Michigan's September Jobless Rate Moves Up

October 18, 2017

 

Michigan’s seasonally adjusted unemployment rate in September increased over the month by four-tenths of a percentage point to 4.3 percent, according to data released today by the Michigan Department of Technology, Management & Budget (DTMB).  The number of unemployed rose in September by 19,000 while total employment was essentially flat.  The net result was a 17,000 advance in the state’s workforce.

The Michigan jobless rate in September 2017 was seven-tenths of a percentage point below the state’s September 2016 rate of 5.0 percent.  The national jobless rate also declined by seven-tenths of a percentage point over this period.  The state’s unemployment rate in September was one-tenth of a percentage point above the national rate.  The U.S. jobless rate declined by two-tenths of a percentage point to 4.2 percent in September.

“For the first time since April, Michigan’s workforce increased as a relatively large number of individuals entered the labor market seeking employment.  Many of these entrants into the job market did not immediately find work,” said Jason Palmer, director of the Bureau of Labor Market Information and Strategic Initiatives.  “However, payroll jobs in Michigan edged up in September.”

Monthly Labor Force Trends & Highlights

September marked the second consecutive month the state recorded an unemployment rate increase after rate reductions were recorded for five months in a row from March through July.

Michigan’s September jobless rate was well below the state’s January rate (5.2 percent), and was similar to the 2017 year-to-date average rate of 4.5 percent.

The state’s September unemployment rate was above the national rate for the first time since April.  The Michigan and U.S. rates have been similar since mid-year 2015.

The state’s third quarter 2017 jobless rate of 4.0 percent declined by three-tenths of a percentage point from the 4.3 percent second quarter 2017 rate.  This was the lowest quarterly rate posted in Michigan since the 3.8 percent rate displayed in the third quarter 2000.  However, Michigan had over 300,000 fewer employed in the third quarter 2017 as compared to the third quarter 2000.

From September 2016 to September 2017, total employment rose in Michigan by 40,000 or 0.9 percent while the number of unemployed fell by 32,000 or 13.3 percent.  Michigan’s unemployment reduction over this period was similar to the national decline of 14.0 percent, however the state lagged behind the national total employment growth rate of 1.6 percent since September 2016.

MICHIGAN
Labor Force Estimates

Seasonally Adjusted
(Data in Thousands)

 

September
2016

August
2017

September
2017

Monthly
Change

Yearly
Change

Civilian Labor  Force

4,843

4,833

4,850

17

7

Employment

4,602

4,643

4,642

-1

40

Unemployment

241

190

209

19

-32

Rate (Percent)

5.0

3.9

4.3

xxx

xxx

 

Detroit Metropolitan Area’s September Jobless Rate Rises

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA’s) seasonally adjusted unemployment rate in September rose by four-tenths of a percentage point to 3.6 percent.  This was the first monthly jobless rate hike in the region since February.  During September, the area’s workforce grew by 10,000 as total employment edged up by 2,000 and the number of unemployed increased by 9,000.  Although minor, the over-the-month total employment gain in the Detroit MSA was the eighth monthly increase so far in 2017.  The September workforce advance was the first monthly increase since April.  The region’s jobless rate in September remained below both the state and the U.S. September rates.

From September 2016 to September 2017, the Detroit metropolitan area’s jobless rate fell by one and eight-tenths percentage points.  From September 2016 to September 2017, the region’s total employment level rose by 48,000 or 2.4 percent.  The area posted an 11,000 or 0.5 percent labor force gain over this period.

Detroit-Warren-Dearborn MSA
Labor Force Estimates

Seasonally Adjusted
(Data in Thousands)

 

September
2016

August
2017

September
2017

Monthly
Change

Yearly
Change

Civilian Labor  Force

2,076

2,077

2,087

10

11

Employment

1,963

2,009

2,011

2

48

Unemployment

113

67

76

9

-37

Rate (Percent)

5.4

3.2

3.6

xxx

xxx

 

Solid Gain in September Payroll Jobs

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs rose in September by 10,000 to 4,403,000.  Over-the-month job gains were posted in Professional and business services (+8,000), Education and health services (+4,000) and Leisure and hospitality services (+4,000).  Somewhat offsetting these gains were job reductions in Manufacturing (-5,000), Trade, transportation and utilities (-2,000) and Government (-2,000).  Michigan’s remaining major job sectors were essentially unchanged over the month.

Industry Employment Trends and Highlights                    

The overall September job gain was the state’s fourth consecutive monthly increase and the seventh monthly advance so far in 2017.

The September job gains in Professional and business services and Education and health services pushed both sector’s job counts to record highs.

The over-the-month job reduction in Manufacturing reflected production adjustment layoffs in the state’s auto industry.

Retail trade, a sub-sector of Trade, transportation and utilities, recorded a 2,000 job decline in September.  This continues a mostly downward trend recorded since late 2016.  From September 2016 to September 2017, Retail trade jobs were down by 8,000 or 1.6 percent.

From September 2016 to September 2017, payroll jobs in Michigan increased by 62,000 or 1.4 percent, which slightly outpaced the 1.2 percent national growth rate over this period.  Since September 2016, all major job sectors in the state reported job gains with the exception of Trade, transportation and utilities (-5,000).

Seasonally adjusted average weekly hours and earnings of production workers in manufacturing increased slightly over the month, as well as over the year.

MICHIGAN
Payroll Employment Estimates

Seasonally Adjusted
(Data in Thousands)

 

September
2016

August
2017*

September
2017**

Monthly
Change***

Yearly
Change***

Total Nonfarm Payroll Jobs

4,341

4,393

4,403

10

62

Natural Resources & Mining

7

7

7

0

0

Construction

155

162

163

1

8

Manufacturing

601

607

602

-5

2

Transportation Equipment

180

182

177

-5

-3

Trade, Transportation & Utilities

787

784

783

-2

-5

Retail Trade

476

470

468

-2

-8

Information

58

58

58

0

1

Financial Activities

213

218

218

0

5

Professional & Business Services

653

663

671

8

18

Education & Health Services

668

669

674

4

6

Leisure & Hospitality Services

426

432

435

4

9

Other Services

170

175

175

0

6

Government

603

617

616

-2

12

* Final data for August 2017
** Preliminary data for September 2017
*** Change calculated using unrounded data

 

Hours & Earnings for Production Workers
Seasonally Adjusted

Manufacturing

 

September
2016

August
2017*

September
2017**

Monthly
Change***

Yearly
Change***

Average Weekly Earnings

$880.84

$893.24

$896.59

$3.35

$15.75

Average Weekly Hours

43.0

43.0

43.1

0.1

0.1

Transportation Equipment

 

September
2016

August
2017*

September
2017**

Monthly
Change***

Yearly
Change***

Average Weekly Earnings

$1,074.42

$1,111.23

$1,112.56

$1.33

$38.14

Average Weekly Hours

45.9

47.5

47.9

0.4

2.0

 

# # #