January 18, 2006 – Michigan’s seasonally adjusted unemployment rate in December edged-upward by one-tenth of a percentage point to 6.7 percent, according to data released by the Michigan Department of Labor & Economic Growth (DLEG).  The annual unemployment rate for 2005 showed a decline of three-tenths of a percentage point from the 2004 annual rate.

Michigan’s December 2005 jobless rate fell by eight-tenths of a percentage point from the December 2004 rate of 7.5 percent.  In the same period, the national jobless rate decreased by five-tenths of a percentage point. 

Monthly Labor Force Trends & Highlights

●    Labor force, total employment and the number of unemployed in the state were little changed over the month

·        December was the fifth consecutive month that the state’s jobless rate remained below 7.0 percent.  

·        With a slight increase over the month, Michigan’s labor force continued its upward trend in 2005. From January to December 2005, the state’s labor force increased by 52,000 or 1.0 percent.

·        Total employment in Michigan has been stable for the last four months, remaining within a narrow range around 4,795,000 since September.

2005 Preliminary Annual Average Labor Force Trends And Highlights

“2005 marked the first annual average unemployment rate decline in Michigan since 2000,” said Rick Waclawek, director of DLEG’s Bureau of Labor Market Information and Strategic Initiatives.  “Michigan’s 2005 jobless rate of 6.8 percent edged down three-tenths of a percentage point from the 2004 rate of 7.1 percent.”

Total employment averaged 4,765,000 in 2005, while the annual average unemployment level was 348,000.  From 2004 to 2005, unemployment in Michigan declined by 12,000 or 3.3 percent.  The state’s 2005 average labor force was 5,113,000.

MICHIGAN

Labor Force Estimates

Seasonally Adjusted

(Data in Thousands)

* Final estimates for November

** Preliminary estimates for December

Detroit Metropolitan Area’s December Jobless Rate Little Changed

The Detroit-Warren-Livonia Metropolitan Statistical Area’s (MSA’s) seasonally adjusted unemployment rate in December increased slightly over the month by one-tenth of a percentage point to 7.3 percent (November’s jobless rate was revised upward from 7.1 to 7.2 percent).  From November to December, the area’s total employment level declined by 7,000 while unemployment increased by 4,000 as the MSA’s labor force was little changed.

From December 2004 to December 2005, the Detroit MSA’s jobless rate declined by three-tenths of a percentage point.  Since December 2004, employment increased slightly in the area by 4,000 and unemployment decreased by 6,000, leaving the labor force essentially unchanged.

The Detroit-Warren-Livonia Metropolitan Statistical Area’s (MSA’s) preliminary 2005 annual average unemployment rate of 7.2 percent increased slightly over the 2004 annual rate of 7.1 percent.

Detroit-Warren-Livonia MSA

Labor Force Estimates

Seasonally Adjusted

(Data in Thousands)

* Final estimates for November

** Preliminary estimates for December

December Payroll Jobs Increase

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs increased by 10,000 in December to total 4,363,000.  Noteworthy job gains over the month were recorded in professional and business services (+5,000), government (+4,000) and other services (+2,000).  Somewhat offsetting these gains was a decline in education and heath services (-3,000).  All other major industry categories were little changed over the month.

Click here for payroll data.

Industry Employment Trends and Highlights

·        Michigan’s total payroll job count increased for the second consecutive month in December to reach September levels.  In this period, manufacturing employment has remained essentially unchanged.

·        Payroll jobs throughout most major statewide industry sectors have been relatively steady since August.

·        Employment in professional and business services has steadily increased throughout 2005.  Over the year, this sector has recorded an increase of 8,000 jobs statewide.

·        Since December 2004, most of the statewide payroll job declines were recorded in three sectors: manufacturing, government, and trade, transportation and utilities.  Within trade, transportation and utilities, the retail trade sector recorded the vast majority of job loss.  Over the year, most other job categories have remained stable.

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 news releases.