Payroll Jobs Increase, Unemployment Rate Ticks Up in January

Illinois added 18,000 payroll jobs in January

Rebecca Cisco - State of Illinois

Apr 6, 2026 9:40 AM

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SPRINGFIELD – The Illinois Department of Employment Security (IDES) announced today that the unemployment rate was 4.9 percent in January, up +0.2 percentage point from December, and up +0.2 percentage point from the same month, one year ago, based on data provided by the U.S. Bureau of Labor Statistics (BLS). The revised December unemployment rate was 4.7 percent.

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Total nonfarm payrolls increased over-the-month in January, up +18,000 (+0.3%) to 6,166,800, and the largest monthly increase since June 2023. The December monthly change in payrolls was revised from the preliminary report, from +11,800 to +11,600. The January payroll jobs estimate and unemployment rate reflect activity for the week including the 12th.

The industry sectors with the largest over-the-month jobs increases included: Construction (+13,500), Manufacturing (+8,400), and Trade, Transportation and Utilities (+1,800). The industry sectors with the largest monthly payroll jobs decreases included: Private Education and Health Services (-3,500), Financial Activities (-800), and Other Services (-700).

Compared to a year ago, total nonfarm payroll jobs were up +7,900 jobs. The industry groups with the largest jobs increases included: Private Education and Health Services (+18,300), Construction (+14,000) and Government (+2,900). The industry groups with the largest jobs decreases included: Professional and Business Services (-12,300), Trade, Transportation and Utilities (-10,000), and Leisure and Hospitality (-3,300). In January, total nonfarm payrolls were up +0.1 percent over-the-year in Illinois and up +0.2 percent in the nation.

“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. We remain focused on maintaining stability and supporting continued job growth across the state.”

"Investing in our state's workforce and economic development initiatives are foundational to DCEO's mission" said DCEO Director Kristin Richards. "The State is committed to creating opportunities for hard working Illinoisans that help us build a strong and sustainable economic ecosystem."

The number of unemployed persons in January was 318,700, up +3.5% from December, and up +1.3% over the same month one year ago. The labor force was almost unchanged (0.0%) from December and down -1.2% over-the-year. The unemployment rate identifies those individuals who are out of work and seeking employment. An individual who exhausts or is ineligible for benefits is still reflected in the unemployment rate if they actively seek work.

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IDES helps connect jobseekers to employers who are hiring in a number of ways, including hosting and co-hosting job fairs and hiring events with statewide workforce partners, and through maintaining Illinois JobLink (IJL), the state’s largest job search engine. IJL is a tool used by jobseekers to look for work, and by employers who can post open and available positions for hire and browse resumes. Recently, IJL showed 53,267 posted resumes with 73,269 jobs available. Additionally, in partnership with IDOL and DCEO, IDES published resources to assist federal employees and contractors impacted by recent terminations or deferred resignations.

Seasonally Adjusted Unemployment Rates

Illinois Seasonally Adjusted Nonfarm Jobs – by Major Industry

Monthly 2021-2025 seasonally adjusted labor force data for Illinois, and all other states, have been revised as required by the U.S. Bureau of Labor Statistics (BLS). The monthly historical revisions to state labor force estimates reflect new national benchmark controls, state working-age population controls, outlier specifications, seasonal factors, as well as updated total nonfarm jobs and unemployment benefits claims inputs. Illinois labor force data were also smoothed to eliminate large monthly changes as a result of volatility in the monthly Current Population Survey (CPS) and national benchmarking. For these reasons, the comments and tables citing unemployment rates in previous news releases/materials may no longer be valid.

Monthly seasonally adjusted unemployment rates for Illinois and the Chicago-Naperville-Schaumburg Metropolitan Division are available here.

Monthly 2021-2025 seasonally adjusted nonfarm payroll employment data for Illinois have been revised. To control for potential survey error, the estimates are benchmarked annually to universal counts derived primarily from unemployment insurance tax reports.
Not seasonally adjusted jobs data with industry detail are available here. “Other Services” include activities in three broad categories: personal and laundry; repair and maintenance; and religious, grant making, civic and professional organizations. Seasonally adjusted data for subsectors within industries are not available.

About the Department of Employment Security

The Illinois Department of Employment Security (IDES) provides vital employment services to Illinois workers, jobseekers, and employers with resources including Job Fairs, IllinoisJobLink.com, and Workshare IL, analyzes and disseminates actionable Labor Market Information, and administers the Unemployment Insurance Program. To see the full range of services provided by IDES, and for the latest news concerning the department, visit IDES.Illinois.gov.

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