Michigan's October Jobless Rate Increases

Ann Arbor, MI  (CompNewsNetwork) - Michigan's seasonally adjusted unemployment rate in October increased by two-tenths of a percentage point to 7.7 percent, according to data released by the Michigan Department of Labor & Economic Growth (DLEG).

Employment fell by 43,000 and unemployment advanced by 9,000 as the state's labor force declined by 34,000 over the month.

Michigan's October 2007 jobless rate rose six-tenths of a percentage point above the state's October 2006 rate of 7.1 percent. The national rate increased by three-tenths of a percentage point in the same period.

"The October unemployment rate increase reflects short-term layoffs in the auto industry," said Rick Waclawek, director of DLEG's Bureau of Labor Market Information and Strategic Initiatives. "October layoffs in the auto sector were associated with reduced production schedules."

Monthly Labor Force Trends & Highlights

* Michigan's unemployment rate has trended upward since the spring of 2007.

* Michigan's work force in October recorded its second lowest monthly level of 2007.

Labor force reductions during 2007 were partially related to restructuring and workforce buyouts in the auto industry.

* Since October 2006, statewide unemployment increased by 26,000 or 7.2 percent, similar to the 7.9 percent increase nationally in the same period.

* The national jobless rate in October was unchanged over the month at 4.7 percent.

Detroit Metropolitan Area's October Jobless Rate Edges Upward

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in October increased slightly by one-tenth of a percentage point to 8.0 percent. Total employment as well as the area's labor force declined by 21,000 over the month as unemployment was essentially unchanged. The metro area's jobless rate has been little changed for the last three months.

From October 2006 to October 2007, the metropolitan area's jobless rate rose by seven-tenths of a percentage point. Over the year, total employment fell in the area by 40,000 as unemployment increased by 12,000. The region's labor force receded by 28,000 in that period.

October Payroll Jobs Drop

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs fell in October by 22,000 to total 4,245,000. Most of the major industry categories recorded job declines over the month, however, manufacturing (-8,000) and leisure and hospitality services (-5,000) registered significant reductions. Government, construction, other services, and trade, transportation and utilities experienced lesser declines of around 2,000 each. The remainder of the major industry sectors showed mostly minor decreases in October.

Industry Employment Trends and Highlights

* October marked the largest over-the-month payroll job loss for the state so far in 2007.

* Manufacturing jobs fell for the fourth consecutive month in October to the lowest level recorded for this sector thus far in 2007.

* After losing jobs for the first five months of this year, employment in professional and business services has been steady since May.

* Retail trade continued its downward trend in 2007, with minor job decreases in eight of the first ten months of the year.

* From October 2006 to October 2007, payroll jobs in Michigan fell by 75,000 or 1.7 percent. In that period, the industry sectors showing the most significant job loss included manufacturing (-26,000), government (-17,000), construction (-16,000), and trade, transportation and utilities (-13,000).

* Since October 2006, education and health services (+8,000) was the only major industry sector in Michigan to register significant job growth.

* Seasonally adjusted average weekly hours and earnings of production workers in manufacturing were up over the month as well as over the year.