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Michigan's August Jobless Rate Declines

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

MICHIGAN

Labor Force Estimates

Seasonally Adjusted

(Data in Thousands)

 

August

2017

July

2018

August

2018

 

Change

 

 

 

 

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)

 

August

2017

July

2018

August

2018

 

Change

 

 

 

 

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

Payroll Employment Estimates

Seasonally Adjusted

(Data in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August

July*

August**

CHANGE***

 

 

 

 

 

2017

2018

2018

MONTH

YEAR

 

 

 

 

 

 

 

 

 

 

Total Nonfarm Payroll Jobs

4,378

4,429

4,435

5

56

 

Natural Resources & Mining

7

7

7

0

0

 

Construction

164

178

179

1

15

 

Manufacturing

615

623

623

0

8

 

 

Transportation Equipment

187

189

191

2

3

 

Trade, Transportation & Utilities

790

791

793

2

3

 

 

Retail Trade

474

471

471

1

-2

 

Information

56

55

55

0

-1

 

Financial Activities

218

220

220

0

2

 

Professional & Business Services

649

658

658

0

9

 

Education & Health Services

674

676

679

3

5

 

Leisure & Hospitality Services

434

442

443

1

10

 

Other Services

168

176

175

-1

7

 

Government

604

604

603

-1

-1 

 

 

 

 

 

 

 

 

 

 

 

 

* Final data for July 2018

 

 

 

 

 

 

** Preliminary data for August 2018

 

 

 

 

 

 

*** Change calculated using unrounded data

 

 

 

 

 

 

 

 

 

 

 

 

Hours & Earnings for Production Workers

Seasonally Adjusted

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August

July

August

CHANGE

 

 

 

 

 

2017

2018

2018

MONTH

YEAR

 

 

 

 

 

 

 

 

 

 

 

 

Average Weekly Earnings

$895.60

$913.30

$918.01

 $4.71      

 $22.41  

 

 

Average Weekly Hours

43.1

43.2

42.8

     -0.4

   -0.3

 

 

 

 

 

 

 

 

 

 

Transportation Equipment

 

 

 

 

 

 

 

 

 

 

 

 

Average Weekly Earnings

$1,115.87

  $1,167.11

  $1,208.12

   $41.01      

 $92.25     

 

 

Average Weekly Hours

47.4

47.0

47.8

       0.8

    0.4