The month of August 2010 produced both positive and negative economic news for Illinois. Over 1,000 state residents are expected to lose their jobs for the month. The news comes as the state recorded a considerable decline in its foreclosure rate, with foreclosed bank, government and FHA homes for sale all posting lower totals.
Foreclosed homes in Chicago, IL and in most areas of the state posted fewer numbers for August, with the state recording a combined 14.25% decline compared with the previous month. A total of 16,808 filings were recorded by the state for the month, including auction notices, bank repossessions and notices of default.
August figures for foreclosed homes in Illinois represent a ratio of one household for every 314 being in some stage of foreclosure. When compared with August 2009, the filing totals are actually higher by 29%, with the state ranked ninth among all states in the U.S. in terms of foreclosure.
With the news of declining bank repossessions, government foreclosures and FHA homes for sale comes a not so positive development for the state. Unemployment is set to rise in the region, with over 1,000 residents warned that they could lose their jobs before August ends.
As the state deals with the ongoing housing market crisis along with the absence of deals involving people buying foreclosure houses for sale, workers face the possibility of becoming unemployed, with around 12 companies notifying the state of plans to close factories or implement mass layoffs.
Among them are PNC Bank, Northwestern Memorial Hospital, Precision Dormer LLC and National Manufacturing Co. The firms have already told the Illinois Department of Commerce and Opportunity of their plans to downsize. State law requires companies implementing layoffs or closing units to provide a two-month notice of their decision. The provision applies to all companies that have at least 75 fulltime employees.
Mass layoff is categorized under state regulation as a loss of job to 25 employees at least or one third of the population of employees at a single unit within a one month period. So, although bank repossessions, government foreclosures and FHA homes for sale recorded a lower total for August, economists have expressed worries over the number of people who are about to lose their jobs in the state.
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