Payroll Jobs Rise in Illinois as Unemployment Rate Edges Up in January (Springfield, IL) – Illinois saw a strong increase in payroll jobs in January, even as the state’s unemployment rate ticked upward, according to new data released by the Illinois Department of Employment Security (IDES).
The state added 18,000 nonfarm payroll jobs over the month, bringing total employment to 6,166,800—the largest monthly gain since June 2023. Despite the job growth, the unemployment rate rose to 4.9%, up 0.2 percentage points from December and the same time last year.
State officials pointed to mixed economic signals behind the report.
“January’s strong payroll growth demonstrates Illinois’ economic resilience, with gains in key sectors,” said Deputy Governor Andy Manar. “At the same time, the increase in the unemployment rate reflects ongoing federal uncertainty that is weighing on business investment and hiring decisions.”
Key Industry Gains and Losses
Job growth was led by several major sectors:
- Construction: +13,500 jobs
- Manufacturing: +8,400 jobs
- Trade, Transportation and Utilities: +1,800 jobs
However, some industries saw declines:
- Private Education and Health Services: -3,500 jobs
- Financial Activities: -800 jobs
- Other Services: -700 jobs
Year-Over-Year Trends
Compared to January 2025, Illinois added 7,900 jobs overall, reflecting modest annual growth.
Top gaining sectors included:
- Private Education and Health Services: +18,300
- Construction: +14,000
- Government: +2,900
Meanwhile, the largest declines were seen in:
- Professional and Business Services: -12,300
- Trade, Transportation and Utilities: -10,000
- Leisure and Hospitality: -3,300
Overall, Illinois job growth rose 0.1% year-over-year, slightly below the national increase of 0.2%.
Labor Force and Unemployment
The number of unemployed Illinois residents climbed to 318,700, an increase of 3.5% from December and 1.3% from a year ago. The state’s labor force remained largely unchanged month-to-month but declined 1.2% over the year.
Officials emphasized that the unemployment rate includes individuals actively seeking work, regardless of whether they qualify for unemployment benefits.
Workforce Support Efforts
IDES continues to connect job seekers and employers through initiatives like job fairs and its online platform, Illinois JobLink, which currently lists more than 73,000 available positions and over 53,000 resumes.
“Investing in our state’s workforce and economic development initiatives are foundational to DCEO’s mission,” said Department of Commerce and Economic Opportunity Director Kristin Richards. “The state is committed to creating opportunities for hardworking Illinoisans.”
Payroll Jobs Rise in Illinois as Unemployment Rate Edges Up in January
