This is the first in a series on the overall state of the Chicago economy. In this monthly installment, we will examine several economic indicators in order to provide an assessment on the L'Etat d'Esprit Economique of the Windy City.

Major Sectors:

According to a recent report in Crain’s Chicago Business, Chicago ranks number two nationally in the number of manufacturing jobs, with 408,800. Only Los Angeles, with 527,400, has more manufacturing jobs than Chicago. The Chicago Midwest Manufacturing Index increased for the third straight month to 84.8 in July 2011, nearly 5 points higher than the July 2010 value of 79.9.

Employment:

As of August 2011, the Chicago area unemployment rate is 10.2%, compared to last year's August rate of 9.8%. This is despite the addition of 3,000 construction jobs in July. The Illinois state unemployment rate is 9.9% as of August 2011, still higher than the U.S. rate of 9.1%.

Consumer Price Index:

The consumer price index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The Bureau of Labor Statistics’ CPI-U, or CPI for Urban Consumers, covers approximately 87 percent of the total population. The indicator includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force. The CPI-U in the Chicago-Gary-Kenosha area increased 0.2 percent in August 2011. Over the past 12 months, the Chicago-area CPI-U rose 3.2 percent.

Sources: World Business Chicago, Crain’s Business Journal, U.S. Bureau of Labor Statistics