Unemployment rate 8.6% in Upper Peninsula

From the Department of Technology, Management & Budget:

Lansing – Seasonally unadjusted unemployment rates dropped in all of Michigan’s 17 major labor market areas in August, according to the Michigan Department of Technology, Management & Budget.  Total employment and labor force levels declined seasonally in the majority of regions over the month.

“August jobless rates declined in all regions due to seasonal workforce reductions as fewer individuals actively sought employment.  Summer hiring decreased typically in many regions from the July peak,” said Michael Williams, acting director of the Bureau of Labor Market Information & Strategic Initiatives.  “However, payroll jobs increased in manufacturing and professional and business services over the month due to recalls of workers from short-term retooling layoffs in the auto industry.”

From July to August, regional jobless rate declines ranged from 0.6 to 1.7 percentage points, with a significant median reduction of 1.2 percentage points.  Fifteen of the 17 areas reported unemployment rate declines over a full percentage point.  The largest rate decreases were recorded in the Monroe and Flint Metropolitan Statistical Areas (MSAs), with drops of 1.7 and 1.5 percentage points respectively.  Jobless rates fell in both the Lansing-East Lansing and the Saginaw-Saginaw Township North MSAs by 1.4 percentage points.  In August, all of Michigan’s major labor markets areas displayed unemployment rates of 10.0 percent or below.

Jobless Rates Mixed Over Year

From August 2012 to August 2013, the majority of regional unemployment rate changes were moderate, with rate variations of only plus or minus 0.4 of a percentage point in 16 of the 17 areas.  Since August 2012, jobless rates increased slightly in eight regions with a median advance of only 0.2 of a percentage point.  Six areas posted mostly minor unemployment rate declines over the year, with the Detroit-Warren-Livonia MSA as the only notable exception, with a rate reduction of 1.2 percentage points.  The jobless rates in the Battle Creek and Monroe MSAs along with the Northwest Lower Michigan region were unchanged over the year.

Total Employment Down Over Month, Up Over Year

Over the month, total employment declined seasonally in 14 of 17 regions with a moderate median reduction of 0.5 percent.  By far the largest over-the-month drop (-1.9 percent) was posted in the Northwest Lower Michigan region, which was due to seasonal declines in tourism-related employment.  Total employment rose over the month in the Detroit-Warren-Livonia, Monroe, and Saginaw-Saginaw-Township North MSAs.

Since August 2012, total employment advanced in 13 regions, with increases averaging 1.5 percent.  The most pronounced over-the-year gains were recorded in the Grand Rapids-Wyoming, Detroit-Warren-Livonia, Muskegon-Norton Shores, and Holland-Grand Haven MSAs.  Total employment was down slightly since August 2012 in three regions; the Niles-Benton Harbor, Monroe, and Saginaw-Saginaw Township North MSAs.  Total employment was essentially unchanged over the year in the Bay City MSA.  

Labor Force Levels Down Over Month, Up Over Year

From July to August, workforce levels declined seasonally in 16 regions and increased slightly in the Detroit-Warren-Livonia MSA.  From August 2012 to August 2013, labor force levels advanced in 14 regions, posting an average increase of 1.3 percent.  Workforce levels fell slightly over the year in the Niles-Benton Harbor and Monroe MSAs, and were essentially unchanged in the Saginaw-Saginaw Township North MSA.

Manufacturing and Professional and Business Services Push August Payroll Jobs Upward

The monthly survey of employers indicated that seasonally unadjusted payroll jobs in Michigan increased by 19,000 or 0.5 percent in August to 4,086,000.  August job gains were recorded in manufacturing (+10,000) and professional and business services (+9,000).  Mostly minor offsetting gains and losses were reported in the remaining industry sectors over the month.

The job advance in manufacturing primarily reflected recalls from the July vacation shutdown/retooling period within the auto industry.  Due to revamped production schedules over the last several years, July auto supplier retooling layoffs and subsequent August recalls have been subdued.  The majority of the August advance in professional and business services occurred in the temporary help sub-sector (+7,000).

In August, payroll jobs increased in 11 of the 14 metropolitan areas in the state.  Job gains ranged from 0.1 to 1.0 percent with a moderate average hike of 0.5 percent.  Jobs edged down over the month in the Jackson and Holland-Grand Haven MSAs, and were essentially unchanged in the Bay City MSA.

From August 2012 to August 2013, seasonally unadjusted payroll jobs increased statewide by 66,000 or 1.6 percent.  The bulk of the over-the-year job gains were recorded in five industry sectors; manufacturing (+17,000), professional and business services (+16,000), leisure and hospitality services (+15,000), trade, transportation and utilities (+14,000), and education and health services (+5,000).  Michigan’s remaining industry sectors recorded minor offsetting gains and losses.

Since August 2012, overall payroll jobs rose in 11 metropolitan regions and declined in three.  Gains averaged 1.4 percent over the year, while area job declines were mainly minor.  The largest over-the-year percentage job advances were registered in the Grand Rapids-Wyoming, Muskegon-Norton Shores, and Ann Arbor MSAs.

County Jobless Rates Down Over Month, Up Slightly Over Year

Eighty-two of Michigan’s 83 counties recorded seasonal unemployment rate reductions in August.  Jobless rate declines were significant, with a median drop of 1.3 percentage points.  The unemployment rate in Livingston County was unchanged over the month.

From August 2012 to August 2013, jobless rates rose in 48 counties, declined in 31 and were unchanged in four.  Over-the-year increases and decreases were marginal, with median hikes or reductions of only 0.3 of a percentage point.