December 15, 2004 – Michigan’s seasonally adjusted unemployment rate in November rose by four-tenths of a percentage point to 7.0 percent, according to data released by the Michigan Department of Labor & Economic Growth (DLEG).  Despite the increase, Michigan’s unemployment rate has declined six-tenths of a percentage point since November 2003, slightly exceeding the rate of decline nationally.

From November 2003 to November 2004, both the state and the nation have recorded similar percentage declines in both the number of unemployed and their respective jobless rates.  Joblessness declined in Michigan by eight percent and in the U.S. by seven percent since November 2003, while jobless rates for both have decreased by around a half percentage point.

“November’s jobless rate was the highest in Michigan for 2004, however, unemployment remains below last year’s levels,” said Bruce Weaver, acting director of DLEG’s Bureau of Labor Market Information and Strategic Initiatives. “November’s higher than expected job cuts in the manufacturing and temporary help sectors were related to production adjustments in the auto industry.”

Total employment in Michigan fell by 26,000 and unemployment increased by 16,000 as the state civilian labor force declined by 10,000.The statewide decline in total employment in November was the first over-the-month decrease since July.

Labor Force Trends & Highlights

• The state’s labor force, after dipping somewhat in mid-year 2004, was back up this fall to levels recorded in the early months of the year.

• Michigan’s unemployment rate declined six-tenths of a percentage point since November 2003.

• The November 2004 national jobless rate was 5.4 percent.

November Payroll Jobs Fall

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs declined by 12,000 in November to total 4,365,000.  Job losses over the month were recorded in professional and business services (-8,000), manufacturing (-7,000) and in leisure and hospitality services (‑4,000).  Offsetting these declines somewhat were small job gains in construction (+3,000), education and health services (+3,000) and government (+2,000).  All other industry categories registered minor payroll employment changes over the month.

Industry Employment Trends and Highlights

• Construction employment’s second consecutive monthly increase in November brought its job total to the second highest monthly level registered in 2004.  Over the year, construction employment was up by 3,000 or 1.4 percent.

• Despite the job decline in professional and business services over the month, this sector displayed an advance in employment over the year of 6,000 or 1.1 percent.

• The November drop in manufacturing jobs was concentrated in the auto sector.  However, manufacturing employment remains similar to June 2004 levels.

• Payroll jobs in Michigan fell by 39,000 or 0.9 percent since November 2003.  The majority of the job losses were concentrated in two industry sectors; trade, transportation and utilities (-21,000) and manufacturing (-19,000).

The Michigan Department of Labor  & Economic Growth is the newest department of state government.  It is charged with promoting economic growth, job creation and enhancing the quality of life for Michigan citizens.  Part of this mission includes meeting Michigan's workforce needs to enhance and maintain the economy.  To this end, the state's career and workforce development programs work with employers, K-12 schools, community colleges, and local Workforce Development Boards to operate a comprehensive career development system. 

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