Technology, Management and Budget
FOR IMMEDIATE RELEASE
Jan. 21, 2021
Caleb Buhs, email@example.com or 517-282-6018
LANSING, Mich. -- Michigan’s seasonally adjusted unemployment rate rose by five-tenths of a percentage point in December to 7.5 percent, according to data released today by the Michigan Department of Technology, Management & Budget. Total employment fell sharply by 154,000 over the month, while unemployment edged up by 14,000. Michigan’s workforce decreased significantly by 141,000 in December.
The national unemployment rate remained unchanged between November and December at 6.7 percent. The Michigan December jobless rate was 0.8 percentage points above the national rate. The U.S. unemployment rate advanced by 3.1 percentage points over the year, while the state rate increased by 3.6 percentage points since December 2019.
“Michigan’s labor market during 2020 was negatively impacted by the COVID-19 pandemic,” said Wayne Rourke, associate director of the Bureau of Labor Market Information and Strategic Initiatives. “The state’s annual unemployment rate exhibited a pronounced increase over the year, and payroll jobs plunged in 2020.”
Monthly labor force trends and highlights
Michigan’s 2020 preliminary annual average labor force data
Michigan’s preliminary annual average unemployment rate in 2020 was 9.7 percent, a significant jump of 5.6 percentage points above the 2019 annual average rate of 4.1 percent. This rate reflected pandemic-related job losses in Michigan. Total employment in Michigan averaged 4,392,000 in 2020, while total unemployment soared to 470,000. The state’s annual workforce level was 4,863,000 in 2020.
Annual average trends and highlights
Detroit metro area jobless rate advances over month
The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) seasonally adjusted jobless rate advanced by nine-tenths of a percentage point to 10.2 percent during December. Employment dropped significantly by 71,000 over the month, while unemployment edged up by 14,000, resulting in a net workforce reduction of 57,000 since November.
The Detroit metro region unemployment rate advanced by 6.2 percentage points since December 2019. Employment fell by 142,000 and unemployment rose by 133,000 over this period.
Detroit MSA 2020 preliminary annual average labor force trends
The Detroit-Warren-Dearborn MSA’s preliminary annual average jobless rate in 2020 was 11.0 percent, 6.7 percentage points above the 2019 average jobless rate of 4.3 percent. The metro area annual jobless rate during 2020 was 1.3 percentage points above the statewide annual unemployment rate.
Nonfarm jobs fall sharply in December and over the year
The monthly survey of employers registered a seasonally adjusted payroll job reduction of 64,000 over the month, or 1.6 percent, resulting in an employment total of 3,963,000.
The largest industry employment decline overwhelmingly occurred in Michigan’s leisure and hospitality sector, with a reduction of 60,000 jobs over the month. Restaurants and other firms providing entertainment services registered large pandemic-related job cuts in December.
Industry employment trends and highlights
For more detailed information, including data tables, view the full release.