August 21, 2008 – Seasonally unadjusted unemployment rates increased over the month in 16 of Michigan's 17 major labor market areas, according to the Michigan Department of Labor & Economic Growth.  In July, employment and labor force levels declined in the majority of areas.

"Typically in July, manufacturing jobs fall due to the auto industry's vacation shutdown and retooling period.  Along with this, local government education employment drops due to the summer break.  For the most part, July 2008 followed this pattern," said Rick Waclawek, director of the Bureau of Labor Market Information & Strategic Initiatives.  "However in 2008, there were lower job counts in most regions of the state as compared to last year."

From June to July, jobless rate increases in the 16 regions averaged nearly a full percentage point and ranged from a slight 0.1 of a percentage point increase in the Upper Peninsula to substantial jumps of 2.6 and 2.5 percentage points in the Flint and Monroe Metropolitan Statistical Areas (MSAs) respectively.  The jobless rate in the Detroit-Warren-Livonia MSA edged downward over the month by 0.3 of a percentage point.

Jobless Rates Rise Significantly Over Year
From July 2007 to July 2008, unemployment rates rose in all 17 major labor market areas, with a median advance of almost one and a half percentage points.  Fifteen of the regions posted increases of a full percentage point or above.

Total Employment Down Over Month, Year
From June to July, total employment decreased seasonally in 14 areas, with an average decline of 1.3 percent.  Three areas registered total employment gains over the month, with the largest increase reported in the Northwest Lower Michigan Region, as hiring continued in the area for the summer tourism season.

Since July 2007, total employment fell in all 17 regions.  Over-the-year declines were wide ranging, but averaged nearly 2.5 percent. 

Labor Force Levels Down Over Month, Year
In July, labor force levels declined in 12 regions, with minor to moderate decreases averaging 0.7 percent.  Over the month, work force levels increased in the Muskegon-Norton Shores MSA along with the three northernmost labor market regions.  The Battle Creek MSA labor force was essentially unchanged over the month.

From July 2007 to July 2008, labor force levels fell in 15 areas.  The average over-the-year decline was 1.0 percent; however some areas posted drops of well over 2.0 percent.  Since July 2007, the Niles-Benton Harbor MSA recorded a labor force increase, while the Muskegon-Norton Shores MSA's work force was little changed.

Seasonal Cutbacks in Payroll Jobs
The monthly survey of employers indicated that seasonally unadjusted payroll jobs in Michigan fell by 119,000 in July to total 4,151,000.  All major metropolitan areas in the state recorded large seasonal payroll employment drops averaging nearly 3.0 percent.

In July, private sector jobs declined statewide by 58,000 or 1.6 percent.  Job cuts in manufacturing totaled 23,000 over the month, mainly the result of temporary layoffs in the auto industry among suppliers due to model-changeover activity.  These cuts were reported in every metropolitan area within the state.  Short-term job losses in the auto industry during the retooling period have been less severe the last several years as compared to historical norms.

Other notable private sector job reductions in July were registered in professional and business services (-14,000), trade, transportation and utilities (-9,000), and leisure and hospitality services (-5,000).  The declines in professional and business services and in trade, transportation and utilities were seasonal and expected as they are partially related to the auto retooling period.

Government jobs fell by 61,000 or 9.6 percent in July, primarily the result of cutbacks in local education due to summer break at area schools.

From July 2007 to July 2008, seasonally unadjusted payroll jobs fell statewide by 53,000 or 1.3 percent.  Of the 12 major metropolitan areas in the state, ten reported job declines over the year.  The most significant over-the-year metro job losses were recorded in the Detroit-Warren-Livonia (-37,000), Flint (-9,000), Lansing-East Lansing (-3,000), and Saginaw-Saginaw Township North (-3,000) MSAs.  Payroll jobs rose slightly over the year in the Niles-Benton Harbor MSA, while the job count was essentially unchanged in the Muskegon-Norton Shores MSA.

Over the year, manufacturing and construction jobs were down in all metropolitan areas, while jobs in health services were up in nearly all regions.

County Jobless Rates Up Over Month, Year
Sixty-eight of Michigan's 83 counties posted jobless rate increases in July, with an average over-the-month advance of 0.8 of a percentage point.  Ten counties recorded mostly minor rate declines in July, while the rates in five counties were unchanged.  In July, only two Michigan counties displayed unemployment rates that were below the non-seasonally adjusted national rate of 6.0 percent.

From July 2007 to July 2008, unemployment rates were up in 79 counties with a significant average increase of over a full percentage point.

Note:  Data in this release is not seasonally adjusted.  As a result, employment and unemployment trends may differ from previously released Michigan seasonally adjusted data.

A breakdown of seasonally unadjusted July workforce estimates for Michigan and its 17 major labor market areas follows, along with a listing of county jobless rates for July.

Note to Editors:  Please ensure that the source for state unemployment rates reads "Michigan Department of Labor & Economic Growth."

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.