Since Governor J.B. Pritzker took office, the Illinois unemployment rate has averaged 5.4%, ranking as the third highest in the nation according to a recent analysis.
This finding comes from a study by the non-profit think tank, the Illinois Policy Institute (IPI), which analyzed U.S. Bureau of Labor Statistics (BLS) data from January 2019 through July 2026.
Comparative State Rankings and Pandemic Impact
According to the report, Nevada recorded the highest average unemployment rate at 6.4%, followed by California at 5.9%. Illinois tied with Michigan for the third-highest rate in the country at 5.4%.
High unemployment rates during the COVID-19 pandemic significantly impacted the average figures for this period. When Governor Pritzker first took office, the unemployment rate in Illinois stood at 4.6%.
Current unemployment figures also continue to outpace the national average. Data from the Illinois Department of Employment Security (IDES) shows that the seasonally adjusted unemployment rate in Illinois was 4.9% this past July, sitting 0.8 percentage points above the 4.1% national average.
The number of unemployed individuals reached approximately 315,700 in July, marking a 12.5% increase compared to the same period last year, while the labor force shrank by 1.0%. Although the July unemployment rate dropped by 0.2 percentage points from 5.1% in the previous month, it remained 0.6 percentage points higher than the 4.3% recorded in the same period last year.
Job Vacancies and Employment Growth Trends
Data indicates that job opportunities remain scarce relative to the number of active job seekers.
According to the U.S. Bureau of Labor Statistics, Illinois currently has roughly two job openings for every three unemployed workers. The state was identified as one of 15 nationwide where the number of unemployed individuals consistently exceeded job openings on average since 2019.
Nevertheless, conditions have improved compared to the aftermath of the Great Recession, when the state suffered more than seven unemployed workers for every single open position.
Job growth momentum has similarly lagged behind other states. Non-farm employment in Illinois grew by less than 1% between 2018 and 2025, placing the state 45th out of the 50 U.S. states according to the Illinois Policy Institute.
The institute cited population decline, a stagnant labor workforce, and heavy corporate tax burdens and regulations as primary factors hindering the Illinois job market. However, researchers noted that further analysis is required to establish direct causal links between these factors and the elevated unemployment rates.
