Illinois Adds 18,000 Jobs in January Despite Unemployment Rise

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Illinois' unemployment rate rose slightly to 4.9% in January, up 0.2 percentage points from the previous month. However, the state added 18,000 new nonfarm payroll jobs during the month, the largest monthly gain in over six months. Construction, manufacturing, and trade, transportation and utilities were the sectors that led the hiring surge, offsetting losses in private education, health services, financial activities, and other services.

Why it matters

The rise in Illinois' unemployment rate, despite strong job growth, suggests a complex economic picture for the state. While employers are adding jobs at a healthy clip, particularly in key industries like construction and manufacturing, the labor force participation rate may not be keeping pace, leading to an uptick in the jobless rate.

The details

According to data from the Illinois Department of Employment Security, the state's total nonfarm payroll employment grew by 18,000 jobs in January, a 0.3% increase that marked the largest monthly gain since June 2023. Construction led all industries with 13,500 jobs added, followed by manufacturing with 8,400 new positions and trade, transportation and utilities, which gained 1,800 jobs. However, these gains were partially offset by job losses in private education and health services (-3,500), financial activities (-800) and other services (-700).

• Illinois' unemployment rate increased to 4.9% in January, up 0.2 percentage points from December and 0.2 points higher than January 2025.
• Illinois added 18,000 nonfarm payroll jobs in January, the largest monthly gain since June 2023.
• Revised figures show Illinois added 11,600 jobs in December, slightly fewer than initially reported.