August 13, 2008 – Michigan's seasonally adjusted unemployment rate in July stayed flat at 8.5 percent, according to data released today by the Michigan Department of Labor & Economic Growth (DLEG).  Total employment fell by 29,000 and unemployment was little changed, declining slightly by 4,000.  As a result, the state's labor force fell over the month by 33,000.

Michigan's July 2008 jobless rate increased by one and four-tenths percentage points above the state's July 2007 rate of 7.1 percent.  In the same period, the national jobless rate rose by a full percentage point.

"From 2007 to 2008, Michigan and the nation have shown similar labor market trends; increased unemployment, and job cuts," said Rick Waclawek, director of DLEG's Bureau of Labor Market Information and Strategic Initiatives.

Monthly Labor Force Trends & Highlights

• Michigan's annual average unemployment rate in 2007 was 7.2 percent, while the state's average jobless rate for the first seven months in 2008 was 7.7 percent.  The U.S. jobless rate recorded a slightly larger six-tenths of a percentage point increase in the same time frame.
  
  
• Total employment in the state has declined every month this year since January.
  
  
• With another monthly decline in the labor force from June to July, Michigan's work force has recorded a reduction of 59,000 or 1.2 percent over the year.
  
  
• Since July 2007, statewide unemployment rose by 65,000 or 18.4 percent.  National unemployment increased by 23.1 percent in the same period.
  
  
• The national jobless rate in July advanced by two-tenths of a percentage point to 5.7 percent.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

Detroit Metropolitan Area's July Jobless Rate Down

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in July declined seven-tenths of a percentage point to 8.6 percent.  This rate was only slightly above the state's 8.5 percent rate in July.  Over the month, the area's labor force reported a reduction of 20,000 as total employment edged downward by 3,000 and unemployment fell by 16,000.

From July 2007 to July 2008, the metropolitan area's jobless rate rose by eight-tenths of a percentage point.  Since July 2007, total employment dropped by 38,000 and unemployment rose by 16,000.  The area's work force declined by 23,000 in this period.

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

Marginal Decrease in Payroll Jobs

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs declined slightly in July by 5,000 to total 4,213,000.  July was highlighted by moderate offsetting job gains and losses.  Declines in professional and business services (-5,000), trade, transportation and utilities (-4,000), and leisure and hospitality services (-4,000) were somewhat offset by increases in government (+5,000) and manufacturing (+3,000). The remainder of the major industry sectors recorded mostly minor changes over the month.

Industry Employment Trends and Highlights

• Leisure and hospitality services posted its first monthly job loss since April, and has shed 2,000 jobs since July 2007.
  
  
• Manufacturing jobs edged upward in July, and increased for the third straight month after strike related layoffs occurred in the auto industry earlier this year.
  
  
• The financial activities sector has reported job declines every month since January.  Over the year, this category has shown a decrease of 6,000 jobs.
  
  
• Education and health services continued its upward trend with a small monthly gain in July.  Since January, 4,000 jobs have been added to this sector.
  
  
• From July 2007 to July 2008, payroll jobs in Michigan fell by 49,000 or 1.1 percent.  Manufacturing (-26,000) and construction (-16,000) have registered the brunt of the job loss in this period.  Most other sectors recorded minor to moderate job declines over the year.
  
  
• Since July 2007, education and health services (+11,000) was the only major industry sector in Michigan to display significant job growth.  Professional and business services posted a relatively small increase.
  
  
• Seasonally adjusted average weekly hours and earnings of production workers in manufacturing increased over the month, as well as over the year.

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."

Read more Michigan Department of Labor & Economic Growth press releases.