April 16, 2007 - Michigan's seasonally adjusted unemployment rate in March was unchanged from the February rate of 7.2 percent, according to data released today by the Michigan Department of Labor & Economic Growth (DLEG).  Total employment declined by 9,000 and unemployment increased slightly by 2,000 as the state's labor force was reduced by 7,000.

Michigan's March 2008 jobless rate edged upward by two-tenths of a percentage point from the state's March 2007 rate of 7.0 percent.  The national rate jumped by seven-tenths of a percentage point in the same period.

"Michigan manufacturing jobs fell in March, reflecting the initial layoff activity caused by a major strike in the auto sector," said Rick Waclawek, director of DLEG's Bureau of Labor Market Information and Strategic Initiatives.  "The impact of strike-related layoffs was concentrated in the Detroit metro area, where the jobless rate edged up to 7.7 percent."

Monthly Labor Force Trends & Highlights

• Since last summer, a period of time that has seen a fairly dramatic hike in the national unemployment rate, Michigan's rate has changed little.  The only exception was a minor increase in the state's jobless rate in the fourth quarter 2007.
  
  
• From the fourth quarter 2007 to the first quarter 2008, Michigan's jobless rate declined by three-tenths of a percentage point from 7.4 to 7.1 percent.
  
  
• The state's labor force continued its downward trend in early 2008.  Michigan's March labor force level of 4,995,000 was 41,000 below the year-ago level.
  
  
• Since March 2007, statewide unemployment rose by 10,000 or 2.9 percent, which is well below the national increase of 16.0 percent in the same period.
  
  
• The national jobless rate in March rose by three-tenths of a percentage point to 5.1 percent.

MICHIGAN
Labor Force Estimates
Seasonally Adjusted
(Data in Thousands)

Detroit Metropolitan Area's March Jobless Rate Increases

The Detroit-Warren-Livonia Metropolitan Statistical Area's (MSA's) seasonally adjusted unemployment rate in March rose by three-tenths of a percentage point to 7.7 percent.  Total employment fell by 17,000 and unemployment increased by 6,000 as the area's labor force recorded an over-the-month reduction of 11,000.

From March 2007 to March 2008, the metropolitan area's jobless rate increased by three-tenths of a percentage point.  Since March 2007, total employment dropped by 30,000 while unemployment rose slightly by 5,000.  As a result, the region's labor force level decreased by 25,000 in that period.

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

Layoffs in Auto Related Manufacturing Reduce Payroll Jobs

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs fell in March by 22,000 to total 4,213,000.  A drop in manufacturing jobs (-15,000) led the decline.  These job cuts were primarily due to strike related layoffs in the auto industry.  Lesser reductions in government (-3,000) and construction (-2,000) were also recorded over the month.  The remainder of the major industry sectors recorded mostly minor decreases in their respective job counts.

Industry Employment Trends and Highlights

• The state's job decline in March was the largest over-the-month drop since October 2007.  From October 2007 through February 2008, monthly statewide job counts had been stable.
  
  
• Construction employment continued its downward trend in March.  This industry sector has posted monthly job declines in the majority of months since early 2007.
  
  
• Retail trade, a sector that consistently lost jobs throughout 2007, has been stable in the first three months of 2008.
  
  
• The goods producing sector, which includes natural resources and mining, construction, and manufacturing, makes up 18 percent of the current total job count in the state.  The service providing sector, which contains all the other sub-sectors, accounts for 82 percent of the job market.  Over the year, the goods producing sector in Michigan was responsible for 80 percent of the state's payroll job decline.
  
  
• From March 2007 to March 2008, payroll jobs in Michigan fell by 74,000 or 1.7 percent.  In that period, the sectors showing the most significant job loss were manufacturing (-46,000), government (-13,000), and construction (-12,000).
  
  
• Since March 2007, education and health services (+13,000) was the only major industry sector in Michigan to register job growth.
  
  
• Seasonally adjusted average weekly hours of production workers in manufacturing were unchanged over the month, but showed an increase over the year.  Average weekly earnings in manufacturing increased over the month as well as 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.