(The Center Square) – Amid new reports that Chicago led the state in mass layoffs, a policy researcher says state leaders could do a lot to make Illinois more attractive to businesses and workers.

Illinois companies announced 1,183 mass layoffs in August, according to the Illinois Policy Institute. Of the 1,183 layoffs, 443 hit Chicago.

“Even though the homicide rate is down, the violent crime rates are still very high, and that causes fear in a lot of prospective employees who want to move to the state or that city, specifically. That adds more reasons for businesses to not want to come here or leave the state,” said Policy Researcher at Illinois Policy Institute Ravi Mishra.

Illinois’ unemployment rate for August tied for the second-worst in the U.S., jumping to 5.3%, according to recent data from the U.S. Bureau of Labor Statistics. This translates to 343,000 Illinoisans looking for work. Mishra said the manufacturing industry was hit the worst.

“Typically these things do tend to affect lower-paid employees, it just comes down to the fact that higher-paid employees have more economic mobility,” said Mishra. “Lower paid employees are less likely to leave the state if a company is switching over to a different state.”

Walterscheid Inc. Woodridge, a farm equipment manufacturer, relocated its company.

Mishra said so much of the state’s budget goes towards pension debt. He explained pension reform could help the state lower taxes.

“High budgetary costs is the big reason why the city [and state] has to levy such high tax rates and these tax rates are what leads to the state having such a bad [economic] environment,” said Mishra.

Mishra said Illinois’ second-highest corporate income taxes in the nation don’t help either.

“That makes it hard for businesses to grow and it also leads to a comparative disadvantage when you look at our neighboring states,” said Mirsha.

Illinois employers are mandated to file monthly mass layoff reports under the WARN Act, Worker Adjustment and Retraining Notification Act.