Illinois Unemployment Rate Rises to 4.9% in January

Effingham's News and Sports Leader reports on the latest state jobless figures.

Apr. 2, 2026 at 9:38pm

Got story updates? Submit your updates here. ›

A minimalist abstract illustration using bold geometric shapes and primary colors to conceptually represent economic data, without any literal text or imagery.Illinois' unemployment rate ticks up, but job gains in key sectors offer economic optimism.Effingham Today

The Illinois unemployment rate increased to 4.9% in January, up from 4.7% in December and the same month a year prior. Total nonfarm payrolls also saw a significant increase of 18,000 jobs, the largest monthly gain since June 2023, with the construction, manufacturing, and trade/transportation/utilities sectors leading the way.

Why it matters

The state's unemployment rate is a key economic indicator that provides insight into the overall health of Illinois' job market. This latest uptick, while modest, could signal a potential slowdown or shift in the state's economic recovery from the pandemic.

The details

According to the report, the number of unemployed persons in Illinois rose 3.5% from December to 318,700, a 1.3% increase over the same period last year. The largest job gains were seen in the construction, manufacturing, and trade/transportation/utilities sectors.

  • The Illinois unemployment rate for January 2026 was 4.9%.
  • The December 2025 unemployment rate was 4.7%.
  • The January 2025 unemployment rate was also 4.7%.

The players

Illinois

The state of Illinois, where the unemployment data was reported.

Got photos? Submit your photos here. ›

The takeaway

While the rise in Illinois' unemployment rate is modest, it bears watching to see if this is an isolated uptick or the start of a broader economic slowdown in the state. The job gains in key sectors like construction and manufacturing provide some optimism, but the overall trend will need to be closely monitored in the coming months.