Illinois Unemployment Rate At 7.3% - Will This Dampen Housing Market Recovery Here?
FIFTH CONSECUTIVE MONTH FOR UNEMPLOYMENT RISE - NOW OVER U.S. AVERAGE!
Although I have no scientific evidence to back this up, it would seem that those concerned about losing their job may be a bit hesitant to write an earnest money check for their new home.
Indeed, the State of IL showed a 5.8% increase in the statewide unemployment rate in October. Currently, the measured jobless rate in IL, according to the Illinois Department of Employment Security, surged to 7.3% in October, versus 6.9% last September.
The Construction Sector evidenced the most significant drop, losing 4,100 construction-related positions and reducing overall employment in activities related to construction to 254.500. A total of 15,200 construction jobs have been lost in IL within the past year, and 7,400 of those jobs dried up within the past two months.
Statewide population continues to grow, so Illinois must generate thousands of new jobs each month just to absorb a growing work force.
Across the U.S. unemployment jumped to its highest level in 14 years, to 6.5% in October, according to U.S. Labor Department statistics released earlier this month. With nationwide recession growing deeper, many experts feel the jobless rate in the U.S. could exceed 8% before the end of next year.
Illinois has always had a large base of manufacturing, commercial, and financial employment. Locally,the job market in Illinois and Chicago has been negatively impacted by slowing demand for goods, reduced purchasing power due to the turmoil in the credit markets, declining retail sales, fewer exported goods, and a sizable drop in residential construction.
Says Maureen O'Donnell, Director of the Illinois Department of Employment Security, "Although Illinois has a diverse economy, the national economic slowdown has had a negative effect on Illinois unemployment and thus we need federal government assistance with an investment in infrastructure and additional stimulus to help create jobs."
It would appear that such an unsettled employment situation here in IL might give many pause before they attempt to sell their current home, or buy a new one. This could create an indirect, although significant impact on the Housing Market Recovery in Chicago and across the state.
See James P. Miller's article in yesterday's Chicago Tribune for more info.
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