State unemployment above U.S. average
The Illinois unemployment rate in August rose to 5.4 percent, up 0.9 percentage points from the year-earlier 4.5 percent, the Bureau of Labor Statistics reported.
According to the bureau's Metropolitan Area Employment and Unemployment Summary released Tuesday, out of 34 metropolitan divisions, the Chicago-Napervillle-Joliet division reported the largest year-over-year unemployment increase, to 5.3 percent from 4.4 percent, or 0.9 percentage point.
Bureau of Labor Statistics Branch Chief Paul LaPorte said this year's unemployment increase is not cause for major concern.
Despite the rise in unemployment, the Illinois Department of Employment Security reported last week that 46,900 new jobs werecreated inthe state over the year. The Chicago-Naperville-Joliet division boasted an additional 29,500 jobs since August 2006.
Illinois topped the Bureau of Labor Statistics' Midwest unemployment chart with more than 363,000 unemployed. Illinois continues to lag behind the national unemployment rate, which remains unchanged since last August at 4.6 percent.
Stan Smith, president of Smith Economics Inc. in Springfield, said the state's business environment remains unfavorable because the number of jobs created did not take into account the number of job seekers.
"It's good but it's not enough," Smith said. "The unemployment rate is still the principal figure that shows we have not created enough jobs."
According to LaPorte, the Chicago metropolitan area experienced "two bright spots," in professional and business services and education and health services.
Professional and business services increased their work force by 15,000 jobs, or 2 percent, comparedto the 1.5 percent increase at the national level. Additionally, education and health services increased 1.8 percent, or 10,000 jobs, over the year.
"The only major downturn was in the manufacturing sector over the year," LaPorte said.
LaPorte said the Chicago metropolitan area lost 4,600 manufacturing jobs, a 0.9 percent decline, over the year, comparedto a 1.4 percent decline in nationwide manufacturing jobs.