Michigan's December Unemployment Rate Climbs

2007 Annual Rate Increases

January 16, 2007 - Michigan's seasonally adjusted unemployment rate in December increased by two-tenths of a percentage point to 7.6 percent, according to data released today by the Michigan Department of Labor & Economic Growth (DLEG). Total employment declined by 21,000 as unemployment rose by 13,000. As a result, the state's labor force edged downward by 8,000 over the month.

Michigan's December 2007 jobless rate was four-tenths of a percentage point above the state's December 2006 rate of 7.2 percent. The national rate rose by six-tenths of a percentage point in the same period.

"Michigan's jobless rate has remained in the mid seven percent range since August," said Rick Waclawek, director of DLEG's Bureau of Labor Market Information and Strategic Initiatives.

Monthly Labor Force Trends & Highlights

* From December 2006 to December 2007, total employment in Michigan fell by 90,000 or 1.9 percent. Total employment nationally edged upward by 0.2 percent in the same time frame.

* Since December 2006, statewide unemployment rose by 17,000 or 4.6 percent, significantly less than the 13.2 percent increase nationally in the same period.

* The national jobless rate in December rose by three-tenths of a percentage point over the month to 5.0 percent.

Michigan's 2007 Preliminary Annual Average Labor Force Trends & Highlights

Michigan's preliminary annual average unemployment rate in 2007 was 7.2 percent. Total employment averaged 4,679,000 in 2007, while unemployment averaged 361,000. The state's annual labor force level was 5,041,000.

"The most significant trend in Michigan's labor market in 2007 was the decline in the state's work force," said Waclawek, "This has not occurred since 2003, and was primarily due to buyouts and continued restructuring in the auto industry."

* Michigan's preliminary 2007 jobless rate increased by three-tenths of a percentage point from the 2006 annual rate of 6.9 percent. The state's annual average jobless rates have hovered around 7.0 percent since 2003. However, the 2007 annual unemployment rate was the highest since the 1993 annual rate of 7.4 percent.

* From 2006 to 2007, total employment in Michigan fell by 51,000 or 1.1 percent, while unemployment increased by 10,000 or 2.8 percent.

* The state's labor force declined by 40,000 in 2007 from 2006. Michigan's workforce had been steadily increasing since 2003.

Detroit Metropolitan Area's December Jobless Rate Jumps

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in December jumped by eight-tenths of a percentage point to 8.5 percent. Total employment fell by 24,000 and unemployment rose by 17,000 as the area's labor force decreased by 7,000.

From December 2006 to December 2007, the metropolitan area's jobless rate rose by nine-tenths of a percentage point. Since December 2006, total employment and the labor force fell in the metro area by 56,000 and 40,000 respectively. Unemployment increased in that period by 16,000.

Detroit MSA 2007 Annual Average Labor Force Data

The Detroit-Warren-Livonia MSA preliminary 2007 annual average unemployment rate of 7.5 percent increased by three-tenths of a percentage point from the area's 2006 annual rate of 7.2 percent. This marked the first year since 2003 that the metro area's annual jobless rate registered an increase. From 2003 through 2006, the MSA's annual rates had been steady at 7.2 percent. From 2006 to 2007, total employment declined by 15,000 and unemployment advanced by 6,000. The metro area's labor force decreased by 9,000 in that period.
December Statewide Payroll Jobs Little Changed

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs edged upward in December by 5,000 to total 4,248,000. For the second consecutive month, payroll jobs were little changed in most industry sectors. Moderate job gains in education and health services (+3,000) and professional and business services (+2,000) were somewhat offset by a decline in manufacturing (-2,000). The remainder of the major industry sectors showed only minor job gains or losses in December.
Industry Employment Trends and Highlights

* In the second half of 2007, several of the state's industry sectors showed comparative stability. From July to December, job counts were steady in trade, transportation and utilities, professional and business services, and in leisure and hospitality services. Manufacturing, financial activities and government reported the largest losses in that period.

* With another monthly gain in December, education and health services reached a record high of 600,000 jobs in Michigan. This sector has produced steady growth throughout 2007.

* From December 2006 to December 2007, payroll jobs in Michigan fell by 78,000 or 1.8 percent. In that period, the industry sectors showing the most significant job loss included manufacturing (-25,000), government (-17,000), construction (-16,000), and trade, transportation and utilities (-12,000).

* Seasonally adjusted average weekly hours and earnings of production workers in manufacturing increased over the month, as well as over the year.

Source: Michigan Department of Labor & Economic Growth

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