The FDIC’s most recent quarterly State Profiles report reveals an Upper Midwest economy in much better condition than a year ago.
The report revealed seasonally adjusted unemployment rates to be considerably lower than 2Q 2020:
- Illinois: Slightly over 7 percent, down from 15.4 percent last year.
- Idaho: Three percent, down from 9 percent last year.
- Indiana: Four percent, down from 13 percent last year.
- Iowa: Under 4 percent, down from 8.8 percent last year.
- Michigan: Five percent, down from 19.5 percent last year.
- Minnesota: Four percent, down from 9.7 percent last year.
- Montana: Slightly over 3.5 percent, down from 9.5 percent.
- Nebraska: Slightly over 2.5 percent, down from 6.5 percent last year.
- North Dakota: Slightly over 4 percent, down from nearly 8 percent last year.
- South Dakota: Under 3 percent, down from 7.4 percent last year.
- Wisconsin: Under 4 percent, down from 11.3 percent last year.
- Wyoming: Under 5.5 percent, down from 7.1 percent last year.
Those unemployment figures are also mainly below the 5.2 percent U.S. rate in August According to the Bureau of Labor Statistics, notable job gains were seen last month in professional and business services, transportation and warehousing, private education, manufacturing and other services. Employment in retail trade declined over the month.
The report came shortly after the FDIC’s Quarterly Banking Profile revealed that insured institutions made $70.4 billion in 2Q 2021, a $51.9 billion increase (281 percent) from a year ago as net interest margin continued its contraction and loans grew slightly. That increase was primarily due to a $73 billion decrease in aggregate provision expenses, reflecting that economic growth and better credit conditions. Nearly two-thirds of the 4,591 FDIC-insured commercial banks and savings institutions reported annual improvements in quarterly net income, and the share of profitable institutions increased 1.4 percent year-over-year to 95.8 percent.