Populations Shrink In Illinois Metro Areas As Manufacturing Jobs Decline

From The Center Square:

By Greg Bishop | The Center Square

A new review of U.S. Census data shows most metropolitan areas of the state have lost population over the past ten years. A state Representative says there’s a clear reason he sees is the cause.

The state’s leading manufacturing association says the state has fostered a better business climate now more than ever for many reasons.

The Rockford Register Star reported that a review of recent U.S. Census data showed most of Illinois’ metropolitan areas are smaller than they were ten years ago. One of the drivers of declining population is declining manufacturing jobs.

Illinois Manufacturers’ Association President Mark Denzler said Illinois needs to do better.

“Stop increasing taxes, stop putting new regulations on that are costly, stop the bleeding and then let’s take a look and again, making the cost of workers’ compensation more fairer, reducing significant unemployment insurance burdens for example or environmental regulations that simply add cost and we haven’t done that,” Denzler said.

Increased manufacturing activity could help provide job opportunities for some of the most disadvantaged areas of the state, Denzler said.

Rockford shrank 5 percent, Peoria shrank 4.1 percent and Springfield is 2.4 percent smaller since 2010. Decatur led the declines by shrinking more than 7 percent, according to a review by the Rockford Register Star.

State Rep. Dan Caulkins, R-Decatur, said that does a huge disservice to disadvantaged communities.

“And when there are no jobs, people either leave or they find themselves trapped in a welfare system that no one enjoys,” Caulkins said. “I don’t think anyone wishes to be there but when there aren’t opportunities, that’s the safety net that we have.”

He said Illinois is unattractive to business development with high taxes and workers’ comp costs.

“And now with this $15 an hour minimum wage push is driving up the cost of doing business and manufacturers are just not locating in Illinois,” Caulkins said.

Illinois’ minimum wage will increase to $10 an hour on July 1 and then to $11 on Jan. 1, 2021. The state's minimum wage will then increase a dollar more a year to $15 an hour by 2025.

The focus of the work of The Center Square Illinois is state- and local-level government and economic reporting that approaches stories with a taxpayer sensibility. For more stories from The Center Square, visit TheCenterSquare.com.