It says "You can take an itemized deduction... But you're not itemizing deductions". Says who? I want to itemize deductions, but you won't let me!
Did you enter your itemized deductions in the federal side? The state return pulls the deductions from the federal return.
If you have itemized deductions for job-related expenses, they need to be entered in the Employment Expenses/Job-Related Expenses section.
Where do I enter Form 2106 - Job-Related expenses?