For Illinois and three other states, private-sector job creation has been unheard of in the 21st century.
“Illinois has not had a net gain in private-sector job opportunities in nearly 17 years,” Michael Lucci noted.
The situation for the state is bleak. Public-sector job growth remains flat, Illinois residents have left for better opportunities outside the state, and the legislature hasn’t made progress on repealing punitive regulations.
“The private sector is in need of relief from taxes, red tape and other government-imposed roadblocks in Illinois … Illinois’ labor market has cycled with national trends, but with greater job losses during recessions and weaker job gains during economic expansions,” Lucci wrote.
The burden of Illinois is a shared one. Ohio, Michigan, and Mississippi haven’t seen a higher number of jobs since January 2000, according to Bureau of Labor Statistics data.
All four states have struggled to attract more residents, with only modest increases in their population. The average growth rate for the 50 states and Washington D.C. between 2010 and 2015 was 4.1 percent. Illinois only saw a .23 percent gain, Ohio a .67 percent gain, Michigan a .39 percent gain, and Mississippi a .84 percent gain.
A larger population could spur jobs from increased talent and demand from new residents. However, the economic and political conditions in the states provide no incentive for anyone to move. Instead, Americans have fled to Texas, Florida, Arizona, and even California.
The recovery from the recession has been better. Michigan has grown by almost 17 percent in private-sector jobs since the recession, followed by Ohio with 12 percent, Illinois with 10 percent, and Mississippi with 8 percent. Long-run economic trends for those states, however, have been tepid, if not regressive.
The sluggish growth is a warning for other states to avoid overreaching. Americans vote with their feet. Cities can push out citizens (and businesses) with onerous regulations that make the frustration too much to bear. Over decades, those instances can build and cause states to stay in a rut, stifling the chance for economic growth.
The Midwest has born the brunt from economic shifts in recent decades. Job growth has been concentrated through the south and west, which magnified the problems Illinois, Ohio, and Michigan currently have. Regardless, that’s the situation Midwestern politicians have been dealt, and their policies have done little to assuage the difficulties their residents have.
