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Michigan's February Jobless Rate Declines

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

March 23, 2011 – Michigan’s seasonally adjusted unemployment rate in February edged downward over the month by three-tenths of a percentage point to 10.4 percent, according to data released today  by the Michigan Department of Energy, Labor & Economic Growth (DELEG).  Total employment increased moderately by 11,000 while unemployment declined by 13,000.  The state’s labor force was little changed over the month.  Michigan’s unemployment rate was one and a half percentage points above the U.S. February rate of 8.9 percent.

The Michigan jobless rate in February 2011 was over three full percentage points below the February 2010 rate of 13.5 percent.  The national jobless rate decreased by eight-tenths of a percentage point over this period. 

“Michigan’s labor market situation was stable in February,” said Rick Waclawek, director of DELEG’s Bureau of Labor Market Information and Strategic Initiatives.  “However, since mid-2009, significant changes have occurred in the state’s workforce trends, as job levels have increased, the number of unemployed has fallen, and the number of workers active in the state labor force has declined.”

Monthly Labor Force Trends & Highlights

  • The state’s jobless rate has declined steadily since the most recent high of 14.1 percent recorded in September 2009.
  • In February, the number of unemployed in Michigan fell below the half million mark for the first time since November 2008.
  • The pace of monthly labor force decline in the state slowed in February to only 2,000.  Michigan has recorded consecutive monthly labor force reductions averaging 7,000 since April 2010.  In the broader view, Michigan’s current labor force is significantly below pre-recessionary levels.
  • From February 2010 to February 2011, unemployment in the state fell by nearly 24 percent.  Nationally, unemployment declined by 8 percent over the same period.
Note:  The data in this release reflects recently revised historical estimates. Seasonally adjusted labor force estimates for 1998, 2001 and 2006-2010 for Michigan and from 2006 to 2010 for the Detroit-Warren-Livonia MSA were revised.  Previously published data should be replaced with this new series.  In addition, this release reflects revised seasonally adjusted payroll job data for 2010.  For newly revised data, go to www.michigan.gov/lmi or contact DELEG at 313-456-3090.

 

Note on revision:  The U.S. Department of Labor, Bureau of Labor Statistics (BLS) has responsibility for developing the methodology followed by all 50 states in the production and revision of state employment and unemployment estimates.  Part of this methodology is a required annual data revision process which takes place in February of each year.

The impact of the revision process on 2010 estimates was larger than normal, due to the model re-estimation process, and the generally higher rates of unemployment.

This revised series now shows Michigan's annual jobless rate fell by 0.8 percentage points from 2009-2010.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

 

February
2010

January
2011

February
2011

Change

 

 

 

 

Month

Year

Civilian Labor  Force

4,818

4,742

4,740

-2

-78

Employment

4,169

4,234

4,245

11

76

Unemployment

650

508

495

-13

-155

Rate (Percent)

13.5

10.7

10.4

xxx

xxx

 

Detroit Metropolitan Area Labor Force and Jobless Rate Edge Down

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in February declined slightly over the month by two-tenths of a percentage point to 11.2 percent.  The area recorded a labor force reduction of 9,000 over the month as unemployment fell by 6,000.  The MSA registered a minor total employment decrease in February.  The Detroit area reported its lowest unemployment rate since the 10.7 percent rate in November 2008.

From February 2010 to February 2011, the Detroit metropolitan area's jobless rate fell by three and a half percentage points.  In this period, the MSA's total employment level increased by 1.2 percent while unemployment fell by 26 percent.  The area's labor force has dropped since February 2010 by nearly three percent.  Although relatively flat in February, total employment in the Detroit MSA has been showing slow but steady monthly gains since early 2010.

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

 

February
2010

January
2011

February
2011

Change

 

 

 

 

Month

Year

Civilian Labor Force

2,088

2,038

2,029

-9

-59

Employment

1,780

1,804

1,802

-2

22

Unemployment

308

233

227

-6

-81

Rate (Percent)

14.7

11.4

11.2

xxx

xxx

 

February Payroll Jobs Little Changed

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs edged slightly downward in February by 3,000 to 3,911,000.  A sharp job gain in professional and business services (+13,000) was more than offset by declines in several sectors. February job decreases were posted in manufacturing (-7,000), government (-6,000), and leisure and hospitality services (-3,000).  The state's remaining major industry sectors recorded minor offsetting job gains or declines over the month.

Industry Employment Trends and Highlights       

  • Although overall payroll jobs in Michigan declined slightly in February, the job totals posted so far in 2011 were well above levels recorded throughout 2010.
  • The February job movements in professional and business services and manufacturing were magnified by unusual seasonal patterns in job change in these two sectors.
  • The information and the financial activities sectors recorded significant job losses during the recent national recession.  Job levels in these two sectors have recently stabilized.
  • Since February 2010, payroll jobs in Michigan increased by 71,000 or 1.8 percent.  The most significant job gains in this period occurred in professional and business services (+34,000), manufacturing (+28,000), and education and health services (+16,000).
  • Over-the-year job losses in the state have been concentrated in two sectors; government (-19,000) and leisure and hospitality services (-6,000).
  • Seasonally adjusted average weekly hours and earnings of production workers in manufacturing increased over the month as well as over the year.

 

MICHIGAN

Payroll Employment Estimates

Seasonally Adjusted

(Data in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

February

January*

February**

CHANGE***

 

 

 

 

 

2010

2011

2011

MONTH

YEAR

 

 

 

 

 

 

 

 

 

 

Total Nonfarm Payroll Jobs

3840

3914

3911

-3

71

 

Natural Resources & Mining

7

7

7

0

0

 

Construction

122

130

128

-2

7

 

Manufacturing

463

498

491

-7

28

 

 

Transportation Equipment

124

141

136

-5

12

 

Trade, Transportation & Utilities

707

718

716

-2

10

 

 

Retail Trade

446

449

446

-2

1

 

Information

55

54

55

1

1

 

Financial Activities

187

187

188

2

1

 

Professional & Business Services

505

525

538

13

34

 

Education & Health Services

613

628

629

1

16

 

Leisure & Hospitality Services

376

373

370

-3

-6

 

Other Services

167

169

168

-2

1

 

Government

639

625

619

-6

-19

 

 

 

 

 

 

 

 

 

 

 

 

* Final data for January

 

 

 

 

 

 

** Preliminary data for February

 

 

 

 

 

 

*** Change calculated using unrounded data

 

 

 

 

 

 

 

 

 

 

 

 

Hours & Earnings for Production Workers

Seasonally Adjusted

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

February

January

February

CHANGE

 

 

 

 

 

2010

2011

2011

MONTH

YEAR

 

 

 

 

 

 

 

 

 

 

 

 

Average Weekly Earnings

$947.28

$959.25

$961.51

     $2.26

   $14.23 

 

 

Average Weekly Hours

43.7

44.2

44.5

        0.3

       0.8

 

 

 

 

 

 

 

 

 

 

Transportation Equipment

 

 

 

 

 

 

 

 

 

 

 

 

Average Weekly Earnings

 $1,256.56

 $1,266.84

$1,334.92

    $68.08

   $78.36

 

 

Average Weekly Hours

 44.6

45.5

47.1

       1.6

       2.5

 

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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