Lawerence Synett / TribLocal reporter

McHenry County’s unemployment rate decreased for the seventh consecutive month in July, from 9.8 percent in June to 9.6 percent, according to non-seasonally adjusted data released by the Illinois Department of Employment Services.

The county rate was 11.6 percent in January. The state’s rate remained at 10.3 percent, but there’s been a steady increase in jobs in 2010.

“These numbers are very encouraging,” said Greg Rivara, IDES communications manager. “The county had more people working in July than January and fewer people not working. This is the movement we want to see.”

In Crystal Lake, the unemployment rate decreased from 9.8 percent in June to 9.6 in July.

Gary Reece, president of the Crystal Lake Chamber of Commerce, said businesses are holding steady.

“Hiring is always the last thing to come back after periods of recessions, but many businesses are in a holding pattern with hiring due to the uncertainty about increased costs, taxes and the future of the overall economy,” he said. “They are not laying off anymore, but they are not in an aggressive hiring mode either.”

Michelle Rentzsch, director of planning and economic development, said there has been an increase in the amount of restaurants and specialty retail shops in the city.

“This is the first time in more than a year where I feel like things are turning around,” she said. “We are seeing a spurt in growth, and good things are happening.”

The state has seen a growth in manufacturing jobs in five of the last seven months, up more than 12,000 in 2010. Professional and business service jobs are up 17,000. Other categories, including trade, transportation, utilities, education and health services, have seen a growth of more the 23,000 jobs, Rivara said.

Overall, job growth has increased in six of the last seven months. June saw the states only down month. Rivara said the decrease could be attributed to the recent labor strike and the 2010 Census wrapping up.

“Clearly, from January to July, we are starting to see evidence that the recession is slowing down,” he said. “Unemployment rates remaining steady or even declining in seven consecutive months hasn’t happened in years.”

With school back in session, Rivara said the next few months should be interesting based on the fact that data does not take into account those who may not work during the summer or residents not looking for jobs.

“It’s a challenge to see what’s around the corner,” he said. “With schools back online we can’t forget about all the support services that go along with it. We don’t know what a lot of people have been up to during the summer.”

Other McHenry County unemployment rates include McHenry, which decreased from 10.4 percent in June to 9.9 last month; Algonquin, which increased from 8.9 percent to 9.2; and Lake in the Hills, which decreased from 9.2 percent to 8.8.

lsynett@tribune.com