July seasonal unemployment rate increases

Published 6:53 am Friday, August 25, 2006

By Staff
July seasonally unadjusted unemployment rates increased in all of Michigan's 17 major labor market areas, according to the Michigan Department of Labor and Economic Growth. Labor force and total employment levels decreased seasonally in most areas over the month.
"The primary factor pushing up July jobless rates in most Michigan regions was temporary layoffs resulting from the annual auto-industry retooling for the new model year," said Rick Waclawek, director of the Bureau of Labor Market Information &Strategic Initiatives. "Jobless rates in most regions are comparable or up slightly from July 2005 levels."
The July regional jobless rate increases were seasonal and substantial in most areas, ranging from 0.3 of a percentage point to 2.6 percentage points.
The average advance for the 17 regions was a fairly significant 1.2 percentage points. The largest over-the-month unemployment rate hikes occurred in the Monroe and Flint Metropolitan Statistical Areas (MSAs), while the smallest rate increase took place in the Upper Peninsula.
Jobless Rates Up Slightly Over The Year
From July 2005 to July 2006, jobless rates increased in 15 of the state's major labor market areas. The majority of these rate increases were minor, averaging 0.3 of a percentage point. The Monroe MSA (+1.0 percentage point) and the Northeast Lower Michigan Region (+0.9 percentage point) were on the high end of over-the-year rate increases, while most other regions recorded moderate advances of a half percentage point or less.
Since July 2005, the unemployment rate in the Lansing-East Lansing MSA declined slightly, while the rate in the Muskegon-Norton Shores MSA was unchanged.
Total Employment Down Over Month, Up Over Year
From June to July, total employment levels fell in 15 regions, with many areas posting substantial seasonal decreases due to the combination of model-changeover and the end of the school year. The Northwest Lower Michigan Region and the Upper Peninsula registered total employment gains over the month as hiring continued for the summer tourism season.
Since July 2005, total employment levels increased in 11 of the state's major labor market areas with an average gain of one percent. The Holland-Grand Haven MSA displayed the biggest total employment boost in this period. From July 2005 to July 2006, total employment declined in six regions with the largest declines reported in the Detroit-Warren-Livonia and Saginaw-Saginaw Township North MSAs.