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August 20, 2007

IL Manufacturing gains 1,600 jobs in July while state job losses mount

Following two months of static activity, Illinois manufacturers put an additional 1,600 workers on the line in July. The increase marks the highest employment level since November 2006.

"After eight months of disappointing jobs numbers, there is finally some good news for Illinois manufacturers," said Gregory W. Baise, president and CEO of the Illinois Manufacturers' Association. "Job growth and increased production numbers are always helpful to our state's economy."

However, Baise also observed that overall, manufacturing employment was down 2,200 over July 2006 and down more than 52,000 since January 2003.

Over the month, unemployment in Illinois reached 5.4 percent in July, the highest jobless rate for the state since February's 5.3 percent. Illinois' rate remains more than half a point above the nation's 4.6 percent rate. For the month, the state lost 11,500 jobs with five sectors losing more than 1000 jobs each; the largest being the 3,600 lost in trade, transportation and utilities and a seasonal loss of 4,500 in government jobs, most of which are attributable to summer vacations at schools and state universities.

"While state government tries to sugar-coat our job losses last month, the fact remains that our state's economy is not that strong," Baise said. "It's unclear just how well the Blagojevich administration's economic policies are working when our economy seems to bounce along month to month with no clear direction, our state debt is facing unprecedented levels and our governor makes no bones about telling employers to 'hit the road' unless we agree to his colossal new social programs and billions in new taxes."

Baise pointed out that a number of Illinois companies are actively considering moving to more business friendly states to expand their operations or relocate altogether; a move that will diminish employment opportunities for the state's workforce.

In fact, surrounding states all have lower unemployment rates except Kentucky who traditionally has higher rates than Illinois.

July 2007 Indiana 4.6% Kentucky 5.7% Missouri 5.0% Iowa 3.9% Wisconsin 5.0%

Source: U.S. Bureau of Labor Statistics

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