SZALINSKI’S SUMMARY: Unemployment continues to rise faster than the national average in Illinois and was up 0.5 points in March over the last year. The rate has increased in all metro areas and only three areas have recorded new job growth compared to March 2025. The state overall has also lost nonfarm jobs since then.
WHY IT MATTERS: Employment data tells us about the health of the economy, including down to more local levels in Illinois. The state’s economy typically struggles more than the national economy and that appears to be the trend again here. The data is important for policy makers to analyze, but rising unemployment could also be a political liability for incumbents seeking reelection.
STATEWIDE: Illinois’ unemployment hit 5.1% in March after first topping 5% the month before, according to the latest data from the Department of Employment Security. That’s up from 4.6% in March 2025 and state leaders say President Donald Trump’s policies are to blame. However, the national unemployment rate was 4.3% in March – an increase of just 0.1 points over the last year.
“While Illinois added jobs in March, rising unemployment and continued softness in key sectors reflect broader economic uncertainty coming out of Washington,” Deputy Gov. Andy Manar said in a statement. “The Trump Administration’s policies are creating real headwinds for state and working families across the country.”
BETTER MONTH: Illinois added 8,400 nonfarm jobs in March, according to the preliminary data. That’s an improvement from February when the state lost 17,900 jobs, according to revised data for the month.
But since March 2025, Illinois has lost 4,300 nonfarm jobs. Trade, transportation and utility jobs have seen the largest decline, with 18,900 jobs lost in the last year. Private education and health services jobs increased by 21,700.
PARTICIPATION: The number of people unemployed rose by 1.9% between February and March to 334,700. It’s up 9.5% in the last year while the labor force participation rate has declined by 0.8%.
LOCAL STRUGGLES: Job growth is also down in all but three of the state’s metro areas compared to March 2025, according to preliminary data from IDES. The Champaign-Urbana region has seen job growth for 14 consecutive months while Lake County is on a four-month job creation streak. The Quad Cities region hasn’t seen movement either way year to year.
Springfield has been hardest hit with a 3%, or 3,300, decrease in the number of jobs over the last year, followed by a 1.7% decrease in Decatur.
METRO UNEMPLOYMENT: Nearly all regions have seen unemployment increase by about a point in the last year. Kankakee and Decatur are tied for the highest unemployment rate of the state’s metro areas at 6.6%. But it’s risen fastest in Kankakee where a year ago it was 1.2 points lower at 5.4%.
The Bloomington-Normal region is home to the lowest metro unemployment rate in the state at 4.5%, though it has increased by 0.9 points since last March. The Chicago area’s unemployment rate has remained relatively stable year-to-year, increasing by just 0.1 points to 5% since last March.
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