CHICAGO- The seemingly endless squabble over the Illinois budget does not seem to have harmed the overall economy in the Chicago area, according to a study recently released by MBRE. Total non-farm employment increased 1.2 percent since last year, the firm finds. And “significant gains in office-using industries comprised much of the increase in employment.” Since January 2010, they note, professional and business services employment in the metropolitan area grew 2.8 percent, adding more than 71,000 jobs. The construction industry continues to stuggle, but in February 46,000 new jobs were added nationally, the largest increase since before the recession.
MBRE attributes some of the office market's strength to Mayor Rahm Emanuel's campaign to bring more companies into the CBD. Specifically, they note Clayco's recent announcement that it would move its national headquarters and 300 jobs from St. Louis to Chicago, Motorola Solutions announcement that it also would move 300 jobs downtown and Coeur d'Alene Mines Corp. deciding to bring another 100 jobs.
However, in tandem with this migration many firms continue to “right-size” and cut down on the space used by remaining employees. But MBRE also cites a recent survey by Wisconsin-based Manpower, a provider of workforce solutions, which found that 19 percent of Midwest employers anticipate increasing their workforces in the second quarter and 5 percent will make cuts. More significantly, 24 percent of companies in office-intensive professional and business services plan an increase and only 4 percent a decrease.
The MBRE report also cites a judgment by Moody's Economy.com that Chicago's economy is “firmly in recovery.” Economy.com does state “that fiscal issues, infrastructure in need of repair, and below-average population growth are preventing a more robust recovery.”
Still, MBRE's final judgment is that “while uncertainty remains in the state of Illinois, numerous improving indices point towards continued job growth in Chicago, albeit at a slower pace than recoveries in the past.” And “for the Chicago office market to experience significant improvement, the mayor's office will need to continue its pursuit of relocations to Chicago and expansions of existing companies along with more aggressive job creation.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
