March 23, 2005 – Michigan’s seasonally adjusted unemployment rate in February increased over the month by four-tenths of a percentage point to 7.5 percent, according to data released by the Michigan Department of Labor & Economic Growth (DLEG).  While total employment edged upward by 2,000, growth in the state civilian labor force pushed the number of unemployed in Michigan-those actively seeking work- up by 22,000.  Overall growth in the labor force was 24,000 in February.  After falling to 7.1% in January, Michigan’s jobless rate returned to it’s December 2004 level (7.5%).

“The number of people working in Michigan grew in February, but so did the number of people looking for work”, said Bruce Weaver, acting director of DLEG’s Bureau of Labor Market Information and Strategic Initiatives.

Monthly Labor Force Trends & Highlights

• Michigan’s labor force expansion over the month lifted the state’s February labor force total to 5,111,000.  This was the highest level since August 2001.
  
  
• From February 2004 to February 2005, the number of employed statewide increased by 17,000. 
  
  
• Over the year, the number of unemployed individuals in Michigan increased by 26,000 as the state’s workforce grew by 0.9%.

Note:  Beginning with the data released for 2005, changes in the methodology for producing state labor force estimates were implemented by the U.S. Department of Labor, Bureau of Labor Statistics, in cooperation with all states.  All statewide monthly historical data for 1976-2004 was replaced with a re-estimated series. One of the improvements of the upgraded process is that over-the-year changes now will be more directly comparable than what was possible with the previous methodology.   Information on the redesign is available from the Bureau of Labor Statistics Web site at www.bls.gov/lau/lauschanges2005.htm, or contact DLEG’s Office of Labor Market Information at 313-456-3090.

Detroit Metropolitan Area’s February Jobless Rate Up

The Detroit Metropolitan Statistical Area’s (MSA’s) seasonally adjusted unemployment rate in February rose over the month by eight-tenths of a percentage point to 7.8 percent.  Over the month, employment edged downward by 2,000 as unemployment increased by 18,000.  Over the year, the Detroit MSA’s jobless rate increased by 1.1 percentage points as employment fell by 32,000 and unemployment increased by 22,000.

Note:  Beginning with the data released for 2005, changes in the methodology for producing Detroit metropolitan area labor force estimates were implemented by the U.S. Department of Labor, Bureau of Labor Statistics, in cooperation with Michigan’s DLEG.  For the first time, seasonally adjusted monthly labor force estimates will be available for the Detroit area, with the series starting in 1983.  The new area definition for the Detroit MSA includes the counties of Lapeer, Livingston, Macomb, Oakland, St. Clair and Wayne.  Information on the redesign is available from the Bureau of Labor Statistics Web site at www.bls.gov/lau/lauschanges2005.htm, or contact DLEG’s Office of Labor Market Information at 313‑456‑3090.

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs increased by 10,000 in February to total 4,387,000.  The majority of this gain was due to an increase in manufacturing employment (+9,000), which reflected recalls from short-term layoffs in the auto industry.  The remainder of the state’s major industry sectors recorded minor offsetting gains and losses over the month.  

Industry Employment Trends and Highlights

• February marked the first monthly increase in total statewide payroll jobs since August 2004.
  
  
• Although construction employment dipped slightly over the month, it has been very steady over the last 12 months.  In this period, this sector’s statewide employment total has remained very close to 191,000 each month.
  
  
• With its second consecutive modest monthly employment gain in February, leisure and hospitality services recorded its highest payroll job total in over a year.
  
  
• Payroll jobs in Michigan declined slightly by 8,000 or 0.2 percent since February 2004.  In that period, the only job losses of note took place in manufacturing (-13,000) and professional and business services (-7,000).

The Michigan Department of Labor  & Economic Growth is the newest department of state government.  It is charged with promoting economic growth, job creation and enhancing the quality of life for Michigan citizens.  Part of this mission includes meeting Michigan's workforce needs to enhance and maintain the economy.  To this end, the state's career and workforce development programs work with employers, K-12 schools, community colleges, and local Workforce Development Boards to operate a comprehensive career development system. 

Note to Editors:  Please ensure that the source for state unemployment rates reads “Michigan Department of Labor & Economic Growth.”