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Michigan's October Jobless Rate Declines

Agency: Licensing and Regulatory Affairs

November 18, 2009 – Michigan's seasonally adjusted unemployment rate in October edged downward by two-tenths of a percentage point to 15.1 percent, according to data released today by the Michigan Department of Energy, Labor & Economic Growth (DELEG).  Total employment increased by 22,000 while unemployment dipped by 6,000, as the state's labor force advanced by 16,000 over the month.

The U.S. unemployment rate in October increased by four-tenths of a percentage point to reach 10.2 percent.

Michigan's October 2009 jobless rate was six percentage points above the state's October 2008 rate of 9.1 percent.  In the same period, the national jobless rate increased by three and six-tenths percentage points.

"Michigan's jobless rate remained near 15 percent, where it has been since June" said Rick Waclawek, director of DELEG's Bureau of Labor Market Information and Strategic Initiatives.  "However, modest job gains were recorded in October in construction and health care."

Jobs also spiked in October in professional and business services (+25,000), but this increase is likely overstated due to a shift in seasonal employment patterns in the industry.

Monthly Labor Force Trends & Highlights

  • After three consecutive months of labor force decline, Michigan's workforce rebounded with a gain of 16,000 in October 2009.

  • Total employment in Michigan advanced by 22,000 to reach 4,116,000.  This was the first time since May 2007 that total employment has increased in the state.

  • Michigan's average unemployment rate for the first ten months of 2009 was 13.9 percent.  The state's 2008 annual rate was 8.4 percent.

  • Since October 2008, unemployment in Michigan increased by 284,000 or 63.3 percent.  Unemployment nationally rose by 53.6 percent over this period.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

 

October
2008

September
2009

October
2009

Change

       

Month

Year

Civilian Labor  Force

4,912

4,833

4,849

16

-63

Employment

4,463

4,094

4,116

22

-347

Unemployment

449

739

733

-6

284

Rate (Percent)

9.1

15.3

15.1

xxx

xxx

 

Detroit Metropolitan Area's September Jobless Rate Down Slightly

The Detroit-Warren-Livonia Metropolitan Statistical Area's ( MSA's) seasonally adjusted unemployment rate in October decreased by four-tenths of a percentage point to 17.3 percent (September's jobless rate of 17.7 percent was revised downward from 17.8 percent).  Unemployment fell by 10,000 over the month while employment rose by 9,000.   Employment expanded for the first time in the metropolitan area since April 2009.  From October 2008 to October 2009, the metropolitan area's jobless rate advanced by eight and one-tenth percentage points.  Since October 2008, total employment fell in the metropolitan area by 167,000 and unemployment increased by 168,000.

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

 

October
2008

September
 2009

October
2009

Change

       

Month

Year

Civilian Labor Force

2,095

2,097

2,095

-2

0

Employment

1,901

1,725

1,734

9

-167

Unemployment

194

372

362

-10

168

Rate (Percent)

9.2

17.7

17.3

xxx

xxx

 

October Payroll Jobs Increase

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs increased in October 2009 by 39,000 to total 3,860,000.  Job gains over the month were recorded in professional and business services (+25,000), education and health services (+11,000), and construction (+5,000). 

Since July 2009, professional and business sector jobs have increased by 6.7 percent due in part to the privatization of education related jobs from the local government sector.  Employment in local government has declined by 4.4 percent over the same time period. 

In October, a modest job addition was also recorded in manufacturing (+3,000).  Job cuts in leisure and hospitality services (-4,000) and trade, transportation and utilities (-3,000) slightly offset the gains recorded over the month.

Industry Employment Trends and Highlights

  • Nonfarm payroll jobs in Michigan rose to 3,860,000 in October 2009.  Since July 2009, total jobs have stabilized, reversing the trend of significant job losses in the first half of the year.

  • Professional and business services increased for the second consecutive month in October 2009, climbing to 512,000.  This job gain may be overstated as the impact of the privatization of educational support workers caused a seasonal employment shift in the sector.

  • Manufacturing jobs in the state edged up for the fourth consecutive month, rising to 464,000.

  • Trade, transportation and utilities jobs have declined steadily since October 2008.  Nearly 61,000 jobs have been lost over the year, with half the job losses occurring in retail trade.

  • Education and health services reversed the job trend from the prior two months and registered a job gain in October 2009.  Over the year, this job category remains the only major sector in the state to post job growth.

  • From October 2008 to October 2009, payroll jobs in Michigan fell by 263,000 or 6.4 percent.  Since October 2008, every major industry sector in the state, excluding education and health services, recorded significant job loss.

  • Seasonally adjusted average weekly hours and earnings of production workers in manufacturing increased over the month.  Both average weekly earnings and average weekly hours rose over the year.
MICHIGAN

Payroll Employment Estimates

Seasonally Adjusted

(Data in Thousands)

                   
         

October

September*

October**

CHANGE***

         

2008

2009

2009

MONTH

YEAR

                   

Total Nonfarm Payroll Jobs

4123

3821

3860

39

-263

 

Natural Resources & Mining

8

7

8

0

-1

 

Construction

150

118

123

5

-26

 

Manufacturing

560

461

464

3

-96

   

Transportation Equipment

165

121

121

1

-44

 

Trade, Transportation & Utilities

761

703

701

-3

-61

   

Retail Trade

474

445

442

-3

-32

 

Information

61

55

54

-1

-7

 

Financial Activities

202

189

189

1

-12

 

Professional & Business Services

546

486

512

25

-35

 

Education & Health Services

613

611

622

11

9

 

Leisure & Hospitality Services

399

386

382

-4

-18

 

Other Services

176

170

170

0

-6

 

Government

647

635

636

1

-11

                   
   

* Final data for September

       
   

** Preliminary data for October

       
   

*** Change calculated using unrounded data

   
                   

Hours & Earnings for Production Workers

Seasonally Adjusted

                   

Manufacturing

                   
         

October

September

October

CHANGE

         

2008

2009

2009

MONTH

YEAR

                   
   

Average Weekly Earnings

$897.76

$901.18

$936.09

   $34.91 

   $38.33 

   

Average Weekly Hours

41.3

42.3

43.5

        1.2

       2.2

                   

Transportation Equipment

                   
   

Average Weekly Earnings

 $1,179.84

 $1,196.13

$1,247.09

   $50.96 

   $67.25

   

Average Weekly Hours

 42.0

42.8

44.7

        1.9

        2.7

 

The Department of Energy, Labor & Economic Growth (DELEG) 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 Energy, Labor & Economic Growth."

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