Categories: WTVO

Illinois sees surge in business losses, ranks second after California

ROCKFORD, Ill. (WTVO) — Behind California, Illinois lost the most businesses to other states since the start of the COVID-19 pandemic, according to a new report.

Illinois Policy Institute‘s data shows Illinois lost 218 businesses to other states in 2023, tripling the rate at which businesses left the state before the pandemic.

Conversely, California lost 533 businesses, and New York lost 278.

The report showed an accelerating rate of business losses, with 2,616 businesses moving out of Illinois between 1994 and 2023, accelerating significantly in 2017 and tripling since 2020.

Losses peaked in 2022, with 260 businesses moving out of Illinois.

Businesses seem to be moving southeast, with Florida gaining the most in 2023, at 503, followed by Tennessee (158), South Carolina (149), and Texas (125).

According to the report, Illinois’ uncompetitive tax climate was the largest factor in why businesses moved away.

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