January 4, 2011 – Seasonally unadjusted unemployment rates decreased in 14 of Michigan’s 17 major labor market areas in November, according to the Michigan Department of Energy, Labor & Economic Growth. Total employment levels were mixed in the various regions over the month, while labor force levels fell in most areas. “Michigan’s local labor markets in November were generally stable in the southern half of the state while seasonal patterns dominated in the northern regions,” said Rick Waclawek, director of the Bureau of Labor Market Information & Strategic Initiatives. “Unemployment rates have declined over the year throughout the state’s regions; however employment levels have been relatively flat in most areas over this period.” From October to November, the unemployment rate reductions in the 14 regions ranged from 0.3 to 1.3 percentage points, but most of the decreases hovered around a half percentage point. The largest over-the-month drop was posted in the Detroit-Warren-Livonia Metropolitan Statistical Area (MSA). Michigan’s three northernmost labor market regions recorded seasonal jobless rate increases in November.
Jobless Rates Down Over Year
From November 2009 to November 2010, all of Michigan’s major regions recorded substantial unemployment rate reductions. The over-the-year jobless rate drops averaged 2.0 percentage points. Over the year, jobless rate reductions were most pronounced in the Monroe, Muskegon-Norton Shores, and Detroit-Warren-Livonia metro areas, with declines of 3.0 percentage points or more. These three areas recorded some of the highest unemployment rates in Michigan during 2009.
Total Employment Mixed Over Month, Year
Most of Michigan’s regional labor markets recorded minimal change in total employment over the month with the exception of the three northernmost regions. Total employment rose in November in nine areas, averaging a slight gain of 0.6 percent. Seven areas reported total employment declines over the month, however the only notable drops were due to seasonal employment cuts in the Northeast Lower Michigan region (-2.9 percent), the Northwest Lower Michigan region (-2.4 percent), and the Upper Peninsula (-1.5 percent).
Since November 2009, employment advanced in eight regions and fell in eight. Over-the-year changes were marginal for the majority of areas. Total employment was essentially unchanged in the Muskegon-Norton Shores MSA over the year.
Labor Force Levels Down Over Month, Year
In November, labor force levels declined in 16 regions with a moderate median reduction of 0.6 percent. The Grand Rapids-Wyoming MSA registered a very minor labor force gain over the month. Between November 2009 and November 2010, all 17 labor market areas in the state reported reduced labor force levels. Labor force declines averaged a significant 2.0 percent.
November Payroll Jobs Decline
The monthly survey of employers indicated that seasonally unadjusted payroll jobs in Michigan decreased by 20,000 in November to 3,883,000. Job cuts were mainly seasonal and were led by a 12,000 reduction in leisure and hospitality services. Lesser drops were posted in construction (-5,000) and professional and business services (-4,000). These losses were somewhat countered by a gain in retail trade (+4,000). The job drop in leisure and hospitality services was typical for this time of year as accommodation, amusement, entertainment, food service, and recreational venues continued to wind down for the season. The increase in retail trade jobs was also seasonal, as merchants continued to hire for the holiday shopping season. From October to November, area payroll job changes were minimal. Twelve of the state’s 14 metropolitan regions recorded minor job declines, while marginal job gains were seen in the Grand Rapids-Wyoming and Battle Creek MSAs.
From November 2009 to November 2010, seasonally unadjusted payroll jobs edged down by 20,000 or 0.5 percent in Michigan. Government led the statewide decline, with 21,000 jobs lost since November 2009, mostly in local government. Private sector jobs posted a minor 1,000 gain over the year. Within the private sector, advances in manufacturing (+11,000) and health care (+7,000) were offset by job cuts in financial activities (-6,000), leisure and hospitality services (-6,000), and construction (-5,000).
Over the year, 13 of the state’s metropolitan regions recorded overall payroll job losses, with most regions showing small declines. The Grand Rapids-Wyoming MSA displayed a minor job gain since November 2009.
County Jobless Rates Mixed Over Month, Down Over Year
In November, unemployment rates fell in forty-four of Michigan’s 83 counties, with an average decline of 0.4 of a percentage point. Jobless rates rose in 34 counties over the month, with a median advance of 0.9 of a percentage point, primarily reflecting seasonal unemployment increases in the state’s northern areas. Five counties reported no monthly change in the jobless rate.
From November 2009 to November 2010, 80 counties recorded jobless rate declines, with a significant median rate drop of 2.1 percentage points. Unemployment rates increased slightly in three counties since November 2009.
