Illinois Market Analysis - 2025

1. Unemployment Rate Trends

As of fall 2025, Illinois’ unemployment rate remains near recent lows, reflecting a relatively stable labor market:

• September 2025 unemployment: 4.4%, down 0.6 percentage points from a year ago. USAFacts

• Local estimates (Joint Economic Committee) show unemployment around 4.5% in November/December 2025. Joint Economic Committee

  
  

While this rate is slightly higher than the national average, it still indicates moderate labor market health, with many regions experiencing employment gains. USAFacts

2. Labor Force Activity

• Illinois’ labor force participation rate has stayed above the U.S. average, around 64.6%, while the national rate was about 62.2%. Joint Economic Committee

• The number of unemployed people actively seeking work (around 287,000 in fall 2025) is lower than earlier in the year, showing improvement. IDES

  
  

This means more workers are finding employment or leaving the workforce due to new jobs or personal decisions, resulting in lower unemployment figures and a tighter labor market.

3. Employment Levels & Sectors

According to BLS “Economy at a Glance” data:

• Civilian labor force and employment in Illinois have slightly declined month-to-month but remain high overall. Bureau of Labor Statistics

• Non-farm employment remains strong with modest year-over-year gains, indicating stability in overall job counts. Bureau of Labor Statistics

  
  

In mid-2025, payroll employment reached record highs, showing continued expansion in several key sectors like education & health services and government, although some industries (e.g., manufacturing and professional services) saw declines. IDES

4. Regional Variations Within Illinois

Unemployment varies significantly across counties:

• Highest rates were seen in areas like Alexander County (~7.7%) and Pulaski (~6.9%).

• Lower unemployment was reported in Brown County (~3.2%) and other smaller counties. USAFacts

  
  

Urban and metro regions such as Cook County have slightly higher rates compared with some rural or suburban areas due in part to differing industry compositions and labor demand. USAFacts

5. Job Growth & Business Climate

Illinois has made strides in improving its business environment and workforce readiness:

• A 2025 CNBC ranking placed Illinois 13th best state for business, up significantly from prior years. The Telegraph

• This improvement reflects investment in workforce development, infrastructure, and education, factors that support future labor market strength. The Telegraph

  
  

However, challenges remain. Historical analyses note that Illinois’ private sector job growth has lagged relative to national trends, with some periods showing net declines without counting government employment increases. Jacksonville Journal-Courier

6. Underemployment and Workforce Factors

Expanded unemployment measures (e.g., U-6) show that underemployment remains an issue with workers in part-time jobs for economic reasons and marginally attached workers still affecting overall market dynamics. Bureau of Labor Statistics

This highlights that job quality and full-time opportunities are as important as headline unemployment rates for understanding labor market health.

Summary: What This Means for Illinois Hiring

Positive Signs

• Stable unemployment near historic lows

• Strong participation rate

• Record payroll totals in key sectors

• Improved business climate and workforce rankings

Ongoing Challenges

• Regional disparities in job growth

• Certain sectors under performing (e.g., manufacturing)

• Underemployment and part-time work for economic reasons

Overall, Illinois’ labor market in 2025 reflects strength with areas of caution, offering opportunity for job seekers and employers, while highlighting the need for targeted training, sector diversification, and strategic workforce planning.