November 19, 2008 – Michigan's seasonally adjusted unemployment rate in October rose by six-tenths of a percentage point to 9.3 percent, according to data released today by the Michigan Department of Labor & Economic Growth (DLEG).  Total employment fell by 22,000 and unemployment increased by 27,000.  The state's labor force level was little changed over the month, edging upward by 4,000.

Michigan's October 2008 jobless rate was one and eight-tenths percentage points above the state's October 2007 rate of 7.5 percent.  In the same period, the national jobless rate recorded a similar advance, increasing by one and seven-tenths of a percentage point.

"The national economic downturn appeared to have a negative impact in October on Michigan's already weak labor market," said Rick Waclawek, director of DLEG's Bureau of Labor Market Information and Strategic Initiatives.

The U.S. jobless rate in October jumped by four-tenths of a percentage point to 6.5 percent.

Monthly Labor Force Trends & Highlights

• Michigan's unemployment rate in October was the highest monthly rate for the state since July 1992.
  
  
• The state's year-to-date average jobless rate through October was 8.1 percent, above the 2007 annual average rate of 7.2 percent.
  
  
• Total employment in Michigan continued its downward trend in October.  Total employment has declined every month since January.
  
  
• Michigan's work force has fallen by 74,000 or 1.5 percent since October 2007.
  
  
• Since October 2007, statewide unemployment increased by 84,000 or 22.5 percent.  National unemployment rose at a faster pace (+38.3 percent) over the same period.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

Detroit Metropolitan Area's October Jobless Rate Up

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in October increased five-tenths of a percentage point to 9.0 percent.  The area's total employment level fell over the month by 17,000 and unemployment rose by 10,000.  The net result was a slight reduction in the MSA's labor force.

From October 2007 to October 2008, the metropolitan area's jobless rate rose by one and one-tenth percentage points.  Since October 2007, total employment fell by 35,000 and unemployment advanced by 23,000.  The area's work force declined by 11,000 in this period.

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

Widespread Decline in October Payroll Jobs

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs fell in September by 20,000 to total 4,154,000.  The majority of the state's major industry sectors recorded minor to moderate payroll job loss over the month.  Declines were posted in trade, transportation and utilities (-5,000), leisure and hospitality services (-4,000), government (-3,000) and manufacturing (-3,000).  Lesser declines were registered in several other key sectors, while the remaining sectors showed little change.

Industry Employment Trends and Highlights

• October marked the fourth consecutive month of payroll job declines in Michigan.  In that period, the state has lost 64,000 jobs, which is ninety percent of the state's over-the-year job loss.
  
  
• Retail trade continued its downward trend with a job reduction of 3,000 over the month.  Since January, 13,000 jobs have been lost in this sector.
  
  
• With job declines in October, professional and business services has recorded its fifth monthly job loss in a row.  Since October 2007, this sector's job count is down by 4,000.
  
  
• Government jobs in October were at their lowest level in 2008.  Within government, the local government and local government education sub-sectors recorded most of the over-the-year declines.
  
  
• From October 2007 to October 2008, payroll jobs in Michigan fell by 71,000 or 1.7 percent.  Manufacturing (-30,000), construction (-16,000), trade, transportation and utilities (-14,000) and government (-10,000) registered the vast majority of the state's over-the-year job loss.
  
  
• Since October 2007, education and health services (+12,000) was the only major industry sector in Michigan to display job growth.
  
  
• Seasonally adjusted average weekly hours and earnings of production workers in manufacturing declined over the month as well as over the year.

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."

Read more Michigan Department of Labor & Economic Growth press releases.