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Champaign-Urbana adds jobs while unemployment rises across Central Illinois

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SPRINGFIELD, IL (Chambana Today) — The Champaign-Urbana metro area continued a streak of job growth in February, adding 1,100 nonfarm jobs over the past year, but saw its unemployment rate climb.

The Champaign-Urbana MSA posted a 4.8% unemployment rate in February 2026, up from 3.9% a year ago. Despite the uptick, the region has now recorded 13 consecutive months of year-over-year job growth, one of only four metro areas statewide to show gains. Total nonfarm employment in the region reached 122,000 jobs.

Growth in the Champaign-Urbana area was led by leisure and hospitality, which added 600 jobs, followed by government at 400 and several sectors each adding 200, including professional and business services, mining and construction, and transportation. Retail trade was the hardest-hit sector, losing 300 jobs over the year.

At the city level, Champaign posted a 4.6% unemployment rate in February, while Urbana came in at 4.9% — up 1.2 points from a year ago, one of the larger increases among local communities tracked in the report.

In McLean County, the unemployment rate rose to 4.6%, up from 3.8% a year ago.

The Danville area told a similar story. Vermilion County’s unemployment rate climbed to 6.6% in February, up from 5.8% a year ago, while Danville city specifically reached 7.1%. The area did add 125 jobs overall, driven largely by private education and health services, though manufacturing and professional services both posted losses.

Statewide, unemployment rose to 5.5% in February, up 0.5 points from the prior year. Eight of Illinois’ 12 metro areas saw year-over-year job losses, with Springfield, Rockford, and Bloomington posting the steepest declines.

Deputy Governor Andy Manar attributed the broad increases to federal policy uncertainty.

“February’s numbers show job growth in a few parts of Illinois, but rising unemployment across metro areas underscores the uncertainty coming from the federal government,” Manar said. “Washington’s shifting policies are making it harder for states to maintain momentum.”

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