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Saturday, October 5, 2024

Illinois sees rise in unemployment; House Republicans introduce job-friendly legislation

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State Representative Michael Coffey (IL) | Representative Michael J. Coffey, Jr. (R) 95th District

State Representative Michael Coffey (IL) | Representative Michael J. Coffey, Jr. (R) 95th District

The Illinois Department of Employment Security (IDES) reported an increase in unemployment for May 2024, rising from 4.8% to 4.9%. This increase included net job losses in the Manufacturing sector (down 2,300 jobs) and Leisure/Hospitality sector (down 1,200 jobs). The state's unemployment rate was notably higher than the national average of 4.0%.

Despite these figures, other sectors experienced job growth. Professional and Business Services saw a net increase of 7,100 jobs, while Government added 3,300 new positions. Overall, Illinois employers created a net total of 12,700 new jobs in May 2024. However, this figure contrasts with the 317,400 individuals reported as unemployed and actively seeking work during the same period. Unemployment rates were particularly high in Downstate Illinois regions such as Danville, Kankakee, and Rockford.

In response to these trends, House Republicans have established the Reigniting Illinois’ Strong Economy (RISE) working group. Led by Representative Dan Ugaste, RISE introduced legislation aimed at fostering job creation in the state. Representative Ugaste discussed these issues on the RISE podcast.

Additionally, Illinois will implement another motor fuel tax increase on July 1. The tax on gasohol will rise from 45.4 cents per gallon to 47 cents per gallon—a significant jump from just five years ago when it was only 19 cents per gallon. The diesel fuel tax will also see an increase.

Illinois' motor fuel tax is designated for transportation purposes but includes non-highway expenditures like passenger trains and city buses. Neighboring states such as Indiana have significantly lower motor fuel taxes.

The Illinois High School Association (IHSA) has approved the use of a shot clock for varsity basketball games starting in the 2026-27 season. Teams will have 35 seconds to complete an offensive play or face a buzzer warning. The mandate will not initially apply to junior varsity or lower-level games but may be adopted over time.

A new law has established the Springfield-based Illinois Department of Early Childhood (IDEC), which will become operational over the next two fiscal years following its signing on June 25. IDEC will oversee programs currently managed by various state agencies including ISBE, IDHS, and DCFS.

Under this new legislation, DCFS will relinquish supervision of day care centers and homes to IDEC—potentially easing its current workload. IDEC aims to prevent deprivation among young children within at-risk families through early education and intervention services.

The transition period for transferring responsibilities to IDEC is set for completion by July 1, 2026. Initial startup costs amounting to $14 million have been appropriated by the General Assembly for hiring executive staff and establishing office spaces.

House Republicans expressed concern about the lack of detailed cost information provided before passing the bill creating IDEC; nevertheless, it passed with a vote tally of 93-18-0.

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