Michigan's Jobless Rate Climbs To 5.0% As Factories Shed Workers

Michigan's labor market lost ground in August. The state's seasonally adjusted unemployment rate rose a tenth of a point to 5.0%, according to data released September 17 by the Michigan Department of Technology, Management and Budget. Employment fell by 25,000 over the month, and the labor force shrank by the same amount.

Manufacturing leads the decline

Factories drove the drop. "Payroll jobs declined due to losses in manufacturing this month," said Wayne Rourke, labor market information director for Michigan's Center for Data and Analytics. Manufacturing posted the largest over-the-month employment decrease of any sector.

The weakness extends beyond August. Over the past year, Michigan's total employment has fallen 3.2%, far steeper than the 0.4% decline recorded nationally — a gap that underscores how exposed the state remains to the auto industry's ongoing turbulence.

Detroit feels it most

The Detroit-Warren-Dearborn metropolitan area saw its seasonally adjusted jobless rate rise from 5.3% in July to 5.4% in August, keeping the region above the statewide mark. With the automakers slowing electric-vehicle plans and trimming shifts, the metro that defines Michigan's economy is absorbing an outsized share of the pain — and the latest numbers suggest the slowdown isn't over yet.