Sangamon Sun

Illinois lost more than 420,000 jobs in 2020, making it the worst year on record for jobs in the state, the Illinois Policy Institute reported.

The state lost a total of 423,300 jobs due to COVID-19 restrictions. Half of those jobs were in the leisure and hospitality sectors. 

Because of the pandemic restrictions, the state saw 6.9 percent of its jobs disappear. They were felt in every sector aside from construction. The construction sector saw a surge in December that allowed it to recoup the year’s losses.

Sectors lost between 1,000 and 198,100 jobs in 2020, with leisure and hospitality losing 198,100, or 32 percent of jobs, according to data from the Illinois Department of Employment Security.

From mid-November to mid-December the state only saw 2,500 jobs lost and the national economy lost 140,000 jobs, making it the first month of national job losses since April.

“Although it looks like there may be some hope with a COVID-19 vaccine being dispersed, Illinois still has a painful economic recovery ahead,” the report noted. “Making matters worse for already-struggling businesses, Gov. J.B. Pritzker is continuing to pursue new taxes, even after voters soundly rejected his progressive income tax hike Nov. 3.”

Pritzker now wants to raise revenue by decoupling the pandemic recovery tax credit for small businesses, which would leave small businesses on the hook for the money but would bring in between $500 million and $1 billion in revenues for the state. The legislation did not cancel the credit during the lame-duck session, but Pritzker said he would push for it again in March.

The policy institute says the state can improve its finances by providing core services and should implement constitutional pension reform.

“Instead of just throwing more money at pension debt and deficits, constitutional pension reform and the Taxpayer Protection Act would offer overburdened Illinois taxpayers a path to declining debt, lower taxes and more effective state government,” the report notes. “The measures would build a more sustainable recovery – rather than posting more historic job losses.”