Economic Data Shows Impact of COVID

Economic Data Shows Impact of COVID

As Illinois grapples with job loss and other economic declines caused by the pandemic, Northbrook has hardly been immune.  Data from the Bureau of Labor Standards and Illinois Department of Employment Security (IDES) showed a surge in unemployment in the spring, with a slight rebound in people returning to work in July.  Although Northbrook has fared somewhat better than the overall region, its most recent unemployment figure remains at 10 percent compared to 3.2 percent one year ago..

Between February and July, Illinois recorded net job losses of over 504,400, even with the addition of 93,200 jobs in July.  Those numbers translate into a state unemployment rate of 11 percent in July.  Local figures are comparable to the state rates:  the Chicago/Naperville/Arlington Heights metropolitan division recorded unemployment at 12.3 percent in July.  Northbrook’s 10 percent rate in July comes in slightly higher than some surrounding municipalities: Highland Park reports a rate of 7.9 percent, Buffalo Grove 9.0 percent, and Glenview 9.8 percent.

Another metric that has significant future implications for the Village: a precipitous decline in sales tax revenue since the start of the pandemic. In the 2020/21 FY budget, sales taxes were expected to provide 29 percent of general fund revenue. According to data supplied by the Village, sales taxes generated in April and May were roughly half of the amount for the same period of time one year ago. It remains to be seen how much the reopening of stores this summer will restore that vital revenue stream.