December 17, 2003

Brenda Njiwaji, director of the Office of Labor Market Information for the Michigan Department of Labor & Economic Growth, announced today that Michigan’s seasonally adjusted unemployment rate in November dropped by six-tenths of a percentage point to 7.0 percent from October’s 7.6 percent.  Unemployment fell by 34,000.  However, employment also fell, declining by 11,000 as the state civilian labor force recorded a reduction of 46,000.

Michigan’s November jobless rate was the lowest for the state since May’s 6.8 percent.  November’s unemployment rate drop was the only significant decline so far in 2003.  Prior to November, the state’s jobless rate trended upward most months in 2003.

“The jobless rate certainly moved in the right direction,” Njiwaji said.  “However, it was primarily due to labor force withdrawal.  Many individuals without a job left the workforce in November while employment continued to decline.”

The state’s November 2003 jobless rate was almost a full percentage point higher than the November 2002 rate of 6.1 percent. 

Over the year, unemployment nationwide increased a mere 0.4 percent in comparison to Michigan’s 17.7 percent advance.

Third Year State Rate Above National Rate
Michigan’s unemployment rate was well above the November 2003 U.S. rate of 5.9 percent.  November marked the 36^th consecutive month that the Michigan unemployment rate was above the national rate.  Prior to that period, the state’s jobless rate had been below the national rate for more than five and a half years.

Employment Down Since January
Since January 2003, employment in Michigan declined by 43,000 or 0.9 percent while the jobless level increased by 41,000 or 12.9 percent; the state civilian labor force remained essentially unchanged.

Payroll Employment Declines
According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs in November declined by 14,000 to total 4,395,000.  Virtually all of the payroll employment job losses over the month were recorded in professional and business services (-10,000) and manufacturing (-5,000).  Slightly offsetting these declines was an employment increase in trade, transportation, and utilities (+3,000).  The remaining industry sectors recorded minor offsetting gains or declines.  November’s payroll employment total was the lowest for the state in 2003.

Payroll jobs in Michigan fell by 79,000 or 1.8 percent since November 2002.  In that period, the majority of the payroll employment decline was confined to three of Michigan’s 11 major industry sectors.  Significant job losses over the year were registered in manufacturing (-36,000), professional and business services (-20,000), and government (-19,000).

Although down slightly over the year, employment in trade, transportation, and utilities (which is the largest industry sector and includes retail trade) has trended upward in 2003.  Since January, this sector registered payroll job gains of almost 9,000 or 1.1 percent.

From November 2002 to November 2003, only two of Michigan’s major industry categories have displayed gains.  Employment was up over the year in education and health services and in financial activities.

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