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Michigan's August Jobless Rate Declines
September 27, 2018
Lansing – Michigan’s seasonally adjusted unemployment rate in August declined by two-tenths of a percentage point to 4.1 percent, according to data released today by the Michigan Department of Technology, Management & Budget (DTMB). The number of unemployed in Michigan fell by 11,000 in August while total employment was little changed. The net result was a 12,000 reduction in the state’s labor force.
The Michigan jobless rate in August 2018 was five-tenths of a percentage point below the state’s August 2017 rate of 4.6 percent. The national jobless rate also declined by five-tenths of a percentage point over this period. The state’s unemployment rate in August was two-tenths of a percentage point above the national rate. The U.S. jobless rate was unchanged over the month at 3.9 percent.
“The state’s unemployment rate decrease in August was primarily due to a reduction in the labor force as fewer individuals actively sought employment during the month,” said Jason Palmer, director of the Bureau of Labor Market Information and Strategic Initiatives. “However, Michigan’s labor market situation in 2018 has been positive.”
Monthly Labor Force Trends & Highlights
- The state’s August unemployment rate was the lowest for Michigan since the 4.0 percent rate recorded in November 2000. However, the state’s labor force and total employment levels in November 2000 were over 250,000 above current levels.
- Michigan’s jobless rate has decreased by seven-tenths of a percentage point since the 2018 high rate of 4.8 percent recorded in February.
- The state’s total employment level in August edged down slightly by 1,000, which broke a string of five consecutive months of gains since March. Evan with the minor reduction in August, total employment in the state has advanced by 28,000 or 0.6 percent since December 2017.
- Michigan’s August workforce decline was the second monthly reduction in a row.
- Since August 2017, the number of unemployed in Michigan has fallen by 23,000 or 10.3 percent, which was slightly outpaced by the 12.5 percent reduction nationwide.
MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)
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August 2017 |
July 2018 |
August 2018 |
Change |
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Month |
Year |
Civilian Labor Force |
4,890 |
4,910 |
4,898 |
-12 |
8 |
Employment |
4,666 |
4,698 |
4,697 |
-1 |
31 |
Unemployment |
224 |
212 |
201 |
-11 |
-23 |
Rate (Percent) |
4.6 |
4.3 |
4.1 |
xxx |
xxx |
Detroit Metropolitan Area’s August Jobless Rate Edges Down
The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA’s) seasonally adjusted unemployment rate in August declined slightly over the month by one-tenth of a percentage point to 4.2 percent. This was the lowest jobless rate in the region since the July 2017 rate of 4.1 percent. From July to August, total employment in the region declined slightly by 1,000 while the number of unemployed decreased by 4,000. The area’s workforce recorded a 4,000 reduction over the month. The number of unemployed in the Detroit area has trended downward since April.
From August 2017 to August 2018, the Detroit metropolitan area’s workforce, total employment, and number of unemployed were essentially unchanged. This steadiness in the region’s labor market is reflected in the average unemployment rates as the eight-month average 2018 rate of 4.4 percent matched the 2017 annual rate.
Detroit-Warren-Dearborn MSA
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)
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August 2017 |
July 2018 |
August 2018 |
Change |
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Month |
Year |
Civilian Labor Force |
2,114 |
2,118 |
2,114 |
-4 |
0 |
Employment |
2,025 |
2,026 |
2,025 |
-1 |
0 |
Unemployment |
89 |
92 |
88 |
-4 |
-1 |
Rate (Percent) |
4.2 |
4.3 |
4.2 |
xxx |
xxx |
Payroll Jobs Up Moderately in August
According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs increased moderately in August by 5,000 to 4,435,000. Jobs rose statewide over the month in Education and health services (+3,000) and Trade, transportation and utilities (+2,000). The state’s remaining major industry sectors registered minor job changes of 1,000 or less over the month.
Industry Employment Trends and Highlights
- Payroll jobs in Michigan have risen for six of the first eight months of 2018.
- Michigan payroll jobs from December to August increased by 40,000 or 0.9 percent, which somewhat outpaced the 34,000 or 0.8 percent gains recorded over the same period in 2017.
- After dipping slightly in July, jobs in Education and health services rebounded in August to essentially match this sector’s 2018 high total of 679,000 registered in June. Jobs in Education and health services have grown by 5,000 or 0.7 percent since August 2017.
- The over-the-month job gain in Trade, transportation and utilities was this sector’s first monthly increase since March.
- Construction jobs in Michigan posted a minor gain in August, which was a continuation of steady growth displayed throughout 2018. Construction jobs advanced in the state for seven of the first eight months of the year.
- From August 2017 to August 2018, payroll jobs in Michigan increased by 56,000 or 1.3 percent, which was slightly below the national gain over this period of 1.6 percent. The highest percentage job growth rates in Michigan sectors since August 2017 were Construction (+8.9%), Other services (+4.2%), Mining and logging (+2.8%), Leisure and hospitality services (+2.2%), Professional and business services (+1.4%) and Manufacturing (+1.3%).
- Seasonally adjusted average weekly earnings of production workers in manufacturing increased slightly over the month, while average weekly hours recorded a minor decline. Earnings rose moderately over the year, but weekly hours moved slightly downward.
MICHIGAN |
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Payroll Employment Estimates |
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Seasonally Adjusted |
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(Data in Thousands) |
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August |
July* |
August** |
CHANGE*** |
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2017 |
2018 |
2018 |
MONTH |
YEAR |
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Total Nonfarm Payroll Jobs |
4,378 |
4,429 |
4,435 |
5 |
56 |
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Natural Resources & Mining |
7 |
7 |
7 |
0 |
0 |
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Construction |
164 |
178 |
179 |
1 |
15 |
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Manufacturing |
615 |
623 |
623 |
0 |
8 |
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Transportation Equipment |
187 |
189 |
191 |
2 |
3 |
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Trade, Transportation & Utilities |
790 |
791 |
793 |
2 |
3 |
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Retail Trade |
474 |
471 |
471 |
1 |
-2 |
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Information |
56 |
55 |
55 |
0 |
-1 |
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Financial Activities |
218 |
220 |
220 |
0 |
2 |
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Professional & Business Services |
649 |
658 |
658 |
0 |
9 |
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Education & Health Services |
674 |
676 |
679 |
3 |
5 |
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Leisure & Hospitality Services |
434 |
442 |
443 |
1 |
10 |
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Other Services |
168 |
176 |
175 |
-1 |
7 |
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Government |
604 |
604 |
603 |
-1 |
-1 |
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* Final data for July 2018 |
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** Preliminary data for August 2018 |
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*** Change calculated using unrounded data |
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Hours & Earnings for Production Workers |
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Seasonally Adjusted |
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Manufacturing |
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August |
July |
August |
CHANGE |
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2017 |
2018 |
2018 |
MONTH |
YEAR |
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Average Weekly Earnings |
$895.60 |
$913.30 |
$918.01 |
$4.71 |
$22.41 |
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Average Weekly Hours |
43.1 |
43.2 |
42.8 |
-0.4 |
-0.3 |
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