Michigan Unemployment Rises In Most Of Michigan's Regional Labor Markets

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2007 Annual Jobless Rates Up Slightly in Most Areas

January 25, 2008 - Seasonally unadjusted unemployment rates increased over the month in 13 of Michigan's 17 major labor market areas, according to the Michigan Department of Labor and Economic Growth. In December, total employment and labor force levels declined seasonally in most regions.

"Michigan's local labor markets displayed typical seasonal changes in December," said Rick Waclawek, director of the Bureau of Labor Market Information & Strategic Initiatives. "During 2007, preliminary annual averages show that most Michigan regions recorded labor force and employment reductions and slight jobless rate increases."

From November to December, jobless rate increases in the 13 regions averaged only 0.3 of a percentage point, with relatively large increases in four areas and minor advances in the remaining regions. Unemployment rate hikes in the state's three northernmost regions ranged from 0.6 to 1.3 percentage points, while the rate in the Detroit-Warren-Livonia Metropolitan Statistical Area (MSA) rose by 0.8 of a percentage point over the month. Rate gains in the remaining regions were limited to 0.4 of a percentage point or less. Unemployment rates were unchanged over the month in the Ann Arbor, Flint, and Monroe MSAs, while the rate in the Muskegon-Norton Shores MSA edged downward by 0.1 of a percentage point.

Annual Average Jobless Rates Edged Upward Over the Year in the Majority of Areas
Preliminary annual average data indicated that jobless rates moved upward in 14 of the state's 17 major labor market areas from 2006 to 2007. The rate increases were moderate in most of the 14 regions, with an average advance of 0.3 of a percentage point. The largest hikes in this period of 0.6 of a percentage point were reported in the Jackson MSA along with the Northeast Lower Michigan Region.

Annual unemployment rates edged downward in both the Saginaw-Saginaw Township North and Niles-Benton Harbor MSAs, and were unchanged from 2006 to 2007 in the Lansing-East Lansing MSA.

Total Employment Down Over Month, Year
From November to December, seasonally moderate total employment declines were registered in 15 areas, while two regions recorded slight gains.

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

Labor Force Levels Down Over Month, Year
Generally In December, labor force levels showed only small monthly changes with 11 areas recording declines, four regions registering increases and the remaining two essentially unchanged.

From December 2006 to December 2007, labor force levels fell in 16 regions with an average decline of 1.5 percent. The Niles-Benton Harbor MSA displayed a slight labor force gain over the year.

December Payroll Jobs Down Slightly
The monthly survey of employers indicated that seasonally unadjusted payroll jobs in Michigan declined by 11,000 in December to total 4,293,000. Seasonal job losses occurred mainly in construction (-9,000) and government (-6,000), with lesser declines posted in professional and business services (-4,000). Construction jobs fell seasonally in all of the state's major metropolitan areas in December.

Somewhat offsetting these reductions was a 5,000 statewide gain in retail trade jobs. The advance in retail trade employment was evident in all of Michigan's metropolitan areas as merchants hired additional staff for the holiday season.

From December 2006 to December 2007, seasonally unadjusted payroll jobs fell statewide by 79,000 or 1.8 percent. Of the 14 major metropolitan areas in the state, 11 reported job declines over the year while three displayed gains. The majority of metropolitan areas recorded mostly moderate changes in payroll jobs since December 2006. The largest over-the-year metro job losses were recorded in Detroit-Warren-Livonia (-37,000), Flint (-5,000), Saginaw-Saginaw Township North (-3,000) and Ann Arbor (-2,000). Payroll jobs increased moderately over the year in the Grand Rapids-Wyoming, Kalamazoo-Portage, and Niles-Benton Harbor MSAs.

Over the year, manufacturing, construction, retail trade and government 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
Seventy of Michigan's 83 counties recorded seasonal jobless rate increases in December, with a median increase of 0.7 of a percentage point. The largest rate advances generally took place in the state's northern areas. Unemployment rates declined over the month in seven counties and were unchanged in the remaining six.

From December 2006 to December 2007, unemployment rates were up in 71 of the state's counties with a relatively minor median advance of 0.4 of a percentage point. There were only a handful of significant county jobless rate increases over the year, with the largest (+2.9 percentage points) registered in Luce County due to short-term layoffs. Unemployment rates declined over the year in 11 counties, and were unchanged in one.

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

Source: Michigan Department of Labor and Economic Growth