Illinois employment growth recorded its highest rate of increase in 10 years, according to a ”State of Working Illinois 2006” report released last week. The report is generated by the Center for Tax and Budget Accountability and Northern Illinois University (NIU) with data and help from the state Department of Employment Security.

From 2005 to 2006, the state’s total employment grew by more than 2 percent, exceeding both U.S. and Midwestern rates. In Illinois, the number of workers increased by more than 135,000, the largest job expansion here since 1994. Illinois’ median household income showed a gain of $775.

Unemployed workers decreased by more 68,000, causing the state’s unemployment rate to drop by 1.1 percent between 2005 and 2006.

However, Illinois continued to see an overall loss in higher paying jobs, including 10,900 jobs from the highest paying sectors of manufacturing and information. Illinois added another 64,400 service sector jobs, a 2.2 percent increase — the largest rate growth in the U.S.

Service sector growth is impacting job development in the state, noted Paul Kleppner, one of the NIU researchers.

“Illinois needs to prepare for the long-term effects of this job shift as it will impact everything from worker development and training to the state’s fiscal health and demand for public services,” Kleppner said.

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