Yes, Virginia, you can get a job making things in Illinois

In 1988 there were 1.161 million people working in the goods producing sector (mining, manufacturing, construction) of the state's non-agricultural economy.
Source: U.S. Department of Labor.

But, Virginia, it ain't what it used to be

In 1979 there were 1.504 million people working in the goods producing sector. That loss includes 347,000 manufacturing jobs.
Source: Same as above.

And, Virginia, that matters

"Were America to lose mastery and control of manufacturing, vast numbers of services jobs would be relocated after a few short rounds of product and process innovation, largely to destinations outside of the United States, and real wages in all service activities would fall, impoverishing the nation."
Source: Stephen S. Cohen and John Zyzman, Manufacturing Matters, Basic Books Inc., New York.

Is manufacturing recovering in Illinois?

The state had 13,800 (1.5 percent) more manufacturing jobs in September 1988 than it did in September 1987. What's more, manufacturing employment statewide has had annual increases for each month since April 1987 through September 1988.
Source: Department of Employment Security.

There's still a piece to go

In 1979 there were 1,286,000 manufacturing jobs in Illinois.

In 1988 there were 939,000 manufacturing jobs in Illinois.
Source: Office of the Comptroller.

Who's going to be after these jobs in 12 years?

By the year 2000, according to a study by the Hudson Institute for the U.S. Department of Labor, 80 percent of all new entrants to the work force will be women, minorities or immigrants. Only 15 percent of new entrants will be native white males, compared with 47 percent today.
Source: "Demographics Deliver a Warning" [or an unparalleled opportunity], Industry Week, April 18.

Where are the jobs in Illinois?

Nonelectrical machinery (engines, farm and construction, metal working, industry and office machinery): 139,600 jobs or 14.7 percent of manufacturing jobs. Up 2.4 percent between 9/87 and 9/88.

Electrical and electronic equipment (computers, office equipment, vending machines, heating and cooling): 122,300 jobs or 12.9 percent. Up 0.3 percent.

Printing and publishing: 109,900 jobs or 11.6 percent. Up 1.7 percent.

Fabricated metals (cans, hardware, structural, nuts and bolts): 109,800 jobs or 11.6 percent. Up 0.3 percent.

Food (food, beverages, ice, chewing gum, animal feeds): 91,000 jobs or 9.6 percent. Up 1.2 percent.

Chemical and allied products (basic chemicals and plastics, pigments, drugs, cosmetics, soaps; fertilizers, explosives): 58,600 jobs or 6.2 percent. Up 2.1 percent.

Primary metals (smelting, refining, rolling, drawing, alloying ferrous and nonferrous metals; making castings, nails, insulated wire): 55,100 jobs or 5.8 percent. Up 2.4 percent.

Rubber (tires, footwear, hose and belting, industrial, mechanical, plastics products): 50,400 jobs or 5.3 percent. Up 1.2 percent.

Transportation (trains, planes, cars, missiles, space vehicles, bikes): 45,400 jobs or 4.8 percent. Up 4.4 percent.

Apparel (clothing): 14,300 jobs or 1.5 percent. Up 2.9 percent.
Source: Department of Employment Security.

Progressing in Peoria

Peoria enjoyed more than a fifth of the state's total manufacturing employment growth from September 1987 through September 1988. Manufacturing jobs grew from 31,800 to 34,600. Of the new jobs, 2,500 were in nonelectrical machinery.
Source: Same as above.

Komatsu buys into Peoria

Some of that machinery was bulldozers, tractors, crawlers, motor graders, and back hoes. Peoria is now home to the No. 1 and the No. 2 manufacturers of heavy duty construction equipment. In April 1988 Komatsu, the Japanese arch rival of Caterpillar, merged with Dresser (a manufacturer of heavy trucks for mining) and put down roots in Peoria. "If a company doesn't buy from one, they'll buy from the other." A lot of the new job growth is in outsourcing from the big firms to small machine and tool and die shops. They're looking for welders.
Source: Steve Balistreri, Council for Economic Development (serving Peoria. Tazewell and Woodstock counties).

Rolling in Rockford

Nearly a sixth of the new manufacturing jobs created in Illinois between September of 1987 and September of 1988 were in Rockford, which saw 2,200 new jobs.
Source: Department of Employment Security.

Rockford sells to Japan

Rockford led the nation in unemployment in 1982 because its machine tool and fastener industries were tied to automobiles and construction. Today manufacturing's share of Rockford's more diverse economy is 35 percent, down from 45 percent in 1979, and there's a big push to upgrade job skills.

Exports rose as the dollar went down, and Ingersoll Machine Mill Company is selling to Japan. A survivor of the devastating shakeout of U.S. machine tool firms, Ingersoll is now one of the top five in the world.
Source: Charles Durham, Economic Development Coordinator, Rockford.

General funds

The general fund end-of-month balance in October was $93,788 million. The average daily available balance was $153,473
Source: Office of the Comptroller.

Unemployment up by 35,000

In October the nation's seasonally adjusted unemployment rate was 5.3 percent, down from 5.4 percent in September. In Illinois it rose from 6 percent to 6.6 percent. There were not enough jobs for a greatly expanded work force. The October labor force consisted of 5.807 million people (compared to 5.797 million last month); 5.425 million had jobs and 382,000 were unemployed.

Final August unemployment rates in the state's metro areas were:

Aurora-Elgin, 5.1 percent.
Bloomington-Normal, 5.2 percent.
Champaign-Urbana-Rantoul, 4.1 percent.
Chicago, 6.2 percent.
Quad Cities (Illinois sector), 8.4 percent.
Decatur, 8.5 percent.
Joliet, 7.3 percent.
Kankakee, 9.5 percent.
Lake County, 4.3 percent.
Peoria, 6.8 percent.
Rockford, 7.0 percent.
Springfield, 4.9 percent.
St. Louis (Illinois sector), 9.0 percent.
Source: Department of Employment Security.

Margaret S. Knoepfle

December 1988 | Illinois Issues | 6