisure & hospitality: 43,000 (0.31%) o Trade, transportation & utilities: 33,000 (0.13%) Major top two losses at the national level in were recorded by: o Manufacturing: -8,000 (-0.07%) o Government: -3,000(-0.01%) For Illinois, the major job-gain sectors in May were: o Professional & business services: 8,200 (0.94%) o Leisure & hospitality: 4,800 (0.90%) o Construction: 3,900(2.20%) Following are the major top three sectors that lost jobs in May for Illinois: o Government: -6,200 (-0.75%) o Trade, transportation & utilities: -3,500 (-0.30%) o Manufacturing: -2,000 (-0.34%) For Illinois, four sectors have employment below 1990 levels. Compared to 1990 employment levels, Manufacturing has -342,300fewer jobs, Construction is down -48,900 jobs, Information down -30,000 jobs and Financial activities down -500 jobs. release 06/24/2013 www.real.illinois.edu page 4 Total Non-farm Employment growth rate by sector Jan 1990 – May 2013 Illinois vs. Number of Jobs RMW Nation Rate Rate % % Construction vs. RMW - Nation - Rate % -48,900 -21.22 -0.19 7.05 Manufacturing - - -342,000 -37.08 -27.16 -32.75 Trade, transportation & utilities (TTU) - - 7,600 0.66 3.64 13.82 Information - - -30,000 -23.02 -19.00 1.01 Financial activities - - -500 -0.13 15.09 19.53 Professional & business services - - 307,700 53.79 63.47 71.34 Education & health - - 350,900 66.32 66.91 92.30 Leisure & hospitality + - 156,600 40.79 31.53 51.86 Other Services + - 49,600 24.12 17.08 30.02 Government - - 70,400 9.32 9.73 20.37 Illinois job recovery by sector from Dec 2007 – May 2013 Job Changes in Recession Period* Job Changes in Jan 2010-May 2013 Recovery Rate Forecasted Job Changes Jan 2010May 2014 Forecasted Recovery Rate Construction -63,800 -22,400 -35.11% -31,400 -49.22% Manufacturing -114,500 25,400 22.18% 12,700 11.09% Trade, transportation & utilities (TTU) -97,100 34,700 35.74% 25,500 26.26% Information -11,300 -4,100 -36.28% -3,300 -29.20% Financial activities Professional & business services Education & health -32,700 -92,700 32,200 7,100 98,800 58,500 21.71% 106.58% -- 12,300 119,400 74,900 37.61% 128.80% -- Leisure & hospitality -22,300 28,600 128.25% 35,900 160.99% Other services -6,300 -400 -6.35% 300 4.76% Government *Recession period: Dec 2007- Dec 2009 5,600 -30,600 -- -32,000 -- 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 22.18%, 35.74%, 21.71%, 106.58%, 128.25%, respectively, from the job lost during the recession. By May 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, -35.11%, -36.28% and -6.35% 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, Leisure & hospitality, Information and Other services. release 06/24/2013 www.real.illinois.edu page 5 Construction Apr 2013 – May 2013 Apr 2013 – May 2013 150.00 % Change Number of Jobs Illinois 2.20 3,900 RMW 1.68 11,400 Nation 0.12 7,000 140.00 130.00 120.00 110.00 100.00 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 Apr 2013 – May 2013 Apr 2013 – May 2013 % Change Number of Jobs Illinois -0.34 -2,000 RMW -0.02 -500 Nation -0.07 -8,000 110.00 100.00 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) Apr 2013 – May 2013 Apr 2013 – May 2013 120.00 % Change Number of Jobs Illinois -0.30 -3,500 RMW 0.23 8,400 Nation 0.13 33,000 115.00 110.00 105.00 100.00 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 06/24/2013 www.real.illinois.edu page 6 Information Apr 2013 – May 2013 Apr 2013 – May 2013 140.00 % Change Number of Jobs Illinois 1.11 1,100 RMW -0.07 -200 Nation 0.11 3,000 130.00 120.00 110.00 100.00 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 Apr 2013 – May 2013 Apr 2013 – May 2013 130.00 % Change Number of Jobs Illinois -0.19 -700 RMW 0.45 4,700 Nation 0.05 4,000 125.00 120.00 115.00 110.00 105.00 100.00 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 Apr 2013 – May 2013 Apr 2013 – May 2013 170.00 % Change Number of Jobs Illinois 0.94 8,200 RMW 1.10 25,500 Nation 0.31 57,000 160.00 150.00 140.00 130.00 120.00 110.00 100.00 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 06/24/2013 www.real.illinois.edu page 7 Education & health Apr 2013 – May 2013 Apr 2013 – May 2013 200.00 % Change Number of Jobs Illinois -0.15 -1,300 RMW 0.06 1,900 Nation 0.13 26,000 190.00 180.00 170.00 160.00 150.00 140.00 130.00 120.00 110.00 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 Apr 2013 – May 2013 Apr 2013 – May 2013 150.00 % Change Number of Jobs Illinois 0.90 4,800 RMW 1.08 20,300 Nation 0.31 43,000 140.00 130.00 120.00 110.00 100.00 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 Apr 2013 – May 2013 Apr 2013 – May 2013 135.00 % Change Number of Jobs Illinois 0.55 1,400 RMW 0.15 1,200 Nation 0.24 13,000 130.00 125.00 120.00 115.00 110.00 105.00 100.00 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 06/24/2013 www.real.illinois.edu page 8 Government Apr 2013 – May 2013 Apr 2013 – May 2013 130.00 % Change Number of Jobs Illinois -0.75 -6,200 RMW 0.14 4,100 Nation -0.01 -3,000 125.00 120.00 115.00 110.00 105.00 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 06/24/2013 www.real.illinois.edu page 9