November 16, 2005 – Michigan’s seasonally adjusted unemployment rate in October fell by four-tenths of a percentage point to 6.1 percent (September’s rate was revised upward by one-tenth of a percentage point from 6.4 to 6.5 percent), according to data released by the Michigan Department of Labor & Economic Growth (DLEG). 

Michigan’s October 2005 jobless rate dropped by over a full percentage point from the October 2004 rate of 7.2 percent.  In the same period, the national jobless rate decreased by a half percentage point.  The state’s unemployment rate was a little over a percentage point above the October 2005 national rate of 5.0 percent.

“The state’s unemployment rate has declined over the past year,” said Rick Waclawek, director of DLEG’s Bureau of Labor Market Information and Strategic Initiatives.  “October marked the third consecutive monthly jobless rate reduction in Michigan.  The last time the state’s jobless rate fell for three consecutive months was from December 1999 to February 2000.”

It is important to note that a reduction in the number of persons active in the state labor force contributed to the lower October jobless rate.  Unemployment declined by 24,000 while total employment was little changed, edging down by 2,000.  As a result, the state’s labor force trended downward over the month by 26,000.  The state labor force has been flat over the past year, particularly among youth.

Monthly Labor Force Trends & Highlights

• Michigan’s October unemployment rate was the lowest for the state since September 2002.
  
  
• Since October 2004, unemployment fell in Michigan by 55,000 or 15 percent, which outpaced the nationwide decrease of eight percent in the same period.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

* Final estimates for September
** Preliminary estimates for October

Detroit Metropolitan Area’s October Jobless Rate Falls

The Detroit-Warren-Livonia Metropolitan Statistical Area’s (MSA’s) seasonally adjusted unemployment rate in October dropped over the month by half of a percentage point to 6.1 percent (September’s rate was revised upward from 6.5 to 6.6 percent).  This was the lowest unemployment rate for the area since March 2002’s 6.1 percent.  From September to October, the area’s labor force, employment and unemployment levels decreased.  Since January 2005, the region’s unemployment level declined by 18,000 or 12 percent.

Over the year, the Detroit MSA’s jobless rate fell by one and three-tenths percentage points.

Detroit MSA
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

* Final estimates for September
** Preliminary estimates for October

October Payroll Jobs Edge Downward

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs declined by 14,000 in October to total 4,348,000.  The most significant over-the-month job losses occurred in government (-8,000).  Lesser declines were recorded in education and health services (-3,000) and trade, transportation and utilities (-3,000).  All other major industry categories posted relatively minor gains or declines in their respective job totals over the month.

Industry Employment Trends and Highlights

• October’s total payroll job decline was the first monthly decrease since July.
  
  
• Manufacturing employment declined somewhat over the month, reflecting minor, temporary layoffs in the auto sector.
  
  
• Employment in the professional and business services sector increased slightly over the month, which continued this job category’s upward trend throughout 2005.
  
  
• Even with an employment decline over the month, education and health services continues to be the state’s primary growth sector over the past year.  Other sectors that displayed notable gains since October 2004 include financial activities and the “other services” category.
  
  
• Since October 2004, most of the statewide payroll job declines were recorded in three sectors: manufacturing, government, and trade, transportation and utilities.  Within trade, transportation and utilities, the retail trade sector recorded the vast majority of job losses.

The Department of Labor & Economic Growth (DLEG) is investing in Michigan's future by helping to create the jobs of today and tomorrow, ensuring that our children and adults have the skills these jobs demand, making Michigan a better place to do business, and training and placing those who need jobs now. 

Note to Editors:  Please ensure that the source for state unemployment rates reads “Michigan Department of Labor & Economic Growth.”