December 17, 2008 – Michigan's seasonally adjusted unemployment rate in November increased by three-tenths of a percentage point to 9.6 percent, according to data released today by the Michigan Department of Labor & Economic Growth (DLEG).  Total employment fell by 35,000 and unemployment rose by 16,000, as the state labor force contracted over the month.

Michigan's November 2008 jobless rate was two and two-tenths percentage points above the state's November 2007 rate of 7.4 percent.  In the same period, the national jobless rate recorded a similar advance, increasing by two percentage points.

"Michigan's labor market has rapidly deteriorated in the last several months due to the fallout of the ongoing national recession," said Rick Waclawek, director of DLEG's Bureau of Labor Market Information and Strategic Initiatives.  "Almost all industry sectors have been impacted as state payroll jobs have declined by nearly 60,000 in just the last two months."

The U.S. jobless rate in November increased by two-tenths of a percentage point to 6.7 percent.

Monthly Labor Force Trends & Highlights

• Michigan's unemployment rate in November was the highest monthly rate for the state since March 1992.
  
  
• The state's jobless rate since July has risen by over a full percentage point.
  
  
• Total employment in Michigan has fallen every month since January.
  
  
• With the reduction of the state's labor force in November, Michigan's work force has contracted over the year by 82,000 or 1.6 percent.
  
  
• Since November 2007, statewide unemployment increased by 103,000 or 27.8 percent.  National unemployment rose by a significantly larger 43.9 percent in the same period.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

Detroit Metropolitan Area's November Jobless Rate Jumps

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in November jumped by a full percentage point to 10.0 percent.  This was the highest jobless rate for the metropolitan area since December 1991. The area's total employment level fell over the month by 39,000 and unemployment rose by 18,000.  The metropolitan area's labor force declined by 21,000 over the month.

From November 2007 to November 2008, the metropolitan area's jobless rate rose by two and one-tenth percentage points.  Since November 2007, total employment fell by 70,000 and unemployment rose by 40,000.  The area's work force declined by 30,000 in this period.

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

Widespread Declines in November Payroll Jobs

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs dropped in November by 37,000 to total 4,115,000.  Over-the-month job losses were widespread throughout nearly all of the state's major industry sectors.  The largest job declines in November were posted in professional and business services (-9,000), leisure and hospitality services (-8,000), trade, transportation and utilities (-8,000), government (-4,000), and construction (-4,000).

Industry Employment Trends and Highlights

November marked the fifth consecutive month of payroll job reductions in Michigan.  In that period, the state has registered a job decline of 103,000, which is about ninety percent of the state's over-the-year job loss.  The first half of 2008 was relatively stable for Michigan jobs compared to the pace of job loss in the last several months.  Job reductions in the first half of 2008 were essentially concentrated in the auto and construction sectors.

• Retail trade jobs fell by 5,000 in November to the lowest level in 2008.  Since September, seasonally adjusted employment in retail trade has fallen by 10,000, reflecting the lack of expected hiring for the holiday season.
  
  
• In November, leisure and hospitality services experienced its largest one-month decline during 2008.  Over the year, this sector registered a 6,000 job decrease.
  
  
• Jobs in the financial activities sector have fallen since August by 4,000 or 1.8 percent.  Over the year, this sector is down by 6,000.
  
  
• Education and health services jobs were essentially flat in November.  Since November 2007, this sector was the only major industry in Michigan to record gains, with jobs up by 12,000.
  
  
• From November 2007 to November 2008, payroll jobs in Michigan fell by 113,000 or 2.7 percent.  Manufacturing (-38,000), trade, transportation and utilities (-21,000), construction (-17,000), government (-15,000) and professional and business services (-14,000) have registered the largest drops.
  
  
• Seasonally adjusted average weekly earnings of production workers in manufacturing declined over the month as well as over the year.  Hours worked were essential flat over the month, but down over the year.

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."

Read more Michigan Department of Labor & Economic Growth press releases.