3/25/2008 EMPLOYMENT TRENDS IN ILLINOIS. Nonfarm Employment Change in Nonfarm Employment by Decade
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1 Voices for Illinois Children Symposium, March 28, 28 Paul Kleppner, Ph.D. Office for Social Policy Research Northern Illinois University EMPLOYMENT TRENDS IN ILLINOIS 7 Nonfarm Employment ployees (in s) Emp Since 195 Illinois nonfarm employment has increased by over 2.8 million (88.4%) yees (in s) Employ Change in Nonfarm Employment by Decade The number of nonfarm employees increased in each decade between 195 and 2. The slowest growth occurred in the 198s of only 9.%. Between 2 and 27, nonfarm employment dropped by 6,5 (-1.%). 1
2 Labor Force Participation Rate All 65.7% 69.7% 67.4% Gender Male 79.7% 77.3% 75.4% Female 52.9% 62.8% 59.8% Age yrs 68.8% 8% 67.8% 58.8% 8% yrs 78.8% 85.4% 84.1% 55 yrs and older 38.5% 35.2% 38.2% Race / ethnicity White 66.5% 69.9% 67.6% African-American 57.8% 65.2% 62.% Hispanic 72.% 74.9% 72.3% Source: EPI analysis of CPS data Number unemployed hit 42,566 in January 28, highest since June 25. Unemployment rate of 6.2% also highest since June 25. Number Unemployed Num mber Unemployed 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, Number unemployed hit 42,566 in Jan 8, highest since June 25. Unemployment rate of 6.2% also highest since June 25. Number Unemployed January 27 January 28 r Unemployed Numbe 45, 4, 35, 3, 25, 2, 15, 1, 5, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Unemployment rate of 6.2% also highest since Jun 5 2
3 Number Em mployed (in s) Illinois Employment Patterns 199 and % Percent Change in Employment % 2% % -2% -4% Employment in s Changes in Employment Between 199 and 27 Manufacturing sector lost 239, jobs (a 26% decline). Service jobs increased by 768,6 (a 35% increase). 3
4 Employment Change ,5 3, n s) Employees (in 2,5 2, 1,5 1, 5 Mfgr Service Service Industries: Patterns of Growth 1,8 1,6 1,4 HW Serv LW Serv ees (in s) Employe 1,2 1, High Wage service industries added 326,2 jobs (3% growth) while Low Wage service industries added 442,4 jobs (39% growth). Growth Patterns in Service Activities 1,8 1,6 1,4 es (in s) Employee 1,2 1, HW Serv LW Serv
5 199 Employment Pattern 17% Manufacturing - 17% 44% 19% High Wage Service - 19% Low Wage Service - 2% 2% Others - 44% 27 Employment Pattern 1% Manufacturing - 1% 43% 22% High Wage Service - 22% Low Wage Service - 25% 25% Others - 43% Change in Wages Average Weekly Wages 21 Average Weekly Wages Wages Change in In 7 Real Dollars Dollars Construction $963 $1,256 $1136 $12 Manufacturing $65 $681 $714 -$33 Transportation & Utilities $522 $633 $616 $17 Wholesale Trade $598 $681 $76 -$25 Retail Trade $316 $356 $373 -$17 Information $733 $752 $865 -$113 Financial Activities $568 $696 $67 $26 Prof & Bus Services $585 $659 $69 -$31 Ed & Health Services $465 $556 $549 $7 Leisure & Hospitality $222 $255 $262 -$7 Other Services $424 $49 $5 -$1 5
6 15 Change in Real Wages Chan nge in $s Construction Manufacturing Transportation & Utilities Wholesale Trade Retail Trade Information Financial Activities Prof & Bus Services Ed & Health Services Leisure & Hospitality Other Services Growth in High Wage Services , 3, 34,9 25, 2, 181,1 15, 1, 5, 37,1-5, -15,8 Information Financial Activs Prof & Bus Servs Admin & Supt Prof & Business Services added 34,9 jobs, 93% of total HW growth. Admin & Support services added 181,1 jobs, 59% of total P&B growth. Average weekly earnings in Administrative & Supt was $458 (industry average $659). Growth in Low Wage Services ,9 145,6 53,9 Ed & Health Services Leisure & Hospitality Other Services 6
7 Major Contributors to Growth 23,6 116,2 35,9 Hlth Care & Soc Assist Accom & Food Serv Relig, Civic etc Organ Differences in Average Weekly Wages: Industry vs. Major Growth Contributor ($18) ($95) ($62) Ed & Health Services Leisure & Hospitality Other Services Within each industry, the subsector driving growth pays weekly wages below the industry average. Shares of Household Income tal Income Percentage of Tot Lowest Second Third Fourth Highest Top 5% Source: U.S. Census Bureau, Historical Tables 7
8 Mean Household Income $35, $3, $25, $s) (Constant 26 $2, $15, $1, $5, $ Lowest Second Third Fourth Highest Top 5% Source: U.S. Census Bureau, Historical Tables 6.% Shares of Household Income Illinois 26 5.% 5.5% tal Income Percent of Tot 4.% 3.% 2.% 14.4% 22.9% 22.7% 1.% 3.4% 8.8%.% Lowest Second Third Fourth Highest Top 5% Source: Analysis of CPS March 27 35, Mean Household Income Illinois 26 3, 25, 6 $s Income in 2 2, 15, 1, 5, Lowest Second Third Fourth Highest Top 5% Source: Analysis of CPS March 27 8
9 Health Insurance and Pension Coverage 27 8.% 7.% Hlth Ins Pension 6.% 5.% 4.% 3.% 2.% 1.%.% All Workers Dur Mfgr Nondur Mfgr Admin & Supt Hlth & Soc Accom & Food Other Services Source: Analysis of CPS March 27 Except for the Health Care & Social Assistance subsector, most of the jobs in the other fastest growing service subsectors do not offer employer-provided health insurance or pension plans. 9
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