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Store closings shadow job loss trend


Unemployment2-0828-Kane
By Steve Bittinger
With a growing number of available and for lease signs springing up in area office and industrial parks there are fewer positions available for job seekers.
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By Joe Lacdan, jlacdan@mysuburbanlife.com
GateHouse News Service

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St. Charles, IL -

 Unemployment numbers in Illinois have climbed to their highest level in nearly 15 years, and the impact is taking a toll on the Tri-Cities.

The number of unemployed people in St. Charles rose from 4.5, or 870 in January to 6.1 percent, or 1,200 in July. Batavia increased from 713 people out of work to 940 (4.6 to 6.1 percent).

The Illinois Department of Employment Security recently reported a 7.3 percent statewide unemployment rate, which ranks higher than the national average of 5.7 and the highest in the state since 1993.

Richard Kay, Chicago labor market economist, said until the last few months, Illinois had actually been adding jobs. But changes in the economy and increases in consumer costs have taken a toll.

“It’s finally caught up with Illinois,” Kay said. “June and into July has caught up with us and we are also decreasing employment.”

July marked the third straight month of year-to-year job losses increased in Illinois.

“I was disappointed to see that again the national economic crunch has weighed heavily on industries critical to Illinois’ economy,” Illinois Gov. Rod Blagojevich said in a statement.

Construction, financial services and manufacturing were among the areas hardest hit.

In St. Charles, the Bennigan’s restaurant closed in July and Baker’s Square closed earlier this year after their parent companies filed for bankruptcy. Layoffs at Batavia’s Proex plant sparked protests among workers in February. Charlestowne Mall’s occupancy rate has dropped, while smaller retailers continue to vanish, although the anchor stores remain. And in May, Armour-Eckrich Farms closed one of its plants on Production Drive. 

In Geneva, the Pepperidge Farms Thrift Store closed in July, and the Red Star Tavern in Geneva Commons also closed recently.

Despite the unemployment rise, Jim Klink, director of the Tri-Cities Unemployment Group, said that there are resources and tools for residents to find available jobs. Every other Monday, TUG hosts unemployment seminars at the St. Charles Public Library, where residents can develop interviewing skills and have their resume critiqued.

Klink acknowledged an increase in attendance at meetings, but said the current unemployment spike doesn’t match the one that hit the country in 2001.

“It is a market that is creating some troubling times for people,” Klink said. “But if you take a look at years past, what we’re going through is nowhere near what we went through (in 2001).”

Another factor, Klink said, is fewer companies offer outplacement services, helping employees find positions at other companies.

Sheila McCraven, Kane County’s human resource management director, said that there has been an increase in residents requesting referrals for unemployment services. McCraven also said that the dwindling housing market may have contributed to unemployment or vice versa. From 2006 to 2007, Kane County’s  housing foreclosures increased 42.6 percent.

J. Fred Giertz, University of Illinois economist, said the numbers show the impact of the struggling housing and finance industry has spread to Illinois. He stopped short of saying the country is in recession.

“We’re certainly in a significant slowdown,” Giertz said. “Traditionally, rising unemployment is a lagging indicator.”

Bob Howard, director of Lincoln Land Community College in Springfield, said the slow economy has led to an increase in applications for the school’s truck driver training program. However, he said, cuts in training funds may have deterred interest.

“When the job market is bad, people are drawn to truck-driving. It’s a way to make the $30,000 to $40,000 that they lost,” said Howard. “The downside is, to get that coming out of truck-driving school, you have to get one or two years of over-the-road experience to be eligible for what I call the great local jobs.”

Tim Landis and Janice Hoppe contributed to this report.
 

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