July 18, 2007 - Michigan's seasonally adjusted unemployment rate in June increased by three-tenths of a percentage point to 7.2 percent from May's 6.9 percent, according to data released today by the Michigan Department of Labor & Economic Growth (DLEG).  Total employment fell by 23,000 and unemployment rose by 15,000.  The net impact over the month was a reduction of the state's labor force by 8,000.

Michigan's June 2007 jobless rate increased by half of a percentage point from the state's June 2006 rate of 6.7 percent.  Continued job cuts in manufacturing are a major factor in pushing the jobless rate upward in this period.

"The increase in the June jobless rate can be partially traced to the very competitive nature of the state's current labor market," said Rick Waclawek, director of DLEG's Bureau of Labor Market Information and Strategic Initiatives.  "Typically, many young people enter the work force this time of year seeking summer jobs.  Early indications are showing a more sluggish season for youth hiring."

Monthly Labor Force Trends & Highlights

• The June unemployment rate was the highest for the state thus far in 2007, and matched the December 2006 rate.  State jobless rates have hovered near 7.0 percent for the last four years.
  
  
• Michigan's work force has been trending downward in 2007 after edging upward since 2003.  From January to June, the state's labor force declined by 38,000 or 0.7 percent.
  
  
• From the first quarter 2007 to the second quarter 2007, Michigan's quarterly jobless rate rose from 6.7 to 7.1 percent.  In that period, employment fell by 44,000 while unemployment increased by 18,000.
  
  
• From June 2006 to June 2007, total employment in Michigan declined by 52,000 or 1.1 percent.  Total employment nationally rose by 1.2 percent in the same time frame.
  
  
• Since June 2006, statewide unemployment increased by 21,000 or 6.1 percent.  In that same period, unemployment nationally declined slightly by 0.7 percent.
  
  
• The national jobless rate in June was unchanged from the May rate of 4.5 percent.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in June jumped by a half percentage point to 7.7 percent from the May rate of 7.2 percent.  From May to June, the area experienced labor force expansion as both unemployment (+12,000) and employment (+4,000) increased.

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

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs increased in June by 5,000 to total 4,291,000.  Over-the-month changes in payroll job counts were mostly limited to three major industry sectors.  Gains occurred in government (+6,000), due to seasonal shifts in state and local education, and also in manufacturing (+4,000).  These were somewhat offset by job cuts in construction (-3,000).  The remaining major industry sectors were little changed over the month.

• June marked the first monthly advance in statewide payroll jobs since March.
  
  
• From January to June, payroll jobs declined in Michigan by 8,000.  This compares favorably to the first half of 2006 when payroll jobs fell by 23,000.
  
  
• Construction has consistently lost jobs in the state since early 2006; however, the pace of job loss has accelerated, with cuts of 12,000 since March 2007.
  
  
• After recording relatively large monthly declines in both April and May, jobs in financial activities leveled out in June.  This sector lost 4,000 jobs over the year.
  
  
• Professional and business services employment reached its highest recent job total in December 2006 (since 2002).  However, from December to June, this sector has registered employment declines each succeeding month.  Since December, job levels in this category dropped by 10,000.
  
  
• Education and health services (+9,000) and leisure and hospitality services (+4,000) are the only job growth industries in the state since June 2006.
  
  
• From June 2006 to June 2007, payroll jobs in Michigan fell by 54,000 or 1.3 percent.  In that period, manufacturing (-27,000), construction (-17,000), and trade, transportation and utilities (-13,000) recorded the vast majority of job loss.
  
  
• Seasonally adjusted average weekly hours and earnings of production workers in manufacturing decreased 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."