January 20, 2010 – Michigan's seasonally adjusted unemployment rate in December edged downward by one-tenth of a percentage point to 14.6 percent, according to data released today by the Michigan Department of Energy, Labor & Economic Growth (DELEG).  The rate decline reflected fewer persons in the job market seeking employment.  Both total employment (-20,000) and unemployment (-11,000) decreased, resulting in a statewide labor force decline of 31,000 over the month.

The U.S. unemployment rate in December was unchanged from November's 10.0 percent.

The state's jobless rate in December 2009 was four and four-tenths percentage points above the December 2008 rate of 10.2 percent.  The national jobless rate rose by two and six-tenths percentage points over this period.

"Michigan's labor market situation in 2009 can be seen in two different perspectives" said Rick Waclawek, director of DELEG's Bureau of Labor Market Information and Strategic Initiatives.  "The first half of the year was marked by a severe deterioration of the labor market due to the national recession and restructuring in the auto industry, while unemployment levels stabilized in the second half of 2009." .

Modest recalls of laid off auto workers and a slower pace of job loss in the service sector helped to stabilize the state jobless rate in the second half of 2009.

Monthly Labor Force Trends & Highlights

• December marked the third consecutive month of minor jobless rate declines in Michigan.  Since September, the state's rate decreased by seven-tenths of a percentage point.
  
  
• Since the onset of the national recession in December 2007, the unemployment rates for both Michigan and the U.S. have doubled.  The national unemployment rate in December 2007 was 5.0 percent, while Michigan's rate was 7.3 percent that month.
  
  
• Michigan's labor force total of 4,813,000 in December was the lowest level reported in 2009, and has fallen by 72,000 or 1.5 percent since December 2008.
  
  
• Since December 2008, unemployment in Michigan increased by 205,000 or 41.3 percent.  Unemployment nationally rose by 3,867,000 or 33.9 percent in the same period.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

Michigan's 2009 Preliminary Annual Average Labor Force Data

Michigan's preliminary annual average unemployment rate in 2009 was 14.0 percent.  Total employment averaged 4,168,000 in 2009, while unemployment averaged 680,000.  The state's annual labor force level was 4,848,000.

• Michigan's preliminary annual average unemployment rate in 2009 rose sharply by five and six-tenths percentage points from the 2008 annual rate of 8.4 percent.  The national annual average unemployment rate in 2009 was 9.3 percent, three and a half percentage points above the 2008 annual rate of 5.8 percent.
  
  
• The state's 2009 preliminary annual jobless rate was the third highest since 1976 (the current official series dates back to 1976).  Only the 15.6 percent rate recorded in 1982 and the 14.6 percent rate registered in 1983 were higher.  However, the five and six-tenths percentage point increase from 2008 to 2009 marked the most pronounced annual jump on record.  The next largest annual increase was the four and two-tenths percentage point advance reported from 1979 to 1980.
  
  
• From 2008 to 2009, total employment fell in Michigan by 351,000 or 7.8 percent, while unemployment rose by 264,000 or 64.5 percent.
  
  
• The state's annual average labor force level declined by 88,000 or 1.8 percent from 2008 to 2009.
  
  
• There was a large increase over the year in the average number of weeks individuals remained unemployed in Michigan.  Unemployment duration rose from an average of 23 weeks in 2008 to 30 weeks in 2009.

Detroit Metropolitan Area's December Unemployment Decreases

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in December declined by six-tenths of a percentage point to 15.8 percent.  Both the area's unemployment and labor force decreased by 15,000 over the month while employment was essentially unchanged. 

The 15.8 percent jobless rate for the MSA in December was the lowest rate for the area since May. 

Total employment for the area has been relatively stable since mid summer.  Most of the area's 2009 employment loss and unemployment increase occurred in the first half of the year 

From December 2008 to December 2009, the metropolitan area's jobless rate advanced by five and nine-tenths percentage points.  Since December 2008, total employment fell in the metropolitan area by 150,000 or 7.9 percent and unemployment increased by 119,000 or 57.5 percent.  Over this period, the area's labor force declined by 31,000 or 1.5 percent.

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

Detroit Metropolitan Area's 2009 Annual Average Labor Force Data

The Detroit-Warren-Livonia MSA's preliminary 2009 annual average unemployment rate of 15.4 percent rose sharply by six and six-tenths percentage points from the 2008 annual jobless rate of 8.8 percent.  From 2008 to 2009, the area's annual total employment level fell by 158,000 or 8.2 percent while unemployment increased by 138,000 or 75 percent.  The Detroit MSAs labor force level declined by 21,000 from 2008 to 2009.  The 15.4 percent annual rate for the area was the second highest on record behind the 15.7 percent rate recorded in 1983 (the official current series dates back to 1983).

Statewide Payroll Jobs Decrease in December

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs declined in December by 16,000 to total 3,831,000.  Mostly minor job losses were widespread throughout the majority of the state's industry sectors, and were led by a decline in manufacturing of 7,000.  Lesser decreases were posted in construction (-3,000), leisure and hospitality services (-3,000), government (-2,000) and professional and business services (-2,000).  Somewhat offsetting the various job cuts was a gain of 4,000 jobs in education and health services.  The remaining major industry sectors recorded only minor decreases or essentially no change over the month.

Industry Employment Trends and Highlights

• In 2009, the vast majority of overall job loss occurred in the first half of the year.  Job losses averaged 33,000 per month from January through June.  In the second half of 2009, monthly losses averaged a mere 2,000.
  
  
• Although manufacturing jobs fell by 7,000 from November to December, this sector has been relatively stable since the summer.  However, over 100,000 jobs were lost statewide in manufacturing in the first half of 2009, during the period of major restructuring within the auto industry.
  
  
• Retail trade jobs recorded essentially no change from November to December.  However since September, retail trade was down 5,000 jobs, reflecting less than normal hiring for the holiday season.
  
  
• Jobs in professional and business services rebounded in the last quarter of 2009 after slumping mid-year.  The December job level in this sector was similar to that of early 2009.  This rebound can be partially attributed to gains in the temporary help category.
  
  
• Education and health services has shown some instability in 2009, recording job gains in only six of the 12 months.  Yet this sector continues to be the only major category to report job growth over the year, increasing by 11,000 since December 2008.
  
  
• After recording job gains from May to its 2009 peak in July, leisure and hospitality services has lost jobs for five consecutive months.
  
  
• From December 2008 to December 2009, payroll jobs in Michigan fell by 207,000 or 5.1 percent.  Manufacturing (-91,000), trade, transportation and utilities (-47,000), and construction (-24,000) recorded the largest numerical losses in this period.  The most pronounced percentage drops were posted in construction (-16.8%), manufacturing (-16.7%) and information (-12.5%).  Within manufacturing, transportation equipment manufacturing dropped by 28.7 percent over the year.
  
  
• Seasonally adjusted average weekly hours and earnings of production workers in manufacturing increased over the month as well as over the year.

The Department of Energy, Labor & Economic Growth (DELEG) 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 Energy, Labor & Economic Growth."