June 18, 2008 – Michigan's seasonally adjusted unemployment rate in May increased one and six-tenths percentage points to 8.5 percent, according to data released today by the Michigan Department of Labor & Economic Growth (DLEG).  The number of unemployed rose by 82,000 while total employment fell by 56,000.  The net result was a 26,000 expansion of the state's labor force over the month.

Michigan's May 2008 jobless rate increased by one and four-tenths percentage points from the state's May 2007 rate of 7.1 percent.  In the same period, the national jobless rate rose by a full percentage point.

"This time of year numerous individuals, especially youth, typically enter the work force seeking seasonal employment.  Due to the overall sluggish economy, many were not successful as of May," said Rick Waclawek, director of DLEG's Bureau of Labor Market Information and Strategic Initiatives.  "This is an unusually large monthly shift in the jobless rate, so additional months of data will be needed to see if this higher jobless rate is sustained."

Monthly Labor Force Trends & Highlights

• The state's May 2008 jobless rate was the highest monthly rate in Michigan since October 1992.  However, the state's average unemployment rate of 7.4 percent for the first five months of 2008 was only two-tenths of a percentage point above the 2007 annual average rate of 7.2 percent.
  
  
• May marked the fourth consecutive monthly decline in the state's total employment level.
  
  
• Despite expansion over the month, Michigan's labor force has declined by 21,000 or 0.4 percent over the year.
  
  
• Since May 2007, statewide unemployment rose by 73,000 or 20.6 percent.  National unemployment increased by 23.7 percent in the same period.
  
  
• The national jobless rate in May jumped by half a percentage point to 5.5 percent.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

Detroit Metropolitan Area's May Jobless Rate Jumps

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in May rose significantly by one and nine-tenths percentage points to 9.3 percent.  The number of unemployed was up substantially by 41,000.  Total employment declined by 15,000 while the area's labor force increased by 25,000 over the month.

From May 2007 to May 2008, the metropolitan area's jobless rate advanced by one and six-tenths percentage points.  Since May 2007, total employment dropped by 42,000 while unemployment increased by 34,000.  The region's labor force was down by 8,000 in that period.

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

Payroll Jobs Up Slightly in May

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs edged upward in May by 6,000 to total 4,205,000.  Several industry sectors recorded modest gains in May including leisure and hospitality services (+4,000), professional and business services (+3,000), and manufacturing (+3,000).  These increases were offset somewhat by a decline in government jobs (-3,000).  The remainder of the major industry sectors recorded mostly minor changes over the month.

Industry Employment Trends and Highlights

• Manufacturing jobs rebounded slightly in May after recording large drops in the prior two months due to the impact of labor disputes in the auto industry.  However, May's manufacturing job count was still 23,000 below February's pre-strike level.
  
  
• The slight statewide payroll job increase in May halted the large drops of the prior two months.  From February to April, payroll jobs in Michigan fell by 36,000.
  
  
• With the increase in May, professional and business services posted its seventh consecutive monthly job gain.  This sector, as of May, has shown solid job growth over the year.
  
  
• From May 2007 to May 2008, payroll jobs in Michigan fell by 69,000 or 1.6 percent.  The most significant job losses in that period were confined to four of the state's 11 major industry sectors: manufacturing (-47,000), construction (-15,000), government (-11,000), and financial activities (-5,000).
  
  
• Since May 2007, education and health services (+10,000), and professional and business services (+6,000) were the only major industry sectors in Michigan to register job growth.
  
  
• 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."

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