January Unemployment Rates Increase Seasonally in All of Michigan's Regional Labor Markets

Area Jobless Rates Little Changed Over Year

March 19, 2008 - Seasonally unadjusted unemployment rates increased over the month in all of Michigan's 17 major labor market areas, according to the Michigan Department of Labor and Economic Growth. In January, total employment levels declined seasonally in all regions.

"Regional labor markets in January were dominated by seasonal patterns with the onset of winter and the end of the holiday season," said Rick Waclawek, director of the Bureau of Labor Market Information & Strategic Initiatives. "Over the year, there were mostly modest changes in area unemployment rates; however, the majority of regions throughout the state reported job losses and a reduced labor force."

From December to January, jobless rate increases ranged from 0.1 to 1.4 percentage points with an average advance of 0.4 of a percentage point. The largest over-the-month hikes occurred in the Monroe and Flint Metropolitan Statistical Areas (MSAs) along with the Northeast Lower Michigan Region.

Jobless Rates Mixed, But Little Changed Since January 2007
From January 2007 to January 2008, unemployment rates increased slightly in eight regions with the foremost hikes of around a half percentage point reported in the Flint and Saginaw-Saginaw Township North MSAs. Jobless rates declined in six areas over the year with the largest decrease of a half percentage point recorded in the Lansing-East Lansing MSA. The unemployment rates in the Ann Arbor and Detroit-Warren-Livonia MSAs along with the Upper Peninsula were unchanged since January 2007.

Total Employment Down Over Month, Year
From December to January, all 17 regions registered typically large seasonal drops in total employment ranging from 0.6 to 3.0 percent. The most pronounced declines took place in the state's three northernmost labor market regions.

Since January 2007, total employment declined in 16 regions, with a median drop of 1.7 percent. The most significant reductions occurred in the Flint and Saginaw-Saginaw Township North MSAs, while only minor declines were recorded in the Kalamazoo-Portage, Lansing-East Lansing and Grand Rapids-Wyoming MSAs. Total employment rose over the year in the Niles-Benton Harbor MSA.

Note: Labor force and payroll job data for all 12 months of 2007 have been recently revised. Estimates for January 2008 are not comparable to previously released data. For newly revised 2007 estimates, go to www.michigan.gov/lmi or contact 313-456-3090.

Labor Force Levels Down Over Month, Year
In January, 16 of the state's regions showed typical seasonal decreases in their respective labor force levels.

From January 2007 to January 2008, labor force levels fell in 16 regions with an average decline of 1.5 percent. The Niles-Benton Harbor MSA displayed a labor force gain over the year.

Seasonal Drop in Payroll Employment
The monthly survey of employers indicated that seasonally unadjusted payroll jobs in Michigan fell by 139,000 in January to total 4,137,000. Job cuts were recorded in all statewide industry sectors. Seasonal drops were posted in retail trade (-24,000), government (-21,000), professional and business services (-20,000), construction (-17,000), leisure and hospitality services (-14,000) and education and health services (-10,000).

Typical seasonal reductions in payroll employment were evident throughout all the metropolitan areas in Michigan. The job declines in retail trade reflected part time, holiday-related job cuts.

Manufacturing employment fell by 19,000 in January mostly due to short-term layoffs in the auto industry.

From January 2007 to January 2008, seasonally unadjusted payroll jobs fell statewide by 49,000 or 1.2 percent. Of the 12 major metropolitan areas in the state, seven reported job declines over the year while four displayed minor gains. Jobs in the Muskegon-Norton Shores MSA were essentially unchanged over the year. The majority of metropolitan areas recorded mostly moderate changes in payroll jobs since January 2007. The largest over-the-year metro job losses were recorded in the Detroit-Warren-Livonia (-30,000), Flint (-5,000), Saginaw-Saginaw Township North (-3,000) and Ann Arbor (-3,000) MSAs. Payroll jobs increased moderately over the year in the Niles-Benton Harbor, Lansing-East Lansing, Grand Rapids-Wyoming, and Kalamazoo-Portage MSAs.

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

County Jobless Rates Up Over Month, Mixed Over Year
Seventy-eight of Michigan's 83 counties recorded seasonal jobless rate hikes in January, with a median increase of 0.7 of a percentage point. In January, twenty-eight of the state's counties recorded unemployment rates of 10.0 percent or higher. Unemployment rates declined over the month in two counties and were unchanged in the remaining three.

From January 2007 to January 2008, unemployment rates were up in 44 of the state's counties, down in 31, and were unchanged in the remaining eight. Generally, jobless rate changes in the state's counties over the year were mild.

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 January workforce estimates for Michigan and its 17 major labor market areas follows, along with a listing of county jobless rates for January.

Source: Michigan Department of Labor and Economic Growth

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