Illinois adds 3,000 jobs but unemployment higher at 11.5 percent in March

Illinois sees job growth, but higher unemployment

CHICAGO — The jobless rate in Illinois rose slightly to 11.5 percent in March and the state was ranked 9th nationally for its foreclosure rate in the first three months of the year, according to data released Thursday that economists say indicate the state’s recovery is sluggish at best.

But state officials say there are signs the economy is improving.

The Illinois Department of Employment Security said the state added 3,000 jobs in March, the third consecutive month that Illinois saw job growth. However there still were 765,000 people out of work.

The 11.5 percent seasonally adjusted unemployment rate in Illinois was a tenth of a percentage point higher than in February, but 2.3 percentage points higher than March 2009. The seasonally adjusted national unemployment rate for March was 9.7 percent.

“It is not surprising that Illinois simultaneously would experience job creation and slight increases in the unemployment rate,” IDES director Maureen O’Donnell said, adding that she is cautiously optimistic the recession may be softening. “As jobs are created, people become more encouraged about their ability to find a job and therefore re-enter the workforce.”

But the uptick in unemployment coupled with a stubbornly high home foreclosure rate makes Northeastern Illinois University economics professor Edward Stuart question whether the state is coming out of the recession at all.

“Even though the stock market has recovered and businesses are doing a bit better this is still a deep, deep recession that needs another push behind it,” Stuart said.

Illinois’ home foreclosure activity was almost 17.5 percent higher in the first quarter of 2010, compared to the same period last year, but 4.6 percent lower than the last quarter of 2009, according to Irvine, Calif.-based RealtyTrac. Illinois had 45,780 foreclosure filings in the first quarter of 2010. Filings include default notices, auction-sale notices and bank repossessions.

The state’s first-quarter foreclosure rate — one in every 115 homes — was 9th highest in the nation.

University of Illinois economist Fred Giertz says the new numbers show Illinois is sluggish in emerging from the recession.

“The recession is very likely over, but Illinois is not among the leaders for recovery,” Giertz said. “We’re better off than we were. The worst is behind us, but again it’s going to be a long recovery.”

On the Net:

Illinois Department of Employment Security: www.ides.state.il.us