Michigan’s Jobless Rate Hits 4.7% in October
Michigan’s jobless rate has risen for the seventh consecutive month, reaching 4.7% in October, according to the latest data from the Department of Technology, Management, and Budget. This marks a 0.2 percentage point increase compared to the previous month. The rise in unemployment is attributed to a loss of 9,000 jobs and a 6,000-person increase in the number of unemployed individuals. As a result, Michigan’s workforce shrank by 3,000 people between September and October.
Wayne Rourke, labor market information director for the Michigan Center for Data and Analytics, explained that the uptick in the state’s jobless rate reflects both a decrease in the workforce and an increase in unemployment. Additionally, total payroll jobs in the state also showed a slight decrease.
While Michigan’s jobless rate continues to climb, the national unemployment rate remained unchanged at 4.1% from September to October. Michigan’s unemployment rate is 0.6 percentage points higher than the national average, reflecting a 0.5 percentage point increase over the past year, compared to a 0.3 percentage point rise at the national level.
Economic Slowdown and Industry-Specific Challenges
Experts attribute Michigan’s rising unemployment rate to broader economic trends, with concerns about an economic slowdown affecting various sectors. Patrick Anderson, CEO of Anderson Economic Group, emphasized that while he is not declaring a recession, there has been a noticeable slowdown in the U.S. economy over the past six months to a year.
Anderson noted that Michigan, heavily reliant on the automobile industry, is particularly vulnerable to downturns. He explained that during a recession, consumers often delay purchasing new cars, which directly impacts the state’s economy. Additionally, Tim Nash, executive director of the McNair Center for Free Enterprise, pointed to announced layoffs within the auto industry, particularly due to the shift toward electric vehicles. Companies like General Motors, Ford, and Stellantis have either announced or are considering layoffs, which could also affect their suppliers.
Sector-Specific Job Losses and Gains
Michigan’s job market showed mixed results across various sectors in October. The state experienced a small decrease of 1,000 in seasonally adjusted nonfarm payroll jobs, following a gain of 8,000 jobs in September. The biggest sector loss came from the leisure and hospitality industry, which saw a drop of 5,000 jobs. However, the private education and health services sector experienced the most significant growth, adding 3,000 jobs. The financial activities sector also continued its growth trend, adding 5,000 jobs since June 2024.
In the past year, Michigan has seen notable job gains in several sectors, including 19,000 government jobs, 15,000 jobs in construction, and 11,000 jobs in private education and health services. Despite these gains, Anderson expressed concerns about the increasing growth of government jobs in contrast to the shrinking private sector, particularly in manufacturing. He warned that this trend is unsustainable, noting that while government and health services jobs grow, the private sector remains sluggish, creating a potential mismatch in the state’s job market.
