Michigan Unemployment Rises

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January 3, 2008 - Seasonally unadjusted unemployment rates increased over the month in 12 of Michigan's 17 major labor market areas, according to the Michigan Department of Labor and Economic Growth. In November, total employment and labor force levels advanced in most regions.

Unemployment rates declined over the month in four areas, most notably in the Monroe and Detroit-Warren-Livonia Metropolitan Statistical Areas (MSAs), due to recalls from October layoffs in the auto industry. The jobless rate in the Battle Creek MSA was unchanged over the month.

"Minor jobless rate increases in the southern part of Michigan and large rate increases in northern Michigan are typical for November," said Rick Waclawek, director of the Bureau of Labor Market Information & Strategic Initiatives. "The seasonal loss of tourism and construction jobs this month was compensated by holiday related hiring in the retail sector."

From October to November, the majority of the state's 17 major labor markets showed little movement in their respective jobless rates, with nine areas recording rate changes of 0.2 of a percentage point or less. With the exception of the state's three northernmost labor markets, increases were limited to half of a percentage point or less. Typical seasonal jobless rate hikes of over a full percentage point occurred in both the Northeast and Northwest Lower Michigan Regions along with the Upper Peninsula.

Regional Unemployment Rates Up Since November 2006

From November 2006 to November 2007, jobless rates increased in 16 of the state's major labor market areas. Rate increases over the year were moderate and ranged from 0.3 to 0.7 of a percentage point, with an average rise of a half percentage point. The jobless rate in the Detroit-Warren-Livonia MSA was unchanged since November 2006.

Total Employment Up Over Month, Down Over Year

From October to November, total employment levels increased in 13 regions with an average gain of a little under 1.0 percent. The state's three northern labor markets posted large seasonal drops in employment ranging from 1.2 to 2.0 percent. Total employment was essentially unchanged in the Niles-Benton Harbor MSA over the month.

Since November 2006, total employment declined in 16 regions, with significant drops in a number of areas. Total employment rose over the year in the Niles-Benton Harbor MSA.

Labor Force Levels Up Over Month, Down Over Year

In November, labor force levels increased in 12 regions, declined in four areas, and were essentially unchanged in the Northeast Lower Michigan Region.

From November 2006 to November 2007, labor force levels fell in 15 regions, increased in the Niles-Benton Harbor MSA, and were little changed in the Kalamazoo-Portage MSA.

Overall Payroll Jobs Flat in November

The monthly survey of employers indicated that seasonally unadjusted payroll jobs in Michigan were essentially unchanged in November, edging upward by just 1,000 to total 4,305,000. Seasonal job gains in retail trade (+12,000), education and health services (+5,000), and government (+3,000) were offset by seasonal cutbacks in leisure and hospitality services (-11,000) and construction (-7,000). All other major industry sectors were little changed in November.

The increase in retail trade jobs was evident throughout the state as merchants hired additional workers for the holiday season. The upward advances in the education and health service sector and government were primarily due to typical employment additions in both private and public education. The job cuts in leisure and hospitality services and construction occurred in almost all metropolitan areas.

Most metropolitan areas in the state reported very little net change in payroll employment over the month.

From November 2006 to November 2007, seasonally unadjusted payroll jobs fell statewide by 78,000 or 1.8 percent. Of the 14 metropolitan areas, 10 reported job declines while four displayed gains. The majority of metropolitan areas recorded mostly moderate changes in payroll jobs since November 2006. In the 10 areas that showed job loss since November 2006, only three metro regions recorded significant drops. Jobs fell in the Detroit area by 33,000, in the Flint MSA by 5,000 and in the Saginaw-Saginaw Township North MSA by 3,000. Payroll jobs increased moderately over the year in the Kalamazoo-Portage, Niles-Benton Harbor and Grand Rapids-Wyoming MSAs.

Over the year, manufacturing, construction, and retail trade employment were down in most metropolitan areas, while jobs in health services were up in nearly all regions.

County Jobless Rates Up Over Month, Year

Sixty-three of Michigan's 83 counties recorded moderate jobless rate increases in November, with a median increase of 0.7 of a percentage point. The largest rate advances took place in the state's northern areas. Unemployment rates declined over the month in 13 counties, while rates were unchanged in seven. The most pronounced jobless rate drop of 1.7 percentage points was posted in Monroe County, and reflected recalls from short-term layoffs in the auto-industry.

From November 2006 to November 2007, unemployment rates were up in 69 of the state's counties, down in 11 counties, and unchanged in the remaining three counties. Over-the-year county rate increases averaged a half percentage point.

Note: Data in this release is not seasonally adjusted. As a result, employment and unemployment trends may differ from previously released Michigan seasonally adjusted data.

A breakdown of seasonally unadjusted November workforce estimates for Michigan and its 17 major labor market areas follows, along with a listing of county jobless rates for November.

Source: Michigan Department of Labor and Economic Growth