The economy of Illinois, as of April 9, 2025, reflects a mix of strengths and challenges, particularly in relation to jobs and small businesses. Illinois boasts a significant economic footprint with a gross domestic product (GDP) exceeding $1 trillion, ranking it fifth among U.S. states. This positions it as a major economic player, supported by its strategic location, robust transportation infrastructure, and access to large consumer markets, especially in the Chicago area. The state has also seen efforts to stabilize its finances, with balanced budgets and the elimination of a bill backlog in recent years, signaling improved fiscal management.
In terms of jobs, the picture is more complex. Illinois has historically relied heavily on small businesses for job creation, which account for a substantial portion of employment. As of 2019, over 1.2 million small businesses employed about 2.5 million people—roughly 45% of the state’s workforce. However, job growth has been uneven. While the state added 8,400 jobs in June 2023, it has struggled to recover fully from pre-pandemic levels. By 2024, private sector jobs were down by 1,900 compared to 2019, placing Illinois among the nation’s weakest performers in job recovery, outperformed by all neighboring states. The unemployment rate remains a concern, with Illinois holding one of the highest rates nationally, often cited as the fifth-highest. Despite this, sectors like logistics, education, and professional services remain strong, bolstered by the state’s infrastructure and educated workforce.
Small businesses are a cornerstone of Illinois’ economy, comprising over 99% of its private enterprises. They face both opportunities and hurdles. Programs like Advantage Illinois and the EDGE tax credit initiative aim to support small businesses by improving access to capital and incentivizing job creation. For instance, the state recently launched a $10 million Small Business Capital and Infrastructure Grant Program targeting socially and economically disadvantaged businesses and very small firms with fewer than 10 employees. However, challenges persist, including high taxes, regulatory burdens—Illinois has the third-highest number of state regulations in the U.S.—and a history of fiscal instability, which can deter entrepreneurship. The Latino-owned business sector alone contributes over $100 billion to the GDP, highlighting the diversity and potential within this segment.
Overall, while Illinois has a robust economic foundation and targeted support for small businesses, job growth lags, and structural issues like taxes and regulations continue to impact its competitiveness. The state’s economic health hinges on balancing these factors to foster a thriving environment for employment and small business success. (per grok)
IL Economy
The economy of IL is a blend of tax and regulatory issues within the larger frame of reference of revenue generation by the private sector. The private sector runs on after tax funds. Every cost of government impacts the capacity of the private sector to produce goods or services, hire and employ staff and run daily operations.