Year in Review 2023

Chicago Business Bulletin: Year in Review 2023

On March 1, 2024, Chicagoland secured its 11th consecutive Top Metro in the U.S. for Corporate Relocation and Site Selection, showcasing economic resilience amidst uncertainties. In 2023, 163 pro-Chicagoland decisions resulted in 23,100 jobs and generated over $1.87 billion in earnings. Chicagoland also maintained its status as the nation’s third-largest metro economy, with a gross regional product (GRP) of $847 billion. A 5.2 percent growth in professional and business services, coupled with significant contributions from the manufacturing sector, fueled this expansion.

Increases in output did not necessarily correspond to increases in jobs across Chicagoland. Despite maintaining a 4.1 percent unemployment rate in December 2023, unemployment across the region was higher than 70 percent of other U.S. metropolitan areas. That said, there are significant discrepancies between U.S. Bureau of Labor Statistics data sources: Current Employment Statistics (CES) reported a gain of 142,800 jobs, while Local Area Unemployment Statistics (LAUS) indicated a drop of approximately 26,000 jobs, possibly due to individuals holding multiple jobs simultaneously.

Despite a decline from the year prior, growth capital investments totaling $4.73 billion in the startup ecosystem showed consistent growth when compared to the pre-COVID period of 2013 to 2019. Chicago also emerged as a top location for women founders of startups, according to a Chicago:Blend Startup Diversity Report co-authored by the WBC Research Center. In 2023, O’Hare International Airport continued its reign as one of the top ports by value in the nation with $271 billion in trade, trailing only Port Laredo and Port of Los Angeles. Such performance across various metrics reinforces Chicagoland’s multifaceted economic strength and prominence nationally and globally.

The Chicago metro’s performance in 2023 showcases a robust business environment, and despite complexities in the employment landscape characterized by a nuanced job market, the city’s resilience remains a driving force. Growth in key industries, sustained capital investments, and O’Hare International Airport’s continued prominence in trade contribute to a positive outlook for 2024.

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