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Michigan's January Jobless Rate Up Sharply
Temporary Auto Layoffs Continue Due to Drop in Auto Sales

Contact: Mario L. Morrow (517) 373-9280
Agency: Licensing and Regulatory Affairs

March 5, 2009 - Michigan's seasonally adjusted unemployment rate in January rose by one and four-tenths percentage points to 11.6 percent (the December 2008 rate was revised downward to 10.2 percent), according to data released today by the Michigan Department of Energy, Labor & Economic Growth (DELEG).  Total employment dropped by 89,000 over the month while unemployment jumped by 69,000.

Michigan's January 2009 jobless rate was four and three-tenths percentage points above the state's January 2008 rate of 7.3 percent.  In the same period, the national jobless rate recorded an advance of two and seven-tenths percentage points.

"In January, job reductions in manufacturing were substantial," said Rick Waclawek, director of DELEG's Bureau of Labor Market Information and Strategic Initiatives.  "A good portion of these job cuts were due to temporary layoffs.  High inventories led to the extension of December holiday plant shutdowns into the month of January."

Monthly Labor Force Trends & Highlights

  • The largest monthly jumps over the past year in the state's jobless rates occurred in the second half of 2008.  From July 2008 to January 2009, Michigan's unemployment rate increased by three and three-tenths percentage points.

  • Total employment in Michigan has fallen for 20 consecutive months since May 2007.

  • With the January reduction in the state's labor force, Michigan's work force has contracted over the year by 118,000 or 2.4 percent.

  • Michigan increased by 202,000 or 55.6 percent.  Unemployment nationally rose by a similar 53.8 percent in the same period.

  • The U.S. jobless rate in January rose by four-tenths of a percentage point to 7.6 percent.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

 

January
2008

December
2008

January
2009

Change

       

Month

Year

Civilian Labor  Force

4,982

4,885

4,864

-21

-118

Employment

4,619

4,388

4,299

-89

-320

Unemployment

363

496

565

69

202

Rate (Percent)

7.3

10.2

11.6

xxx

xxx

 

Substantial Increase in Detroit Metropolitan Area's January Jobless Rate

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in January rose by two percentage points to 11.9 percent.  This was the highest jobless rate for the metropolitan area since April 1984. The area's total employment level fell over the month by 63,000 and unemployment rose by 39,000 as the labor force declined by 25,000.

From January 2008 to January 2009, the metropolitan area's jobless rate increased by four full percentage points.  Since January 2008, total employment dropped by 130,000 and unemployment expanded by 79,000.  The area's work force declined by 53,000 in this period.

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

 

January
2008

December
2008

January
2009

Change

       

Month

Year

Civilian Labor Force

2,124

2,096

2,071

-25

-53

Employment

1,956

1,889

1,826

-63

-130

Unemployment

167

207

246

39

79

Rate (Percent)

7.9

9.9

11.9

xxx

xxx

 

Cuts in Manufacturing Reduce January Payroll Jobs

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs fell in January by 61,000 to total 3,977,000.  The primary source of the state's over-the-month loss was a 53,000 drop in manufacturing jobs.  These manufacturing job cuts were centered in the auto industry, and reflected the extension of December holiday layoffs into January.  Other significant declines in January were posted in professional and business services (-9,000), trade, transportation and utilities (-7,000), and financial activities (-3,000).  Somewhat offsetting these reductions, job gains were recorded in government (+7,000), construction (+3,000), and other services (+3,000).  The state's remaining major industry sectors reported little change over the month.

Industry Employment Trends and Highlights

  • January marked the seventh consecutive monthly decline in statewide payroll jobs.  Job losses accelerated in Michigan in the last quarter of 2008.  Since October, statewide job declines totaled 146,000, which was over half the job losses recorded in the state from January 2008 to January 2009.

  • Education and health services, which had reported fairly strong monthly job growth for most of 2008, remained essentially flat since October.

  • Both the professional and business services and the financial activities sectors have consistently lost jobs since early 2008.

  • Leisure and hospitality services, a sector that held relatively steady throughout a good portion of 2008, lost 10,000 jobs since October.

  • From January 2008 to January 2009, payroll jobs in Michigan fell by 264,000 or 6.2 percent.  The most significant over-the-year losses were recorded in manufacturing (-114,000), professional and business services (-60,000), trade, transportation and utilities (-49,000), construction (-18,000), leisure and hospitality services (-14,000), and financial activities (-12,000).

  • Education and health services (+9,000) was the only major industry sector in the state to report a gain since January 2008.

  • Seasonally adjusted average weekly hours and earnings of production workers in manufacturing declined significantly over the month as well as over the year.
MICHIGAN

Payroll Employment Estimates

Seasonally Adjusted

(Data in Thousands)

                   
         

January

December*

January**

CHANGE***

         

2008

2008

2009

MONTH

YEAR

                   

Total Nonfarm Payroll Jobs

4241

4038

3977

-61

-264

 

Natural Resources & Mining

8

8

8

0

0

 

Construction

164

143

146

3

-18

 

Manufacturing

605

544

491

-53

-114

   

Transportation Equipment

190

159

123

-36

-66

 

Trade, Transportation & Utilities

784

743

735

-7

-49

   

Retail Trade

488

465

464

0

-23

 

Information

63

61

60

-1

-3

 

Financial Activities

209

199

197

-3

-12

 

Professional & Business Services

577

525

516

-9

-60

 

Education & Health Services

604

612

613

1

9

 

Leisure & Hospitality Services

403

391

389

-1

-14

 

Other Services

177

172

174

3

-3

 

Government

649

641

648

7

-1

                   
   

* Final data for December

       
   

** Preliminary data for January

       
   

*** Change calculated using unrounded data

   
                   

Hours & Earnings for Production Workers

Seasonally Adjusted

                   

Manufacturing

                   
         

January

December

January

Change

         

2008

2008

2009

MONTH

YEAR

                   
   

Average Weekly Earnings

$971.48

$872.77

$821.45

-$51.32      

-$150.03 

   

Average Weekly Hours

43.3

40.8

38.2

      -2.6

      -5.1

                   

Transportation Equipment

                   
   

Average Weekly Earnings

 $1,268.89

 $1,154.79

 $1,022.08

-$132.71

-$246.81

   

Average Weekly Hours

 45.0

41.2

35.8

     -5.4

     -9.2

 

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."

Read more releases from the Michigan Department of Energy, Labor & Economic Growth.

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