Michigan's April Jobless Rate Declines; Continued Layoffs Due to Labor Dispute Reduce Manufacturing Jobs

May 14, 2008 – Michigan's seasonally adjusted unemployment rate in April declined three-tenths of a percentage point to 6.9 percent, according to data released today by the Michigan Department of Labor & Economic Growth (DLEG). The state's labor force fell by 15,000 over the month due to reductions in both total employment and unemployment levels.

An abandoned factory in downtown Detroit: Photo by Derek Farr (CC)

Michigan's April 2008 jobless rate edged downward by two-tenths of a percentage point from the state's April 2007 rate of 7.1 percent. In the same period, the national jobless rate rose by half of a percentage point.

"Manufacturing jobs in the state continued to drop in April primarily due to the impact of the ongoing labor dispute in the auto sector," said Rick Waclawek, director of DLEG's Bureau of Labor Market Information and Strategic Initiatives. "A relatively large reduction in construction employment in April added to the overall monthly drop in Michigan payroll jobs."

Monthly Labor Force Trends & Highlights

* The state's total employment level in April declined for the third consecutive month.

* Since April 2007, statewide unemployment declined by 11,000 or 3.1 percent. National unemployment increased by 11.7 percent in the same period.

* From April 2007 to April 2008, Michigan's labor force recorded a reduction of 50,000 or 1.0 percent.

* The national jobless rate in April declined slightly by one-tenth of a percentage point to 5.0 percent.

Detroit Metropolitan Area's April Jobless Rate Declines

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in April decreased three-tenths of a percentage point to 7.4 percent. Both total employment and unemployment declined in April, pushing the area's labor force down over the month by 11,000.

From April 2007 to April 2008, the metropolitan area's jobless rate edged downward by one-tenth of a percentage point. Since April 2007, total employment dropped by 30,000 while unemployment declined slightly by 5,000. As a result, the region's labor force level was reduced by 34,000 in that period.

Continued Layoffs in Auto Related Manufacturing Reduce Payroll Jobs

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs fell in April by 19,000 to total 4,197,000. Manufacturing jobs (-11,000) continued to decline in April, primarily due to strike related layoffs in the auto industry. Construction jobs (-7,000) also fell over the month, while lesser declines in trade, transportation and utilities (-3,000) and leisure and hospitality services (-2,000) were recorded in April. Slightly offsetting these reductions were minor gains in professional and business services (+3,000) and government (+3,000). The remainder of the major industry sectors recorded little change over the month.

Industry Employment Trends and Highlights

* Since February, manufacturing jobs have dropped by 25,000 or 4.2 percent. These were mainly temporary layoffs in the auto industry due to the secondary effects of an ongoing labor dispute.

* The 7,000 decrease in construction jobs in April was the largest over-the-month decline since this sector began shedding jobs in early 2007.

* With a 3,000 gain in April, jobs in professional and business services have increased for six consecutive months since October 2007.

* After stabilizing from October 2007 through February 2008, the financial activities sector renewed its downward trend in March and April.

* From April 2007 to April 2008, payroll jobs in Michigan fell by 72,000 or 1.7 percent. The most significant job losses in that period were confined to three of the state's 11 major industry sectors: manufacturing (-53,000), construction (-13,000), and government (-8,000).

* Since April 2007, education and health services (+9,000), and professional and business services (+4,000) were the only major industry sectors in Michigan to register job growth.

* Seasonally adjusted average weekly hours and earnings of production workers in manufacturing declined over the month, but showed an increase over the year.

Source: Michigan Department of Labor & Economic Growth

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