July 16, 2008 – Michigan's seasonally adjusted unemployment rate in June held steady at 8.5 percent, according to data released today by the Michigan Department of Labor & Economic Growth (DLEG).  Both total employment (-11,000) and unemployment (-5,000) declined over the month.  The net result was a reduction in the state's labor force of 15,000.

Michigan's June 2008 jobless rate increased by one and four-tenths percentage points from the state's June 2007 rate of 7.1 percent.  In the same period, the national jobless rate rose by nine-tenths of a percentage point.

"Workers who were on temporary layoff for the last several months due to labor disputes in the auto industry were recalled in June," said Rick Waclawek, director of DLEG's Bureau of Labor Market Information and Strategic Initiatives.  "However, the jobless rate remained flat due to a somewhat sluggish summer hiring period, especially for those newly entering the labor market."

Despite the auto sector recalls in June, jobs in the manufacturing sector have continued to fall in Michigan, declining by 29,000 since June 2007.

Monthly Labor Force Trends & Highlights

• Total employment declined in Michigan for the fifth consecutive month.
  
  
• From the first quarter to the second quarter 2008, Michigan's quarterly jobless rate jumped nine-tenths of a percentage point to 8.0 percent.  In that period, total employment fell by 49,000 while unemployment rose by 42,000.
  
  
• Since June 2007, statewide unemployment rose by 66,000 or 18.5 percent.  National unemployment increased by 21.5 percent in the same period.
  
  
• The national jobless rate in June was unchanged at 5.5 percent.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

No Change in Detroit Metropolitan Area's June Jobless Rate

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in June was unchanged at 9.3 percent.  Total employment and unemployment were little changed over the month.

From June 2007 to June 2008, the metropolitan area's jobless rate rose by one and a half percentage points.  Since June 2007, total employment dropped by 39,000 or 2.0 percent while unemployment increased by 32,000 or 19.2 percent.  The percentage advance in the area's unemployment level was similar to the unemployment increase in both the state and the nation in the same period.

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

Manufacturing Leads Payroll Job Gains

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs rose in June by 17,000 to total 4,222,000.  The overall increase was led by an over-the-month gain in manufacturing jobs of 15,000.  Two other major industry sectors recorded significant change in June, as a job increase in government (+7,000) was nearly offset by a decline in professional and business services (-6,000). The remainder of the major industry sectors recorded mostly minor changes over the month.

Industry Employment Trends and Highlights

• Manufacturing jobs rebounded in June due to recalls from short-term layoffs in the auto industry.  The layoffs occurred due to the secondary impact of two major strikes, both of which were resolved in May.
  
  
• With a minor decline in June, construction employment has decreased every month since January, and ten out of the last 12 months.
  
  
• From June 2007 to June 2008, payroll jobs in Michigan fell by 49,000 or 1.1 percent.  The most significant job losses in that period were concentrated to two of the state's 11 major industry sectors: manufacturing (-29,000) and construction (-15,000).
  
  
• Since June 2007, education and health services (+9,000) was the only major industry sector in Michigan to register significant job growth.  In that period, professional and business services along with leisure and hospitality services displayed minor gains.
  
  
• Seasonally adjusted average weekly hours and earnings of production workers in manufacturing increased over the month, but declined 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.