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Announcement – Thursday, September 17, 2026
Unemployment Rate Falls and Payrolls Down in August
Contact: Rebecca Cisco | 217-524-1219
SPRINGFIELD – The Illinois Department of Employment Security (IDES) announced today that the unemployment rate was 4.7 percent in August, down -0.2 percentage point from July, and up +0.4 percentage point from the same month, one year ago, based on data provided by the U.S. Bureau of Labor Statistics (BLS). The revised July unemployment rate was 4.9 percent.
Total nonfarm payrolls decreased over-the-month in August, down -4,400 (-0.1%) to 6,175,600. The July monthly change in payrolls was revised from the preliminary report, from +11,700 to +15,300. The August payroll jobs estimate and unemployment rate reflect activity for the week including the 12th.
The industry sectors with the largest monthly payroll jobs increases included: Leisure and Hospitality (+1,800), Construction (+1,500), and Professional and Business Services (+1,000). The sectors with the largest over-the-month jobs decreases included: Private Education and Health Services (-6,100), Financial Activities (-1,700), and Trade, Transportation and Utilities (-1,000).
Compared to a year ago, total nonfarm payroll jobs were up +15,000 jobs. The industry groups with the largest jobs increases included: Construction (+13,400), Private Education and Health Services (+9,600), and Other Services (+4,000). The industry groups with the largest jobs decreases included: Financial Activities (-15,800), Information (-2,900) and Trade, Transportation and Utilities (-700). In August, total nonfarm payrolls were up +0.2% over-the-year in Illinois and up +0.4% in the nation.
“While Illinois continues to add jobs over the year, August’s report reflects the uncertainty workers and employers face from the federal governments inconsistent trade policies,” said Deputy Governor Andy Manar. “Those policies are making it harder for businesses to plan and invest with confidence. While Washington creates instability, Illinois will remain focused on supporting employers, preparing workers for good-paying jobs and strengthening our economy for the long term.”
“The monthly unemployment rate is one of many factors DCEO relies on to understand labor market dynamics and inform the work we do to support business development and job growth in all regions of the state,” said DCEO Director Kristin Richards. “The decline in the unemployment rate from August coupled with positive payroll growth year-over-year is data that reinforces why the state must continue investing in workforce programming and remain focused on supporting key sectors, many of whom are facing economic headwinds resulting from inconsistent federal policies affecting supply chains and trade.”
The number of unemployed persons in August was 306,800, down -2.8% from July, and up +8.1% over the same month one year ago. The labor force was down -0.3% from July and down -1.3% over-the-year. The unemployment rate identifies those individuals who are out of work and seeking employment. An individual who exhausts or is ineligible for benefits is still reflected in the unemployment rate if they actively seek work.
IDES helps connect jobseekers to employers who are hiring in a number of ways, including hosting and co-hosting job fairs and hiring events with statewide workforce partners, and through maintaining Illinois JobLink (IJL), the state’s largest job search engine. IJL is a tool used by jobseekers to look for work, and by employers who can post open and available positions for hire and browse resumes. Recently, IJL showed 59,629 posted resumes with 76,517 jobs available. Additionally, in partnership with IDOL and DCEO, IDES published resources to assist federal employees and contractors impacted by recent terminations or deferred resignations.
Seasonally Adjusted Unemployment Rates
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| Aug-26 | Jul-26 | Aug-25 | 3-month Average | Over-the-Month Change | Over-the-Year Change |
|---|
Illinois Seasonally Adjusted Nonfarm Jobs - by Major Industry
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| | Aug-26 Current * | Jul-26 Revised ** | Aug-25 Year Ago | Over-the-Month Change | Over-the-Year Change | 3-month Avg | Change from Previous 3-month Moving Avg |
|---|
*Preliminary | **Final
Disclaimer on statewide data: The data contained in the statewide press releases are seasonally adjusted, which eliminates seasonal fluctuations in monthly employment data. Many economic data series have seasonal patterns, which means they tend to occur at the same time each year. For example, construction employment declines in winter, tourism employment rises in summer, and retail employment peaks in January. Seasonal adjustment helps to describe the underlying economic trends in the monthly data. When data are seasonally adjusted, as are the data in this release, the seasonal adjustment permits comparisons of data from one month to the next (January 2026 data compared to December 2025 data).
About the Department of Employment Security
The Illinois Department of Employment Security (IDES) provides vital employment services to Illinois workers, jobseekers, and employers with resources including Job Fairs, IllinoisJobLink.com, and WorkShare IL, analyzes and disseminates actionable Labor Market Information, and administers the Unemployment Insurance Program. To see the full range of services provided by IDES, and for the latest news concerning the department, visit IDES.Illinois.gov.