September 19, 2007 - Michigan's seasonally adjusted unemployment rate in August increased by two-tenths of a percentage point to 7.4 percent, according to data released today by the Michigan Department of Labor & Economic Growth (DLEG).  Total employment fell by 28,000 over the month as unemployment rose by 12,000.  The state's labor force declined by 16,000 in August.

"Michigan's labor force in 2007 has declined in six out of eight months," said Rick Waclawek, director of DLEG's Bureau of Labor Market Information and Strategic Initiatives.  "These labor force reductions are likely related to buyouts and workforce cuts in the state's auto industry, as well as the recent downturn in residential construction."

Monthly Labor Force Trends & Highlights

• Michigan's 7.4 percent unemployment rate in August was the highest monthly rate for the state since September 1993.  However, for the first eight months of 2007, the Michigan jobless rate has averaged 7.0 percent, similar to the 2006 rate of 6.9 percent.
  
  
• Michigan's August 2007 jobless rate moved upward by four-tenths of a percentage point from the state's August 2006 rate of 7.0 percent.  In the same period, the national jobless rate decreased slightly by one-tenth of a percentage point.
  
  
• The state's work force continued its downward trend in August.  This movement out of the state's labor force began in the early months of 2007.  Since January, Michigan's labor force has recorded a reduction of 80,000 or 1.6 percent.
  
  
• From August 2006 to August 2007, total employment in Michigan declined by 96,000 or 2.0 percent.  Total employment nationally increased by 0.8 percent in the same time frame.
  
  
• Since August 2006, statewide unemployment increased by 14,000 or 3.9 percent.  In that same period, unemployment nationally edged downward by 0.3 percent.
  
  
• The national jobless rate in August was unchanged over the month at 4.6 percent.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

Detroit Metropolitan Area's August Jobless Rate Increases

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in August increased by three-tenths of a percentage point from the July rate of 7.7 percent to reach 8.0 percent.  This was the highest monthly jobless rate for the Detroit metro region since December 1992.  Total employment dropped over the month by 37,000 while unemployment moved upward by 5,000.  The area's labor recorded a reduction in August of 33,000.

From August 2006 to August 2007, the metropolitan area's jobless rate rose by seven-tenths of a percentage point.  Over the year, total employment was down in the area by 42,000 as unemployment increased by 15,000.

Detroit-Warren-Livonia MSA
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

August Payroll Jobs Edge Upward

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs edged upward in August by 5,000 to total 4,280,000.  The only notable job changes reported in August were gains in local government (+3,000) and professional and business services (+2,000).  The job increase in local government reflected the opening of a tribal-owned casino in Southwest Michigan.  The remaining major industry sectors recorded merely minor offsetting increases or decreases over the month.

Industry Employment Trends and Highlights

• Since May, statewide payroll jobs have been relatively steady, averaging 4,282,000.
  
  
• Michigan construction industry jobs edged down slightly in August.  Since March, this sector recorded a 14,000 or 8.0 percent reduction in jobs.  Seventy-seven percent of the over-the-year employment decline in construction has occurred since March.
  
  
• The financial activities sector posted its sixth consecutive monthly job loss in August.  Since February, jobs declined in this category by 4,000 or 1.7 percent.
  
  
• Professional and business services displayed modest job gains in August for the second consecutive month.  Previous to July, this sector had shown reductions since December.
  
  
• From August 2006 to August 2007, payroll jobs in Michigan fell by 56,000 or 1.3 percent.  Three-quarters of that job loss occurred in two industry sectors, manufacturing (-24,000) and construction (-18,000).
  
  
• Since August 2006, education and health services was the only major industry sector in Michigan to show significant job growth (+10,000), while leisure and hospitality services was the only other major sector to record a gain (+2,000).
  
  
• Seasonally adjusted average weekly hours of production workers in manufacturing were unchanged over the month, but hours worked declined slightly over the year.  Seasonally adjusted average earnings declined modestly over the month; however earnings increased somewhat since August 2006.

The Department of Labor & Economic Growth (DLEG) is investing in Michigan's future by helping to create the jobs of today and tomorrow, ensuring that our children and adults have the skills these jobs demand, making Michigan a better place to do business, and training and placing those who need jobs now.

Note to Editors:  Please ensure that the source for state unemployment rates reads "Michigan Department of Labor & Economic Growth."