Michigan's September Jobless Rate Declines
Septermber Rate Lowest in Almost Three Years

Contact: Maura Campbell (517) 373-9280

Agency: Licensing and Regulatory Affairs

October 19, 2005 – Michigan’s seasonally adjusted unemployment rate in September declined by three-tenths of a percentage point to 6.4 percent, according to data released by the Michigan Department of Labor & Economic Growth (DLEG).  Total employment rose by 36,000 and unemployment fell by 17,000 as the state’s labor force expanded over the month.  

Michigan’s September 2005 jobless rate declined by seven-tenths of a percentage point from the September 2004 rate of 7.1 percent.  In the same period, the national jobless rate decreased by three-tenths of a percentage point.  The state’s unemployment rate was one and three-tenths percentage points above the September 2005 national rate of 5.1 percent.

“The state’s jobless rate fell by six-tenths of a percentage point in the last two months,” said Rick Waclawek, director of DLEG’s Bureau of Labor Market Information and Strategic Initiatives.  “However, we will need several more months of data to determine if this is a short-term occurrence, or a longer-term trend, especially given some of the challenges taking place in the automotive sector.”

Monthly Labor Force Trends & Highlights

• Michigan’s September unemployment rate was the lowest for the state since November 2002.
  
  
• Part of the September reduction in unemployment was the return to work of previously laid- off workers in the auto industry.
  
  
• From the second quarter to the third quarter 2005, employment in Michigan edged upward by 5,000 and unemployment declined by 14,000, as the state’s quarterly jobless rate decreased by three-tenths of a percentage point to 6.7 percent.  This was the third consecutive quarterly rate decline for the state, and the lowest quarterly rate since the fourth quarter 2002.
  
  
• Since September 2004, unemployment declined in Michigan by 33,000 or 9.1 percent, which outpaced the nationwide decrease of 4.3 percent in the same period.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

* Final estimates for August
** Preliminary estimates for September

Detroit Metropolitan Area’s September Jobless Rate Falls

The Detroit-Warren-Livonia Metropolitan Statistical Area’s (MSA’s) seasonally adjusted unemployment rate in September dropped over the month by seven-tenths of a percentage point to 6.5 percent.  This was the lowest unemployment rate for the area since October 2002’s 6.5 percent.  From August to September, total employment in the MSA rose by 17,000. Unemployment declined by 15,000 over the month as the area’s labor force was little changed.

Over the year, the Detroit MSA’s jobless rate fell by nine-tenths of a percentage point.

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

* Final estimates for August
** Preliminary estimates for September

Manufacturing Boosts September Payroll Jobs

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs increased by 8,000 in September to total 4,361,000.  Payroll job gains were led by increases in manufacturing (+8,000) and government (+4,000).  Lesser increases were recorded in education and health services (+3,000) and professional and business services (+2,000).  Somewhat offsetting these gains was an employment decline in trade, transportation and utilities (-8,000).  All other major industry categories posted relatively minor gains or declines in their respective job totals over the month.

Industry Employment Trends and Highlights

• September’s total payroll job gain was the second consecutive monthly increase, and returned the state’s payroll employment total to near the level recorded in June.
  
  
• Retail trade, the largest job sector within trade, transportation and utilities, registered an employment decline of 5,000 over the month.  This job category has trended downward since February 2005.
  
  
• Employment in the professional and business services sector increased slightly over the month to reach its highest level in 2005.
  
  
• Although government increased for the second month in a row, employment in this sector continued to show a 5,000 decline over the year.
  
  
• Since September 2004, the largest statewide payroll job declines were recorded in manufacturing and trade, transportation and utilities.  The largest gain in employment over the year was displayed in education and health services.

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.”