Short-term. Long-term. No matter how you slice it, Illinois’ manufacturing sector is in trouble.
Manufacturing jobs hit a new low for 2023, down 7,800 this year and well off its peak of 570,700 jobs in January, according to the U.S. Bureau of Labor Statistics. And unlike most of our neighbors, Illinois has failed to capitalize on the overall recovery in manufacturing since 2010.
In fact, Illinois has added just 7,600 manufacturing jobs in the last 13 years while neighbors like Kentucky added 54,000 jobs and struggling Michigan added 142,000 workers, nearly 20 times that of Illinois.
Illinois’ toxic combination of high taxes, anti-business environment, the nation’s-worst credit rating and overall failed governance continue to cripple its manufacturing sector.
Struggling manufacturing
Illinois once had over 900,000 manufacturing jobs in 1990. That number has collapsed to fewer than 600,000 today.
Since 2010, there has been a recovery in manufacturing across the country. Unfortunately, Illinois has been unable to capitalize on the overall 13 percent growth in manufacturing jobs nationally, growing a meager 1 percent over that timespan.
By comparison, states like Montana and Idaho have seen their small manufacturing sectors grow significantly, gaining more than 30 percent over the last 13 years. Nevada is the big winner, with its 38,000 manufacturing jobs in 2010 growing to more than 70,000 in 2023 – a growth of more than 80 percent.
Other states with fewer manufacturing jobs have been outperforming Illinois as well since 2010. For example, both Tennessee and Florida have grown via adding 72,800 and 113,100 manufacturing jobs, respectively, over that time. And nearby Ohio, up 12 percent overall, has managed to extend its lead over Illinois by adding 68,500 more manufacturing jobs.
Illinois’ problems are not a Rust Belt issue. All of Illinois’ neighbors have greatly outperformed the Prairie State’s 1 percent growth since 2010: Michigan is up 31 percent, Kentucky 26 percent, Indiana 23 percent, Missouri 18 percent, Iowa 15 percent, Wisconsin 13 percent.
Decline since 2019
Gov. J.B. Pritzker’s recent speech to Crain’s was full of optimism for Illinois’ jobs climate. But the reality is far different – as we wrote here. Manufacturing, in particular, has suffered.
Since the governor took office in 2019, Illinois manufacturing has lagged both nationally and regionally. While the nation is up 1 percent over that timespan, Illinois is down 4.7 percent, the 7th-worst showing nationally.
Some of Illinois’ neighbors like Wisconsin and Indiana are down as well, but only Michigan has suffered a worse jobs loss than Illinois at 5 percent. Manufacturing jobs in Iowa, Kentucky, and Missouri were all grew.
Illinois’ neighbors are cutting taxes and making their states more attractive to businesses. Their manufacturing sectors are growing back naturally as a result.
Illinois should do the same. If not, Illinois’ manufacturing struggles will continue.