June 17, 2009 – Michigan's seasonally adjusted unemployment rate in May jumped upward by one and two-tenths percentage points to 14.1 percent, according to data released today by the Michigan Department of Energy, Labor & Economic Growth (DELEG).  Total employment fell by 54,000 over the month while unemployment rose by 55,000, leaving the state's labor force essentially flat from April to May.

The U.S. unemployment rate rose by half a percentage point in May to 9.4 percent.

Michigan's May 2009 jobless rate was five and nine-tenths percentage points above the state's May 2008 rate of 8.2 percent.  In the same period, the national jobless rate also registered a significant advance, rising by three and nine-tenths percentage points.

"Major events continued to unfold in Michigan's auto industry in May, which had a considerable impact on the state's unemployment rate," said Rick Waclawek, director of DELEG's Bureau of Labor Market Information and Strategic Initiatives.  "Curtailed production negatively influenced suppliers and other related sectors, resulting in further weakening in the labor market.

Monthly Labor Force Trends & Highlights

• Michigan's unemployment rate in May was the highest monthly rate recorded in the state since July 1983.
  
  
• May's jobless rate increase was the largest monthly advance since January's jump of one and four tenths percentage points.
  
  
• Even with substantial job loss, Michigan's labor force level has remained relatively steady so far in 2009.  The May level of 4,849,000 was only 3,000 less than the state's five-month 2009 average.
  
  
• Since May 2008, unemployment in Michigan increased by 274,000 or 67.2 percent.  Unemployment nationally rose by a slightly larger 70.0 percent in the same period.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

Detroit Metropolitan Area's May Jobless Rate Increases

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in May rose by a full percentage point to 15.4 percent.  Total employment in the area fell by 23,000 over the month and unemployment increased by 20,000.  This advance in unemployment in May was similar to the average monthly increase of 23,000 recorded in the metropolitan area so far in 2009.  The Detroit-Warren-Livonia MSA has consistently reported the highest jobless rate in the country among the major metropolitan areas in 2009.

From May 2008 to May 2009, the metropolitan area's jobless rate jumped by six and seven-tenths percentage points.  Since May 2008, total employment fell by 152,000 and unemployment rose by 138,000.  The area's work force declined by 13,000 over the year.

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

Manufacturing Losses Push May Payroll Jobs Downward

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs fell in May by 24,000 to total 3,878,000.  The largest share of over-the-month job loss occurred in manufacturing (-16,000).  Lesser declines were recorded in construction (-4,000), trade, transportation and utilities (-4,000) and in education and health services (-3,000).  Somewhat offsetting these decreases were minor gains in leisure and hospitality services (+3,000) and government (+3,000).  The remaining major sectors registered only small changes in May.

Industry Employment Trends and Highlights

• May 2009 marked the 11^th consecutive monthly payroll job loss in Michigan.  Over that period, monthly job losses averaged 28,000.
  
  
• The leisure and hospitality sector posted its first monthly gain since October 2008.
  
  
• The state's information sector had been stable throughout a good portion of 2008.  However since October, information has lost over 5,000 jobs.  This job category includes the publishing and telecommunications industries among others.
  
  
• After stabilizing from January through March, manufacturing has lost 37,000 jobs over the last two months.
  
  
• Education and health services reported its third consecutive monthly job decline in May.  Over the year, this sector remains the only major industry category in the state to show growth (+2,000), albeit minor.
  
  
• From May 2008 to May 2009, payroll jobs in Michigan fell by 303,000 or 7.2 percent.  The state's goods producing industries lost 147,000 jobs, and recorded a 20.0 percent drop.  Michigan's service providing industries dropped by 153,000, or a 4.4 percent decline.
  
  
• Seasonally adjusted average weekly hours and earnings of production workers in manufacturing fell substantially 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."