States June jobless rate falls to 132 percent

July 19, 2010
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Michigan’s seasonally adjusted unemployment rate in June decreased over the month by four-tenths of a percentage point to 13.2 percent, according to data released by the Michigan Department of Energy, Labor & Economic Growth. Unemployment declined by 21,000 in June, but total employment was little changed, edging upward by 1,000. The state’s labor force fell by 20,000 over the month.

The U.S. unemployment rate in June decreased by two-tenths of a percentage point over the month to 9.5 percent.

The state’s jobless rate in June 2010 was seven-tenths of a percentage point below the June 2009 rate of 13.9 percent.  The national jobless rate was unchanged over this period.

Michigan’s labor market in 2010 has been marked by gradually declining unemployment rates and three consecutive months of modest payroll job gains.

The June jobless rate decline was primarily due to fewer Michigan workers active in the job market.

Monthly labor force trends and highlights

  • Michigan’s unemployment rate has fallen by one and three-tenths percentage points since December 2009. However, the state’s rate remains well above pre-recessionary levels.

  • The state’s labor force decline in June was the first monthly drop in 2010.

  • From the first quarter to the second quarter 2010, the state’s quarterly jobless rate declined from 14.2 percent to 13.6 percent.

  • Since June 2009, total employment in Michigan edged up slightly by 7,000 or 0.2 percent.

  • From June 2009 to June 2010, unemployment in Michigan fell by 42,000 or 6.1 percent. Nationally, the number of unemployed edged downward by 0.7 percent in the same period.

June payroll jobs stable

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs edged upward in June by 3,000, to 3,855,000. Manufacturing jobs increased by 4,000 over the month, while minor gains of around 2,000 were posted in trade, transportation and utilities, and in leisure and hospitality services. Somewhat offsetting these gains, education and health services recorded a decline of 5,000 jobs in June. The remaining major industry sectors in the state were little changed over the month.

Industry employment trends and highlights

  • June’s minor payroll job gain was the state’s third consecutive monthly increase.  Over this period, from March to June, Michigan’s payroll job count advanced by 25,000 or 0.6 percent.

  • Government jobs as a whole were essentially unchanged over the month. However, federal government employment fell by 10,000 in June due to the end of temporary employment of some 2010 Census workers. Offsetting this decline were gains in both state and local government jobs over the month.

  • Manufacturing jobs in June were 30,000 above the depressed June 2009 levels. This over-the-year increase is deceptive, as job levels in the auto sector were very low in June 2009 as the auto industry faced bankruptcy proceedings.  Employment in manufacturing has hovered around 460,000 since July 2009.

  • From June 2009 to June 2010, payroll jobs in Michigan increased by 23,000 or 0.6 percent. Although, overall, payroll jobs were up over the year, the majority of the state’s major industry sectors reported declines. Notable over-the-year decreases were registered in construction (-8,000), trade, transportation and utilities (-8,000), financial activities (-8,000), leisure and hospitality services (-7,000), and information (-5,000). These losses were more than offset by job gains in manufacturing (+30,000), professional and business services (+24,000), and education and health services (+9,000).

  • Seasonally adjusted average weekly hours and earnings of production workers in manufacturing declined over the month, but rose over the year.

Rick Waclawek is director of DELEG’s Bureau of Labor Market Information and Strategic Initiatives.

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