UC Ingalls Hospice ad 728x90px 102621 1
Illinois economy shrinks 4% in 2020 despite 4th quarter growth

Illinois economy shrinks 4% in 2020 despite 4th quarter growth

By PETER HANCOCK
Capitol News Illinois
[email protected]

SPRINGFIELD – The Illinois economy shrank by 4 percent in 2020 as the COVID-19 pandemic wreaked havoc on many of its sectors, although there were signs of a recovery taking place late in the year.

Those preliminary numbers, released last week by the U.S. Department of Labor’s Bureau of Economic Analysis, showed that the leisure, hospitality and food service sector was the hardest hit by the pandemic, reporting a nearly 30 percent drop in economic output for the year.

That was due to the forced closure of bars, restaurants, theaters, amusement parks and most tourist attractions in the early phases of the pandemic, as well as the cancellation of large conventions and business meetings.

“You look at the various industries, many of which got impacted by COVID, but I don’t think any industry was impacted as much as hotels and tourism,” Michael Jacobson, executive director of the Illinois Hotel and Lodging Association, said during an interview. “We saw the impacts begin before some people even realized what COVID was because you started seeing conventions and large-scale meetings begin to cancel. And unfortunately, those same events that really are the lifeblood of our industry, are going to be some of the last events to begin back up again.”

According to BEA, real gross domestic product decreased in all 50 states and the District of Columbia in 2020. Utah, with a 0.1 percent shrinkage rate, fared the best, while Hawaii’s state economy shrank 8 percent. The average shrinkage rate for the U.S. as a whole was 3.5 percent.

Accommodation and food services were a contributing factor to the declines in all 50 states and D.C., and they were the leading contributor to the decreases in 38 states plus D.C.

Other industries that suffered in Illinois included transportation and warehousing, down 14 percent; nongovernment services, down 12.3 percent; manufacturing, down 7.3 percent; wholesale trade, down 5 percent; and retail trade, down 2.3 percent.

The one bright spot in the state’s economy was the agriculture sector, which grew by nearly 68 percent over the previous year. That was largely the result of a bad harvest year in 2019, followed by a good one in 2020.

When the numbers are broken out on a quarterly basis, however, the biggest drop in economic output occurred during the 2nd quarter, April-June, when Illinois was under the most severe economic restrictions. The economy began to pick up in the 3rd quarter, and by the 4th quarter was growing at an annualized rate of 3.5 percent.

But the recovery has not been even across all sectors, and the leisure and hospitality industries continue to suffer.

Jacobson says he does not expect the hotel industry to come back fully to pre-pandemic levels until sometime in 2024. The question for his industry, he said, is how many hotels will be able to survive financially until that time.

“I mean, you’ve seen some very notable hotel names across the state, the Palmer House being one of our largest hotels in the state, and obviously the most notable one that’s been foreclosed so far,” he said. “But if a hotel that size, owned by one of the large real estate investment companies can get foreclosed, imagine the little guys who own most of the hotels in our state, how bad they’re suffering.”

Capitol News Illinois is a nonprofit, nonpartisan news service covering state government and distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.

Leave a Comment





Local News

Madelyn and Zachary Rodrigues are proud to hold an annual toy drive benefiting patients at Comer Children's Hospital at the University of Chicago. (Supplied photos)

Teen helps others despite brittle bone disease

Family toy drive benefits Comer Children’s Hospital By Kelly White Early on in her life, Madelyn Rodrigues was diagnosed with Osteogeneis Imperfects, a brittle bone disease that has already resulted in more than 70 bone fractures in her 14 years of life. As a freshman at Illinois Lutheran High School in Crete, Madelyn’s inner strength…

Peggy Zabicki

Thankful for the man who gave us Peanuts

By Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 Did you know that Charles M. Schulz, author of the Peanuts cartoon series, was born on Nov. 26, 1922? I’m thankful and grateful for his creativity, which has endured the test of time. His cartoon movie, A Charlie Brown Thanksgiving, was first…

Kathy Headley

Marquette Bank wants your opinions

By Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 So after eating the big Thanksgiving meal and maybe planning some weekend shopping, if you are a Marquette Bank customer, you might want to take the 2021 Customer Survey before it’s too late. The deadline is Nov. 30.…

Karen Sala

There are many Jewels, but ours shines brightest

By Karen Sala Your correspondent in Gage Park (773) 471-1429 • [email protected] Turkey Day is over, and now it’s time for leftovers! I enjoy leftovers from Thanksgiving dinner more than the original. Even though I went by my son’s, I still made my own turkey and sides. That way I have leftovers. I was watching TV…

Mary Stanek

The best is what’s left over

By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 284-7394 I hope everyone’s tummies are full of all that Thanksgiving goodness. In the words of actor and comedian Kevin James, “Thanksgiving, man. Not a good day to be my pants!” Now the best part about Thanksgiving being…

The late CPD Officer Ella French.

‘They tried to taint Ella’s legacy’

Aldermen furious with mayor, COPA chief By Tim Hadac The three aldermen representing Clearing and Garfield Ridge are among 20 City Council members opposing the appointment of Andrea Kersten as the next Chief Administrator of Civilian Office of Police Accountability. Kersten, the current interim chief of COPA, came under fire recently for releasing a report…

Screen Shot 2021-11-25 at 4.30.36 PM

Roadrunners are state volleyball champs

Snack With Santa is an event founded by longtime Garfield Ridge Chamber of Commerce President Mary Ann Dybala near 40 years ago. It offers a bit of Christmas cheer for children and underscores the local business community’s commitment to the neighborhood. --File photo

Holiday warmth is straight ahead

By Joan Hadac Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • [email protected] Tomorrow is Thanksgiving Day, my favorite holiday of the year. I look forward to it because it’s all about family, whether it’s family of blood or heart or both. People actually slow down and catch up with each other. It’s not about…

GSWNH_CityLeadersVax_111921

Pushback over ‘conscience’ law change

Measure would close vax loophole By Peter Hancock Capitol News Illinois and Tim Hadac A number of Southwest Siders are pushing back against a new state law designed to clear the way for employers to enforce vaccination, testing and other mitigation measures to prevent the spread of COVID-19. The measure, Senate Bill 1169, amends the Illinois…

GSWNH_BFEDM2_111921

Back in their dancing shoes

  After the pandemic forced them off the stage for more than 20 months, the boys and girls of Ballet Folklórico Estrella del Mar donned their costumes and dancing shoes last week and performed for Big Shoulders Fund representatives visiting St. Mary Star of the Sea School in West Lawn. Founded in 2015 at the…

Neighbors

AladdinsBanquets WebAd
Northwestern Home Team 250x250 1
Madelyn and Zachary Rodrigues are proud to hold an annual toy drive benefiting patients at Comer Children's Hospital at the University of Chicago. (Supplied photos)

Teen helps others despite brittle bone disease

Family toy drive benefits Comer Children’s Hospital By Kelly White Early on in her life, Madelyn Rodrigues was diagnosed with Osteogeneis Imperfects, a brittle bone disease that has already resulted in more than 70 bone fractures in her 14 years of life. As a freshman at Illinois Lutheran High School in Crete, Madelyn’s inner strength…

Peggy Zabicki

Thankful for the man who gave us Peanuts

By Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 Did you know that Charles M. Schulz, author of the Peanuts cartoon series, was born on Nov. 26, 1922? I’m thankful and grateful for his creativity, which has endured the test of time. His cartoon movie, A Charlie Brown Thanksgiving, was first…

Kathy Headley

Marquette Bank wants your opinions

By Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 So after eating the big Thanksgiving meal and maybe planning some weekend shopping, if you are a Marquette Bank customer, you might want to take the 2021 Customer Survey before it’s too late. The deadline is Nov. 30.…

Karen Sala

There are many Jewels, but ours shines brightest

By Karen Sala Your correspondent in Gage Park (773) 471-1429 • [email protected] Turkey Day is over, and now it’s time for leftovers! I enjoy leftovers from Thanksgiving dinner more than the original. Even though I went by my son’s, I still made my own turkey and sides. That way I have leftovers. I was watching TV…

Mary Stanek

The best is what’s left over

By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 284-7394 I hope everyone’s tummies are full of all that Thanksgiving goodness. In the words of actor and comedian Kevin James, “Thanksgiving, man. Not a good day to be my pants!” Now the best part about Thanksgiving being…

The late CPD Officer Ella French.

‘They tried to taint Ella’s legacy’

Aldermen furious with mayor, COPA chief By Tim Hadac The three aldermen representing Clearing and Garfield Ridge are among 20 City Council members opposing the appointment of Andrea Kersten as the next Chief Administrator of Civilian Office of Police Accountability. Kersten, the current interim chief of COPA, came under fire recently for releasing a report…

Screen Shot 2021-11-25 at 4.30.36 PM

Roadrunners are state volleyball champs

Snack With Santa is an event founded by longtime Garfield Ridge Chamber of Commerce President Mary Ann Dybala near 40 years ago. It offers a bit of Christmas cheer for children and underscores the local business community’s commitment to the neighborhood. --File photo

Holiday warmth is straight ahead

By Joan Hadac Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • [email protected] Tomorrow is Thanksgiving Day, my favorite holiday of the year. I look forward to it because it’s all about family, whether it’s family of blood or heart or both. People actually slow down and catch up with each other. It’s not about…

GSWNH_CityLeadersVax_111921

Pushback over ‘conscience’ law change

Measure would close vax loophole By Peter Hancock Capitol News Illinois and Tim Hadac A number of Southwest Siders are pushing back against a new state law designed to clear the way for employers to enforce vaccination, testing and other mitigation measures to prevent the spread of COVID-19. The measure, Senate Bill 1169, amends the Illinois…

GSWNH_BFEDM2_111921

Back in their dancing shoes

  After the pandemic forced them off the stage for more than 20 months, the boys and girls of Ballet Folklórico Estrella del Mar donned their costumes and dancing shoes last week and performed for Big Shoulders Fund representatives visiting St. Mary Star of the Sea School in West Lawn. Founded in 2015 at the…

DVN Damar Kaminski Funeral Home House Ad
CRR NH Ptecik Bakery House Ad