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Michigan's September Jobless Rate Increases

Contact: Paula Stevens (517) 373-9280
Agency: Licensing and Regulatory Affairs

October 14, 2009 – Michigan's seasonally adjusted unemployment rate in September edged upward by one-tenth of a percentage point to 15.3 percent, according to data released today by the Michigan Department of Energy, Labor & Economic Growth (DELEG).  Total employment decreased by 14,000 and unemployment increased slightly by 4,000, as the state's labor force recorded a 10,000 reduction over the month.

The U.S. unemployment rate in September also increased by one-tenth of a percentage point over the month to reach 9.8 percent.

Michigan's September 2009 jobless rate was six and four-tenths percentage points above the state's September 2008 rate of 8.9 percent.  In the same period, the national jobless rate increased by three and six-tenths percentage points.

"Michigan's unemployment rate was largely unchanged in September, as a modest recall of auto workers from temporary layoff was countered by job losses in the service sector," said Rick Waclawek, director of DELEG's Bureau of Labor Market Information and Strategic Initiatives.  "The state jobless rate, which rose sharply by five percentage points from December 2008 to June 2009, has stabilized somewhat since June."

Monthly Labor Force Trends & Highlights

  • The state's jobless rate has been fairly steady since June (June's rate was 15.2 percent).  In the first half of the year, monthly unemployment rate increases averaged seven-tenths of a percentage point.

  • After recording four consecutive monthly gains from April to July, Michigan's workforce has trended downward the last two months.

  • In the first half of 2009, monthly employment losses in Michigan averaged 43,000 per month.  Since July, monthly employment declines have moderated to about 11,000.

  • From the second quarter to the third quarter 2009, unemployment in Michigan increased by 52,000 while the quarterly jobless rate rose by one and one-tenth percentage points to reach 15.2 percent.  The state's quarterly unemployment rates have increased for nine consecutive quarters since the third quarter 2007.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

 

September
2008

August
2009

September
2009

Change

       

Month

Year

Civilian Labor  Force

4,914

4,845

4,835

-10

-79

Employment

4,479

4,109

4,095

-14

-384

Unemployment

435

736

740

4

305

Rate (Percent)

8.9

15.2

15.3

xxx

xxx

 

Detroit Metropolitan Area's September Jobless Rate Continues Upward

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in September increased by half a percentage point to reach 17.8 percent.  Unemployment increased by 10,000 over the month while employment tracked downward by 4,000.  The over-the-month changes in September were relatively moderate for the area.  Prior to September, monthly employment declines averaged 20,000 while unemployment increases had averaged 19,000 in the MSA this year.

From September 2008 to September 2009, the metropolitan area's jobless rate nearly doubled, advancing by eight and eight-tenths percentage points.  Since September 2008, total employment fell in the metropolitan area by 179,000 and unemployment advanced by 184,000.

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

 

September
2008

 August
 2009

September
2009

Change

       

Month

Year

Civilian Labor Force

2,095

2,091

2,098

7

3

Employment

1,907

1,730

1,726

-4

-179

Unemployment

188

362

372

10

184

Rate (Percent)

9.0

17.3

17.8

xxx

xxx

 

Decline in Government Jobs Push September Payroll Jobs Downward

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs declined in September by 22,000 to total 3,826,000.  Job cuts over the month were recorded in government

(-21,000), trade, transportation and utilities (-8,000), and leisure and hospitality services (-6,000).  Lesser reductions were posted in construction (-3,000) and education and health services (-3,000).  Somewhat offsetting these declines were job gains in professional and business services (+11,000) and manufacturing (+7,000).  The remaining major industry sectors recorded only minor changes over the month.

Industry Employment Trends and Highlights

  • Overall job losses have moderated in Michigan since the middle of the year.  In the first half of 2009, job reductions averaged 33,000 a month.  Since July, job declines averaged 19,000 per month.

  • Since the major restructuring in the auto industry that occurred in May and June, manufacturing jobs have increased in the state for three consecutive months.

  • Recent changes in seasonal hiring patterns in the education sector contributed part of the September payroll job movements in government and professional and business services.

  • Education and health services reported its second consecutive monthly job decline in September.  After steadily expanding throughout 2008, job gains have moderated in 2009.  However, this category remains the only major sector in the state to display an employment increase over the year.

  • After exhibiting job gains from the spring to the middle of summer, leisure and hospitality services recorded job losses over the last two months.  The September job count matched the April level.

  • From September 2008 to September 2009, payroll jobs in Michigan fell by 309,000 or 7.5 percent.  In that period, nearly all of the state's major industry sectors registered significant job loss.

  • Seasonally adjusted average weekly hours and earnings of production workers in manufacturing declined over the month.  Average earnings declined over the year, but hours increased slightly.
MICHIGAN

Payroll Employment Estimates

Seasonally Adjusted

(Data in Thousands)

                   
         

September

August*

September**

CHANGE***

         

2008

2009

2009

MONTH

YEAR

                   

Total Nonfarm Payroll Jobs

4135

3847

3826

-22

-309

 

Natural Resources & Mining

8

7

7

0

-1

 

Construction

151

120

117

-3

-34

 

Manufacturing

566

457

464

7

-102

   

Transportation Equipment

167

117

122

5

-45

 

Trade, Transportation & Utilities

768

711

703

-8

-65

   

Retail Trade

477

451

444

-7

-33

 

Information

62

55

55

0

-7

 

Financial Activities

202

189

190

0

-13

 

Professional & Business Services

549

474

485

11

-63

 

Education & Health Services

609

617

614

-3

5

 

Leisure & Hospitality Services

396

390

384

-6

-13

 

Other Services

176

169

171

2

-5

 

Government

649

658

637

-21

-12

                   
   

* Final data for August

       
   

** Preliminary data for September

       
   

*** Change calculated using unrounded data

   
                   

Hours & Earnings for Production Workers

Seasonally Adjusted

                   

Manufacturing

                   
         

September

August

September

CHANGE

         

2008

2009

2009

MONTH

YEAR

                   
   

Average Weekly Earnings

$909.10

$925.87

$898.23

 -$27.64    

  -$10.87 

   

Average Weekly Hours

41.7

42.7

42.1

     -0.6

     0.4

                   

Transportation Equipment

                   
   

Average Weekly Earnings

 $1,206.49

$1,229.16

$1,179.96

  -$49.20  

  -$26.53

   

Average Weekly Hours

 42.7

43.9

42.3

     -1.6

     -0.4

 

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."

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