Mich. unemployment rises
Sour job market fuels 'one-state recession' as era of lucrative manufacturing jobs fades into the past.
Louis Aguilar / The Detroit News
Michigan's unemployment rate ticked up to 6.3 percent in June, up from 6 percent in May, as a weak job market continues to weigh down the state.
"After some significant monthly movements in the jobless rate in the first half of 2006, the May-to-June change in the unemployment rate was relatively minor," said Rick Waclawek, director of the Bureau of Labor Market Information and Strategic Initiatives of the Michigan Department of Labor & Economic Growth.
A slight increase of 10,000 jobs in manufacturing and government in June was offset by 12,000 total jobs lost, spread out among almost every other major sector, according to the Department of Labor's statistics.
It was the 58th consecutive month that Michigan's unemployment rate registered higher than the nation's, which remained unchanged at 4.6 percent in June.
Lansing economist Patrick Anderson has often described Michigan's lackluster economy as a "one-state recession."
Fueling that recession is the loss of thousands of auto industry jobs during the past year. Those stable, manufacturing jobs that paid handsome salaries defined an era that has virtually ended now in Michigan.
General Motors Corp. and Ford Motor Co. are cutting a total of 60,000 jobs nationally as part of sweeping restructuring efforts at their struggling North American units.
Parts maker Delphi Corp. is axing up to another 20,000 factory jobs nationwide as part of its Chapter 11 bankruptcy. Many of those cuts come right here in Michigan. The state has lost 18,000 manufacturing jobs since June 2005 and more than 158,000 from 1990 to 2005, a 19 percent decline.
Employment outlook bleak
Michigan's employment situation may get worse before it gets better, because the state still hasn't felt the full force of the auto industry job cuts, said Dana Johnson, chief economist for Comerica Inc.
"We will see a big drop in employment in the next six months, reflecting those buyouts," Johnson said. The ripple effect will be a continued weak housing market and sluggish job growth, he said.
For the past year, Detroit resident Ella Williams has put in a seven-hour shift, five days a week looking for a job at the Michigan Works! employment agency in downtown Detroit.
"Things are so tight right now, unless you have a friend on the inside, it's hard to get hired," she said. "It's all about who you know right now."
The 40-year-old mother of two hasn't worked since a three-week stint last summer when she packaged bumpers and side mirrors for Ford vehicles, she said.
To get to that job, Williams took a bus to the downtown Michigan Works! office, then was shuttled with other temporary workers 20 miles away to a facility in Brownstown Township. Williams doesn't own a car.
"All I can do is pray that my hard work will pay off," Williams said.
State lags in 'smart' jobs
As manufacturing jobs fade, the creation of "knowledge-based jobs" in Michigan grows at a much slower pace than the rest of the nation, according to the Ann Arbor think-tank Michigan Future Inc. Roughly defined as good-paying work that requires a college degree, knowledge-based jobs in Michigan grew 17 percent from 1990 to 2005, compared to 31.6 percent nationally, according to Michigan Future. If the state had matched the national rate, Michigan would have 220,000 more jobs than it does today, said Louis Glazer, executive director of Michigan Future.
But there has been some growth in "smart" jobs.
From June 2005 to June 2006, there have been relatively strong gains in the professional and business services (11,000 jobs) and education and health services (10,000 jobs), according to the state's latest data. Those sectors -- which include many educated or skilled workers -- need to keep on growing for Michigan's economy to rebound and diversify, Johnson said.
Legal secretary Toni Cusmano is among those skilled workers who have recently found work.
"I was surprised it took me so long," said Cusmano, 28, of Trenton. "Everywhere I interviewed, I was told I was qualified but no one was hiring. I sent out nearly 50 resumes and I finally found a job last week. I do feel like things are starting to pick up slowly," she said, since she knows two other friends who have found work in the past month.
"Finding a job is hard work."
Sour job market fuels 'one-state recession' as era of lucrative manufacturing jobs fades into the past.
Louis Aguilar / The Detroit News
Michigan's unemployment rate ticked up to 6.3 percent in June, up from 6 percent in May, as a weak job market continues to weigh down the state.
"After some significant monthly movements in the jobless rate in the first half of 2006, the May-to-June change in the unemployment rate was relatively minor," said Rick Waclawek, director of the Bureau of Labor Market Information and Strategic Initiatives of the Michigan Department of Labor & Economic Growth.
A slight increase of 10,000 jobs in manufacturing and government in June was offset by 12,000 total jobs lost, spread out among almost every other major sector, according to the Department of Labor's statistics.
It was the 58th consecutive month that Michigan's unemployment rate registered higher than the nation's, which remained unchanged at 4.6 percent in June.
Lansing economist Patrick Anderson has often described Michigan's lackluster economy as a "one-state recession."
Fueling that recession is the loss of thousands of auto industry jobs during the past year. Those stable, manufacturing jobs that paid handsome salaries defined an era that has virtually ended now in Michigan.
General Motors Corp. and Ford Motor Co. are cutting a total of 60,000 jobs nationally as part of sweeping restructuring efforts at their struggling North American units.
Parts maker Delphi Corp. is axing up to another 20,000 factory jobs nationwide as part of its Chapter 11 bankruptcy. Many of those cuts come right here in Michigan. The state has lost 18,000 manufacturing jobs since June 2005 and more than 158,000 from 1990 to 2005, a 19 percent decline.
Employment outlook bleak
Michigan's employment situation may get worse before it gets better, because the state still hasn't felt the full force of the auto industry job cuts, said Dana Johnson, chief economist for Comerica Inc.
"We will see a big drop in employment in the next six months, reflecting those buyouts," Johnson said. The ripple effect will be a continued weak housing market and sluggish job growth, he said.
For the past year, Detroit resident Ella Williams has put in a seven-hour shift, five days a week looking for a job at the Michigan Works! employment agency in downtown Detroit.
"Things are so tight right now, unless you have a friend on the inside, it's hard to get hired," she said. "It's all about who you know right now."
The 40-year-old mother of two hasn't worked since a three-week stint last summer when she packaged bumpers and side mirrors for Ford vehicles, she said.
To get to that job, Williams took a bus to the downtown Michigan Works! office, then was shuttled with other temporary workers 20 miles away to a facility in Brownstown Township. Williams doesn't own a car.
"All I can do is pray that my hard work will pay off," Williams said.
State lags in 'smart' jobs
As manufacturing jobs fade, the creation of "knowledge-based jobs" in Michigan grows at a much slower pace than the rest of the nation, according to the Ann Arbor think-tank Michigan Future Inc. Roughly defined as good-paying work that requires a college degree, knowledge-based jobs in Michigan grew 17 percent from 1990 to 2005, compared to 31.6 percent nationally, according to Michigan Future. If the state had matched the national rate, Michigan would have 220,000 more jobs than it does today, said Louis Glazer, executive director of Michigan Future.
But there has been some growth in "smart" jobs.
From June 2005 to June 2006, there have been relatively strong gains in the professional and business services (11,000 jobs) and education and health services (10,000 jobs), according to the state's latest data. Those sectors -- which include many educated or skilled workers -- need to keep on growing for Michigan's economy to rebound and diversify, Johnson said.
Legal secretary Toni Cusmano is among those skilled workers who have recently found work.
"I was surprised it took me so long," said Cusmano, 28, of Trenton. "Everywhere I interviewed, I was told I was qualified but no one was hiring. I sent out nearly 50 resumes and I finally found a job last week. I do feel like things are starting to pick up slowly," she said, since she knows two other friends who have found work in the past month.
"Finding a job is hard work."
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