Small Businesses Losing Money as Revised Unemployment Numbers Underscore Challenging Economy for Illinois Families

The U.S. economy is showing signs of strain, with new data revealing fewer jobs added in 2023 and early 2024 than originally reported. The U.S. Department of Labor's revisions cut job growth estimates by 28 percent, while at the same time, July numbers show Illinois is now tied for the second-highest unemployment in the nation. Meanwhile, small businesses in the state are struggling more than ever, with many making less money than last year, as new tax hikes present additional challenges.

Recent data shows that job growth across the country hasn't been as strong as initially reported. The U.S. Department of Labor released revised job numbers on August 21, revealing that around 818,000 fewer jobs were created during the past year than originally thought. The revised numbers are a sign that fault lines in the labor market are deeper, and began shifting earlier, than previously known.

In Illinois, the situation is particularly difficult. The unemployment rate jumped to 5.2 percent in July, tying for the second-worst in the country. This means more than 341,000 people in Illinois are looking for work.

Job creators in Illinois are also feeling the pressure. A recent survey by Alignable found that 58 percent of small businesses are making less money than they did last year-a 7 percent increase from the previous month. To make matters worse, Illinois Governor J.B. Pritzker just signed nearly $1 billion in new tax hikes into law.

Across the country, 73 percent of small business owners say they're earning less than they did last year. Over 80 percent of these small businesses in industries like manufacturing, beauty salons, and real estate are seeing big drops in revenue, making it a challenging time for job creators everywhere.

This economic landscape paints a challenging picture for Illinois families. As the job market falters and new taxes take their toll, many families are finding it harder to make ends meet. The latest data is a stark reminder that the economy remains fragile, leaving many in Illinois uncertain about what the future holds.

Senate Republicans voted against the Governor's recent tax hikes, warning they will hamper job growth and raise costs for Illinois residents. We believe these tax hikes are driving more people and job creators to leave the state.