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May Unemployment Rates Rise in Nearly All of Michigan's Regional Labor Markets Sluggish Overall Economy Dampens Seasonal Employment Hunt in Many Areas

Contact:  Mario L. Morrow 517-373-9280
Agency: Labor & Economic Growth


June 26, 2008 - Seasonally unadjusted unemployment rates increased over the month in 16 of Michigan's 17 major labor market areas, according to the Michigan Department of Labor and Economic Growth.  In May, total employment declined in the majority of regions while labor force levels advanced in almost all.

"From April through July, tens of thousands of individuals in Michigan, particularly young workers, enter the work force seeking summer and seasonal employment.  In May, typical employment opportunities were less available than usual, especially in the southern part of the state," said Rick Waclawek, director of the Bureau of Labor Market Information & Strategic Initiatives.

From April to May, jobless rate increases were significant in the state's southern regions, ranging from 1.4 to 2.4 percentage points.  In Michigan's northern areas, unemployment rate changes were minimal.  Jobless rates edged upward by 0.3 of a percentage point in both the Upper Peninsula and the Northwest Lower Michigan Region and declined slightly by 0.2 of a percentage point in the Northeast Lower Michigan Region.

Jobless Rates Up Since May 2007
From May 2007 to May 2008, unemployment rates rose substantially in all 17 major labor market areas, with a median hike of 1.3 percentage points.  The largest over-the-year increases of over 2.0 percentage points were recorded in the Flint, Monroe, and Saginaw-Saginaw Township North Metropolitan Statistical Areas (MSAs).  Since May 2007 only two regions, the Upper Peninsula and in the Battle Creek MSA, showed jobless rate advances under a full percentage point. 

Total Employment Down Over Month, Year
From April to May, total employment declined in 11 areas, with a moderate average decrease of 0.5 percent.  Three regions registered either a minor increase or no change, while the state's three northernmost areas displayed seasonally significant gains due to the onset of the summer tourism season.  The Northwest and Northeast Lower Michigan Regions along with the Upper Peninsula recorded a combined total employment gain of nearly 11,000.

Since May 2007, total employment fell in 16 regions.  Over-the-year declines varied in magnitude within the various areas, but averaged nearly 2.0 percent.  Total employment levels moved upward over the year in the Niles-Benton Harbor MSA.

Labor Force Levels Up Over Month, Mixed Over Year
In May, labor force levels rose in 16 regions.  These were typical seasonal advances in most areas and averaged 1.5 percent.  The labor force in the Ann Arbor MSA declined slightly over the month.

From May 2007 to May 2008, work force levels declined in nine regions, increased in seven regions, and were essentially unchanged in the Holland-Grand Haven MSA.

Seasonal Industries Boost Payroll Jobs
The monthly survey of employers indicated that seasonally unadjusted payroll jobs in Michigan rose in May by 65,000 to total 4,256,000.  Gains were widespread and seasonal throughout most industry sectors and metropolitan areas.  Increases were recorded in leisure and hospitality services (+24,000), construction (+13,000), professional and business services (+10,000), and in trade, transportation and utilities (+10,000). 

Manufacturing jobs edged up by 6,000 over the month due to recalls from short-term auto-related layoffs in the Detroit-Warren-Livonia MSA.  Somewhat offsetting the statewide manufacturing gain was a decline of 2,000 auto industry jobs in the Lansing-East Lansing MSA due to a major strike in the area.

State government education employment declined by 18,000 in May due to the end of the winter/spring semester at many colleges and universities throughout Michigan.  The decreases in May were most evident in the Ann Arbor, Detroit-Warren-Livonia, and Kalamazoo-Portage MSAs.

All metro areas registered a seasonal boost over the month in leisure and hospitality services, construction, and retail trade.

From May 2007 to May 2008, seasonally unadjusted payroll jobs fell statewide by 70,000 or 1.6 percent.  Of the 12 major metropolitan areas in the state, nine reported job declines over the year while two displayed increases.  The largest over-the-year metro job losses were recorded in the Detroit-Warren-Livonia (-47,000), Flint (-9,000), Lansing-East Lansing (-3,000), and Saginaw-Saginaw Township North (-3,000) MSAs.  Payroll jobs rose moderately over the year in the Niles-Benton Harbor MSA, while the Muskegon-Norton Shores MSA reported a minor gain.  The payroll job count in the Grand Rapids-Wyoming MSA was essentially unchanged since May 2007.

Over the year, manufacturing and construction jobs were down in all metropolitan areas, while jobs in health services were up in nearly all regions.

County Jobless Rates Up Over Month, Year
Seventy-one of Michigan's 83 counties posted jobless rate increases in May, with a median advance of 1.3 percentage points.  Rates were down in ten counties over the month, and unchanged in two.

From May 2007 to May 2008, unemployment rates were up in 80 counties with an average increase of 1.2 percentage points.

Note:  Data in this release is not seasonally adjusted.  As a result, employment and unemployment trends may differ from previously released Michigan seasonally adjusted data.

A breakdown of seasonally unadjusted May workforce estimates for Michigan and its 17 major labor market areas follows, along with a listing of county jobless rates for May.

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

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.

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

 



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