September 16, 2009 – Michigan's seasonally adjusted unemployment rate in August edged upward by two-tenths of a percentage point to 15.2 percent, according to data released today by the Michigan Department of Energy, Labor & Economic Growth (DELEG).  Total employment fell by 28,000 and unemployment rose slightly by 6,000.  In August there was a 22,000 reduction in the state's labor force.

The U.S. unemployment rate in August increased by three-tenths of a percentage point to reach 9.7 percent.

Michigan's August 2009 jobless rate was six and six-tenths percentage points above the state's August 2008 rate of 8.6 percent.  In the same period, the national jobless rate rose by three and a half percentage points.

"After showing large monthly jumps in the first half of 2009, Michigan's unemployment rate remained steady during the summer months," said Rick Waclawek, director of DELEG's Bureau of Labor Market Information and Strategic Initiatives.  "However, payroll jobs in 2009 continue to decline, led by job cuts in the manufacturing sector."

Monthly Labor Force Trends & Highlights

• The state's jobless rate has essentially been flat since June.  In the first half of the year, monthly unemployment rate increases averaged seven-tenths of a percentage point.
  
  
• The 22,000 drop in the state's labor force in August was the largest monthly decline since January.  From January to July, Michigan workforce levels were relatively stable.
  
  
• Total employment in Michigan has fallen for 27 consecutive months since May 2007.
  
  
• Since August 2008, the number of Michigan unemployed residents increased by 74.0 percent while total employment dropped by 8.9 percent.  Nationally, the number of unemployed rose by 56.3 percent and employment fell by 3.9 percent during this period.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

Detroit Metropolitan Area's July Jobless Rate Edges Upward

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in August rose by nine-tenths of a percentage point to 17.3 percent.  This was the highest recorded seasonally adjusted jobless rate in the metropolitan area's current official series, which dates back to 1983.  Unemployment in the area rose over the month by 22,000 while total employment declined by 11,000.

From August 2008 to August 2009, the metropolitan area's jobless rate nearly doubled, advancing by eight and five-tenths percentage points.  Since August 2008, total employment fell in the metropolitan area by 187,000 or 9.8 percent and unemployment rose by 177,000 or 96.0 percent.  Both the area's employment decline and unemployment increase outpaced the statewide percentage changes in the same categories.

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

August Payroll Jobs Continue Downward Trend

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs fell in August by 43,000 to total 3,821,000.  July and August payroll job changes were difficult to evaluate due to unusual 2009 seasonal patterns in manufacturing jobs.  The best comparison of recent payroll job trends is from June to August 2009, when payroll jobs in Michigan fell by 20,000.

In August, job reductions were widespread throughout the majority of the state's industry sectors, but were led by a large drop in manufacturing (-25,000).  Lesser declines were registered in trade, transportation and utilities (-7,000), professional and business services (-5,000), and leisure and hospitality services (-3,000).  The remaining major industry sectors recorded only minor changes over the month.

Industry Employment Trends and Highlights

• Monthly job losses in Michigan so far in 2009 have averaged 27,000, which is triple the 9,000 average monthly job cuts recorded in 2008.
  
  
• Manufacturing jobs in Michigan fell by 43,000 from April 2009 to August 2009, as restructuring in the auto sector continues.
  
  
• The 5,000 over-the-month drop in professional and business services was typical for this sector this year.  The 2009 average monthly decline in this job category has been 6,000.
  
  
• In May 2009, the number of retail trade jobs essentially matched the number of manufacturing jobs in Michigan, a first time occurrence.  By August, there were 22,000 more retail trade jobs than manufacturing jobs in the state.  Both sectors have lost a significant number of jobs over the year, but manufacturing has declined at a much greater pace.
  
  
• From August 2008 to August 2009, payroll jobs in Michigan fell by 330,000 or 7.9 percent.  In that period, the majority of the state's major industry sectors showed substantial job loss.  However, education and health services along with government have recorded moderate gains.
  
  
• Seasonally adjusted average weekly hours and earnings of production workers in manufacturing declined over the month as well as over the year.

The Department of Energy, Labor & Economic Growth (DELEG) 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 Energy, Labor & Economic Growth."