June Layoffs Hit Illinois CompaniesJune Layoffs Hit Illinois Companies In June, Illinois experienced a surge in mass layoffs, as nine companies announced job cuts affecting over 1,000 employees. According to the Illinois Worker Adjustment and Retraining Notification Act, mass layoffs involve reducing the workforce by 25 or more full-time employees. Economic Challenges Impact Businesses Policy analyst Bryce Hill of Illinois Policy attributes the layoffs to the state’s “least business-friendly” regulations and requirements. He notes that Illinois has lost over 90,000 residents and $10 billion in revenue due to these obstacles. Small Businesses as a Bright Spot Despite the overall trend of layoffs, small businesses in Illinois have been adding jobs to the economy. Since the pandemic, businesses with under 20 employees have created 170,000 jobs, accounting for the state’s entire net job growth during that period. Layoffs Impact a Wide Range of Employees The WARN report indicates that over 1,100 job losses were expected in Illinois in May. Large companies such as John Deere, Aramark, and Jelly Belly Candy have announced layoffs. According to Hill, junior and labor-intensive workers are often the most vulnerable to layoffs. Entrepreneurship as a Factor Hill believes that small businesses’ resilience to layoffs stems from entrepreneurship and their reliance on delivering goods and services to their communities. They are more likely to retain employees and contribute to overall economic growth. Layoffs also Affect Salaried Employees Electric car manufacturer Rivian has laid off not only junior employees but also senior management and engineering workers in June. An email obtained by the media reveals that the layoffs solely targeted salaried employees at the Normal facility.
More Illinois companies lay off workers in June (through The central square) — In June, nine Illinois companies announced that a total of 1,017 jobs were affected by mass layoffs. A policy analyst and economics expert says more people are relying on themselves for their jobs.
A “mass layoff” under the Illinois Worker Adjustment and Retraining Notification Act is a reduction in personnel at a single workplace of 25 or more full-time employees if they constitute one-third or more of the full-time employees at the workplace, or 250 or more full-time employees.
According to Bryce Hill, director of tax and economic research at Illinois Policy, Illinois is the least business-friendly state of all neighboring states and regulations and requirements can create unnecessary obstacles for businesses.
“IRS data shows that the state actually lost 90,000 people, and in 2022 they took $10 billion in revenue with them and that’s revenue that’s not going back into the economy,” Hill said. “It’s going to other states instead, and it’s one of the reasons why the state has the third highest unemployment rate in the country. Not only the layoffs, but the other outcomes that even people who are still employed are experiencing, all speak to the hostile business climate that the state of Illinois has created.”
Hill says there is also a bright spot in Illinois’ labor market, namely that small businesses are the only employers actively adding jobs to the state’s economy.
“Since the pandemic, businesses with fewer than 20 employees have created nearly 170,000 jobs, which is the state’s total net job growth during that time. In the decade prior, those businesses accounted for two-thirds of job growth. It’s especially important to recognize that at a time when we’re seeing rising unemployment rates and job losses, several communities across the state are being impacted,” Hill said.
According to the WARN report, more than 1,100 jobs were expected to be lost in Illinois in May. John Deere, Aramark and Lagunitas Brewing were all on the list of companies that have made massive layoffs. Now, in June, more layoffs were announced at John Deere and Aramark, and this month, Jelly Belly Candy was added to the list.
Hill explained that small businesses have survived the storm of mass layoffs that Illinois has experienced in recent months because entrepreneurship is necessary.
“Small businesses were also the least likely to lay off people early in the pandemic, and the sustainability of a small business often depends on its employees and its ability to deliver the goods and services customers expect, much more so than a large company, which may be focused solely on profit,” Hill said.
Small businesses tend to be deeply involved in their communities and the data seems to bear that out, Hill said.
“Small businesses are less likely to lay off workers, are more likely to drive net job growth and are generally more resilient to the economy,” Hill said.
Hill said it’s likely that junior and labor-intensive workers are often the first and most affected by mass layoffs. Electric carmaker Rivian has begun laying off more senior employees after announcing its first layoff in February of this year. According to one employee, the Normal facility laid off 35 senior management and engineering workers in June. An email shows that the June layoffs only affected salaried employees.
More Illinois companies lay off workers in June
