February saw a rise in the City of Chicago’s unemployment rate to 7.2 percent, and increase of .3 percent over last year. This explains why Mayor Rahm Emanuel is working so hard to bring jobs to the city.
One explanation for the rise comes from the Illinois Department of Employment Security. The IDES blamed the rise at least partly on the fact that more people are actively looking for jobs recently, as the economy seems to be improving.
The poor job situation is just one more crisis Emanuel has been dealing with lately. He has also been taking the heat for the high crime rate, the poor performance of the city’s schools, and the large pension debt, to name just three.
Businesses in Chicago have been feeling the pinch, and have expressed their unhappiness about the large property tax increase that arrived in Chicago this year to help alleviate the pension problem. There is a fear that this new tax could persuade some businesses to flee the city, or how much of a presence they choose to have in Chicago.
The greater Chicago metro area, including Naperville and Arlington Heights also saw a rise in unemployment: from 6.5 percent a year ago to 6.7 percent in February. The area ranks in first place of the 51 metro markets in the country with populations of one million or more with the highest unemployment rate, according to the US Bureau of Labor Statistics.
Las Vegas comes in second with a 6.5 percent rate of unemployment.
About 100 workers at the Sears Hoffman Estates headquarters have been laid off, according to Sears Holdings spokesperson Howard Riefs.
Riefs said that the giant retailer is struggling to streamline its operations with the goal of reduced expenses while still “managing the strategic needs of the business.”
“This represents a mix of positions in various departments across the organization,” Riefs added. “These decisions are never taken lightly, but they are a necessary part of our efforts to transform the company and return it to profitability. We are committed to treating these associates with respect and compassion during this process. Eligible associates will receive outplacement services and severance to assist in their transition.”
Sears has been experiencing pressure from Wall Street to reel in expenses since the company has been in the red in recent years. Sears Holdings Corporation has 20,000 les employees as compared to one year ago, and has been experiencing losses for two years as of today.
At the end of last year, there was an escalation in small business jobs in Chicago. However, the rate at which this grew was actually slower than last year. Still, by the end of 2015, there was a leveling out of jobs following on from the recession. Indeed, according to James Diffley, economist for IHS Global Insight, Chicago actually managed to “regain all the jobs it lost during the Great Recession.” Having said that Chicago (as well as throughout America), encountered a reduction in 2014 during the hiring peak that occurred when businesses bolstered employment after cutbacks caused by recession and business failures.
On the flip side, Chicago’s athletes are really bringing home the bacon. One example is Derrick Rose who plays for the Bulls. Last year he took home $35 million – $15m of which came from endorsement contracts. Furthermore, six out of the 25 highest earning professional athletes in Chicago made their debuts last year and Jon Lester, pitcher for the Cubs earned $155 million for the year. That was said to have been “the richest multiyear contract in Chicago sports history.”
Overall however, it seems that last year’s employment market in Chicago was a bit of a disaster. A combination of near-stagnant international growth, the aging population and collapsing oil prices were the cause of this. There was an average of 1 percent less in employment growth for a second consecutive year in 2015; a statistic that has only ever happened four times since 1945.