Chicago Employment Index Falls to Lowest Level Since 2009

Chicago businesses recorded their weakest employment reading in more than a decade, according to new data released by the Illinois Policy Institute, as hiring stalled and business activity continued a prolonged decline.

The institute reported that the Chicago Business Barometer’s employment index fell to 35.5 in December, its lowest level since November 2009. For the second consecutive month, none of the surveyed firms reported an increase in hiring, while overall business activity in the region has contracted for 25 straight months. The report also noted that national employment growth has outpaced Chicago’s in nearly every quarter since September 2022.

Federal data points to similar trends. The U.S. Bureau of Labor Statistics said the unemployment rate in the Chicago-Joliet-Naperville metropolitan area rose to 4.5 percent in November 2025, up from 4.1 percent in September. Total regional nonfarm employment reached 3.85 million, reflecting a modest 0.5 percent increase over the past year. Job gains were concentrated in the government and education sectors, while manufacturing and professional services posted losses.

At the national level, the Bureau of Labor Statistics reported an unemployment rate of 4.3 percent in September 2025, showing relative stability. Overall, U.S. employment growth continued to exceed that of the Chicago region during most quarters since 2022, reflecting uneven regional labor market performance.

The Illinois Policy Institute, founded in 2002 and based in Chicago, is a nonpartisan research organization that conducts policy analysis on economic, education, and fiscal issues, with a focus on free-market approaches and taxpayer interests.