Illinois Job Index Release 03/22/2013 Data Jan 1990 / Feb 2013 Issue 2013.02 www.real.illinois.edu For Jan Illinois Job Index, IL, the 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. Dec 2012– Jan 2013 Feb 2013 Positive Total non-farm employment Growth Rate % Nation Last 12 months Number of Jobs Jan 2013 Number of Jobs Growth Rate% Shadow U.R. * 0.09 119,000 1.51 2,001,000 12.1% RMW 0.14 26,600 0.97 183,500 14.0% Illinois 0.12 7,100 1.10 62,700 11.3% *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 7100 jobs in Jan 2013, compared with a revised 5,200 job losses in Dec 2012. Compared to Jan 2012, Illinois has added 62,700 jobs. The three-month moving average of jobs, a more stable measure of labor market, was up by 3,800 jobs per month. The Nation added 119,000 jobs at a rate of 0.09%, compared with a revised 219,000 job gains in Dec 2012. The three-month moving average of jobs was up by 195,000 jobs per month. RMW added 26,600 jobs in Jan at a rate of 0.14% after a revised 13,800 job gains in Dec. The threemonth moving average was up by 15,500 jobs per month. Since the beginning of the recession in Dec 2007, Illinois has posted negative job changes 31 times and positive job gains 30 times so far. The state of Illinois now has a net loss of 207,900 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 195,800 new jobs. By Feb 2013, sector Leisure & hospitality have recovered to its previous employment peak levels. The 12-month-ahead job recovery forecasts show that the future recovery rates will increase for sectors such as Manufacturing, Trade, transportation & utilities, Financial activities, Professional & business services and Leisure & hospitality. For sectors such as Construction and Information, they will continue to lose jobs with faster rates. The shadow unemployment rates for Illinois, RMW and the Nation were 11.3%, 14.0% and 12.1%, compared to official unemployment rates of 9.0%, 7.4% and 7.9%. Through Jan 2013, the cumulative job growth for Illinois, RMW and the Nation compared to January 1990 stood at 9.71%, 12.07%, and 23.51%, respectively. Total nonfarm payroll employment was up by 119,000 jobs. Sectors such as Construction, Manufacturing, Trade, transportation & utilities, Financial activities, Professional & business services, Leisure & hospitality and Other services had major job gains. Since the last employment peak in December 2007, the nation has lost 3,232,000 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 and 2012 were 0.07%, -0.27 %, 0.32%, 0.07%, 0.13%, 0.14% respectively. Illinois Jobs Index release 03/22/2013 www.real.illinois.edu page 1 Total Non-farm Employment growth rate Jan 1990 – Jan 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 Jan 2013 Number of Jobs 134,810,000 19,153,800 5,780,000 Current Index to Jan 1990 123.51 112.07 109.71 Previous Peak Index to Jan 1990 126.57 (Dec-2007) 119.44 (Jun-2000) 115.08 (Nov-2000) Changes in Jobs since Jan 1990 25,665,000 2,063,200 511,700 Changes in Jobs since Pervious Peak -3,232,000 -1,245,200 -277,000 Last 12 months Total Non-farm Employment Growth Rate Feb 2012 – Jan 2013 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 0.30% 0.25% Nation RMW IL 0.20% 0.15% 0.10% 0.05% 0.00% -0.05% -0.10% -0.15% Illinois Jobs Index release 03/22/2013 www.real.illinois.edu page 2 Barometer of Job Recovery Illinois Recovery Scenarios Growth Rate To Recover At the point of 2013-Jan At the point of 2010-June In 5 years 91,700 jobs/year 124,900 jobs/year In 8 years 57,300 jobs/year 78,100 jobs/year In 10 years 45,900 jobs/year 62,400 jobs/year In 15 years 30,600 jobs/year 41,600 jobs/year * The figure 654,300 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 181,500, 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 654,300. **The figure 29,900 represents the jobs recovered from Dec. 2009 (previous lowest level) through June 2010. *** The figure 195,800 represents the jobs recovered from Dec. 2009 through Jan 2013. Illinois Jobs Index release 03/22/2013 www.real.illinois.edu page 3 Employment Growth Rate by Sector: Total Non-farm Employment growth rate by Sector Dec 2012- Jan 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 -0.80% -0.60% -0.40% -0.20% 0.00% Nation Sector notes Illinois Jobs Index 0.20% 0.40% 0.60% 0.80% RMW 1.00% 1.20% IL Illinois posted positive change in Jan 2013 by Added 7,100 jobs. Only three out of ten sectors recorded net losses. Compared to Dec, Construction (-0.22% to 0.93%) had a major performance gain; Trade, transportation & utilities (0.22% to -0.47%) had a major performance loss. Manufacturing (-0.72% to 0.22%), Financial activities (0.05% to 0.60%), Profession & business services (-0.40% to 0.06%), Education & health (0.05% to 0.63%), Leisure & hospitality (0.06% to 0.17%) and Other services (-0.20% to 0.80%) experienced net performance gain while Information (0.50% to -0.10%) and Government (-0.07% to -0.18%) experienced net losses in performance. In Jan at the national level, the top three job-gain sectors were: o Leisure & hospitality: 30,000 (0.22%) o Trade, transportation & utilities: 26,000 (0.10%) o Construction: 25,000 (0.44%) Major losses at the national level in Jan were recorded by: o Government: -21,000 (-0.10%) For Illinois, the top three job-gain sectors in Dec were: o Education & health: 5,500 (0.63%) o Financial activities: 2,200 (0.60%) o Other services: 2,200 (0.80%) Following are the major sectors that lost jobs in Jan for Illinois: o Trade, transportation & utilities: -5,500 (-0.47%) o Government: -1,500 (-0.18%) o Information: -100 (-0.10%) For Illinois, four sectors have employment below 1990 levels. Compared to 1990 employment levels, Manufacturing has -338,700 fewer jobs, Construction is down -45,400 jobs, Information down -30,700 jobs and Financial activities down -1,800 jobs. release 03/22/2013 www.real.illinois.edu page 4 Total Non-farm Employment growth rate by sector Jan 1990 – Jan 2013 Illinois vs. RMW Nation Rate Rate % % Nation - Number of Jobs Construction vs. RMW - Rate % -45,400 -19.70 0.19 5.79 Manufacturing - - -338,700 -36.72 -27.48 -32.78 Trade, transportation & utilities (TTU) - - 15,900 1.39 3.52 13.49 Information - - -30,700 -23.56 -17.90 0.26 Financial activities - - -1,800 -0.48 13.94 18.99 Professional & business services - - 296,500 51.84 62.15 68.57 Education & health - - 348,200 65.81 65.95 90.92 Leisure & hospitality + - 154,700 40.30 29.85 49.96 Other Services + - 46,700 22.71 18.03 29.85 Government + - 74,700 9.89 9.41 20.40 Illinois job recovery by sector from Dec 2007 – Jan 2013 Job Changes in Recession Period* Job Changes in Jan 2010-Jan 2013 Recovery Rate Forecasted Job Changes Jan 2010Jan 2014 Forecasted Recovery Rate Construction -63,800 -18,900 -29.62% -26,100 -40.91% Manufacturing -114,500 28,700 25.07% 31,800 27.77% Trade, transportation & utilities (TTU) -97,100 43,000 44.28% 57,500 59.22% Information -11,300 -4,800 -42.48% -4,900 -43.36% Financial activities Professional & business services Education & health -32,700 -92,700 32,200 5,800 87,600 55,800 17.74% 94.50% -- 14,200 98,700 77,100 43.43% 106.47% -- Leisure & hospitality -22,300 26,700 119.73% 37,700 169.06% Other services -6,300 -3,300 -52.38% -1,400 -22.22% Government *Recession period: Dec 2007- Dec 2009 5,600 -26,300 -- -17,000 -- 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 25.07%, 44.28%, 17.74%, 94.50%,119.73%, respectively, from the job lost during the recession. By Feb 2013, sector Leisure & hospitality have recovered to its previous employment peak levels. However, Construction, Information and Other services continued to lose jobs leading to negative recovery rates of -29.62%, -42.48% and -52.38% respectively. The 12-month-ahead job recovery forecasts show that the future recovery rates will increase for sectors such as Manufacturing, Trade, transportation & utilities, Financial activities, Professional & business services and Leisure & hospitality. For sectors such as Construction and Information, they will continue to lose jobs with faster rates. release 03/22/2013 www.real.illinois.edu page 5 Construction Dec 2012 – Jan 2013 Dec 2012 – Jan 2013 150.00 % Change Number of Jobs Illinois 0.93 1,700 RMW 0.57 3,900 Nation 0.44 25,000 140.00 130.00 120.00 110.00 100.00 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 Dec 2012 – Jan 2013 Dec 2012 – Jan 2013 % Change Number of Jobs Illinois 0.22 1,300 RMW 0.38 9,800 Nation 0.10 12,000 110.00 100.00 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) Dec 2012 – Jan 2013 Dec 2012 – Jan 2013 120.00 % Change Number of Jobs Illinois -0.47 -5,500 RMW 0.01 200 Nation 0.10 26,000 115.00 110.00 105.00 100.00 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 03/22/2013 www.real.illinois.edu page 6 Information Dec 2012 – Jan 2013 Dec 2012 – Jan 2013 140.00 % Change Number of Jobs Illinois -0.10 -100 RMW 0.59 1,700 Nation 0.04 1,000 130.00 120.00 110.00 100.00 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 Dec 2012 – Jan 2013 Dec 2012 – Jan 2013 130.00 % Change Number of Jobs Illinois 0.60 2,200 RMW -0.53 -5,500 Nation 0.08 6,000 125.00 120.00 115.00 110.00 105.00 100.00 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 Dec 2012 – Jan 2013 Dec 2012 – Jan 2013 170.00 % Change Number of Jobs Illinois 0.06 500 RMW 0.45 10,300 Nation 0.09 16,000 160.00 150.00 140.00 130.00 120.00 110.00 100.00 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 03/22/2013 www.real.illinois.edu page 7 Education & health Dec 2012 – Jan 2013 Dec 2012 – Jan 2013 200.00 % Change Number of Jobs Illinois 0.63 5,500 RMW 0.24 7,100 Nation 0.04 9,000 190.00 180.00 170.00 160.00 150.00 140.00 130.00 120.00 110.00 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 Dec 2012 – Jan 2013 Dec 2012 – Jan 2013 150.00 % Change Number of Jobs Illinois 0.17 900 RMW 0.55 10,200 0.07 0.22 30,000 140.00 130.00 120.00 110.00 100.00 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 Dec 2012 – Jan 2013 Dec 2012 – Jan 2013 135.00 % Change Number of Jobs Illinois 0.80 2,000 RMW 0.61 4,800 Nation 0.20 11,000 130.00 125.00 120.00 115.00 110.00 105.00 100.00 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 03/22/2013 www.real.illinois.edu page 8 Government Dec 2012 – Jan 2013 Dec 2012 – Jan 2013 130.00 % Change Number of Jobs Illinois -0.18 -1,500 RMW -0.56 -16,200 Nation -0.10 -21,000 125.00 120.00 115.00 110.00 105.00 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 03/22/2013 www.real.illinois.edu page 9