Unemployment rate declines in Chicago metro area in July

CHICAGO, Aug. 26 (NsNewsWire) — U.S. third largest city Chicago metro area saw its unemployment rate decline in July compared to the same period last year, according to preliminary data from the Illinois Department of Employment Security(IDES).

The data released Thursday shows unemployment rate fell to 4.8 percent from 6 percent a year ago, the lowest rate for July since 2006. The numbers are not adjusted to take into account seasonal fluctuations in hiring, reports Xinhua.

Meanwhile, the Chicago metro area added 23,800 jobs over the year, a growth rate of 0.6 percent, far less than the 1.5 percent national average for July.

Most of the growth was in financial activities, professional and business services, information and leisure-hospitality. Construction and government lost the most jobs in the Chicago metro area.

“The rate of job growth has lessened in most metros that showed gains,” IDES Director Jeff Mays said in a news release. “While the gains in the Chicago area over the past year are promising, the drop in the unemployment rate is mostly due to the decline in the labor force.”

The unemployment rate measures people who are not working but are looking for work, so it can decline as people give up looking because they are frustrated. The labor force also declines when people stop working to retire, go to school or go on disability.

But the unemployment rate for the state of Illinois is up 0.1 percentage point to 4.8 percent in July. The state revised its June job growth data, indicating Illinois gained 6,400 jobs rather than its original estimate of 8,600. Enditem