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Chicago Job Market Shifts Amid National Corrections and Sunbelt Migration
Chicago’s job market in September 2025 remains in a noticeable state of transition following significant national and local employment data revisions earlier this year. The Bureau of Labor Statistics revised national figures, eliminating nearly a million “phantom jobs” from counts between March 2024 and March 2025, with the past month’s hiring in the U.S. at its lowest for August since 2010 according to the Bureau of Labor Statistics and analysis by Monitor Daily. Chicago, as the economic center of Illinois, reflects those national corrections with corresponding slowdowns in job creation and a rising number of individuals experiencing long-term unemployment.
Illinois overall, and Chicago specifically, are feeling these headwinds more than many major American metros. Lightcast’s 2025 Talent Attraction Scorecard placed Illinois forty-ninth among all states for talent attraction, citing migration away from northern cities towards Sunbelt and Mountain West regions, and highlighting only three of the fifty largest metros outside those dynamic relocation corridors. Chicago’s employment landscape leans heavily on retail, still the state’s largest private sector employer with one in four working in some form of retail, according to Capitol Fax. Healthcare, technology, hospitality, education, and finance remain key pillars, and anchor institutions and major employers like Northwestern Memorial, United Airlines, Accenture, and the city’s prominent retailers continue to anchor the labor force, although over-reliance on these sectors is viewed as a long-term risk by economic development analysts. Crain’s Chicago Business recently recognized major technology employer Liventus as a top place to work, underscoring the ongoing strength of tech as a growing employment sector.
The most recent available data indicate the Chicago metro unemployment rate climbed in late summer, with national joblessness reaching 4.2 percent in July 2025, and experts at 24/7 Wall St. warning of risk that the rate could approach 7 percent nationally by late 2025 or early 2026 if macroeconomic pressures from tariffs and inflation persist. Seasonal patterns in Chicago typically bring retail and hospitality hiring upticks during the holiday season, but weak discretionary spending this year may reduce those gains. Remote work continues to play a role but less prominently than in some faster-growing metro areas, and blue-collar worker shortages persist, especially in construction and maintenance trades.
On the government front, Mayor Brandon Johnson’s administration just launched the South Lawndale Small Business Storefront Activation Program, funded by American Rescue Plan Act resources, seeking to breathe new life into local commercial corridors and provide strategic support to small businesses, retail startups, and entrepreneurs. The broader Chicago Road to Recovery plan merges ARPA funds with local efforts aimed at small business stability, job creation, and community safety. City and county government are facing budget shortfalls complicating prospects for new large-scale hiring initiatives.
Chicago’s job market is cooling as employers slow hiring and are increasingly selective with new roles, but skilled workers in technology, healthcare, and specialized trades remain in demand. At present, opportunities include a software engineer position at Liventus, a registered nurse opening with Northwestern Memorial Hospital, and a retail manager role at a major South Side commercial store. Long-term job seekers and potential relocators should note migration trends and ongoing shifts in workforce demand. Some data gaps exist due to the recent BLS revision and lag times for sector-specific employment updates, especially at the city level, although current reports generally confirm a softening labor market with targeted areas of growth.
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Published on 3 months ago