July 20, 2005 – Michigan’s seasonally adjusted unemployment rate in June declined by three‑tenths of a percentage point to 6.8 percent, according to data released by the Michigan Department of Labor & Economic Growth (DLEG).  Both employment and unemployment levels fell over the month, decreasing by 20,000 and 18,000 respectively, dropping the statewide labor force level by 38,000.   Michigan’s June 2005 jobless rate is down two-tenths of a percentage point from the June 2004 rate of 7.0 percent.

“Job gains in both professional and health services led to the reduction in the jobless rate,” said Richard H. Waclawek, director of DLEG’s Bureau of Labor Market Information and Strategic Initiatives.  “However, fewer young people sought summer employment in Michigan than what is typically expected."

Monthly Labor Force Trends & Highlights

• Michigan’s June jobless rate was the lowest for the state since the April 2004 rate of 6.7 percent.
  
  
• For the first six months of 2005, the state jobless rate averaged 7.1 percent, identical to 2003 and 2004 averages.
                                                                                          
• June’s 345,000 statewide unemployment total was the lowest monthly level so far in 2005.  Since June 2004, unemployment decreased in Michigan by 11,000 or 3.1 percent.  In that same period, unemployment nationwide declined by 9.0 percent.
  
  
• The national jobless rate was 5.0 percent in June 2005.
  
  
• From the first quarter to the second quarter 2005, total employment increased by 30,000 in Michigan, while unemployment declined by 8,000.  The state’s quarterly jobless rate in that period edged downward from 7.1 to 7.0 percent.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

* Final estimates for May
** Preliminary estimates for June

Detroit Metropolitan Area’s June Jobless Rate Edges Downward

The Detroit-Warren-Livonia Metropolitan Statistical Area’s (MSA’s) seasonally adjusted unemployment rate in June decreased slightly over the month by one-tenth of a percentage point to 7.4 percent.  From May to June, employment and unemployment levels were little changed in the area. 

Over the year, the Detroit MSA’s jobless rate increased by three-tenths of a percentage point.  Since June 2004, employment in the MSA declined by 14,000 or 0.7 percent while unemployment increased by 6,000 or 3.8 percent.

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

* Final estimates for May
** Preliminary estimates for June

Professional and Health Services Show Job Gains

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs increased by 5,000 in June to total 4,374,000.  Job gains over the month were recorded in professional and business services (+8,000), education and health services (+6,000) and in trade, transportation and utilities (+4,000).  Somewhat offsetting these increases were job losses in manufacturing (-9,000).  In June, all other major industry sectors posted relatively minor changes in their respective job totals.

Industry Employment Trends and Highlights

• With the increase in professional and business services employment over the month, this sector registered its highest job total so far in 2005.
  
  
• Employment in education and health services continued its upward trend in June, primarily due to gains in the hospital industry.  Education and health services has consistently displayed job gains throughout the boom years of the 1990’s as well as through the sluggish recession and post-recession period of the last five years.
  
  
• While five of Michigan’s 11 major industry sectors have shown little change over the year, three sectors have displayed moderate growth.  Education and health services, leisure and hospitality services and trade, transportation and utilities recorded the largest job gains from June 2004 to June 2005.

The Department of Labor & Economic Growth (DLEG) 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 Labor & Economic Growth.”