jobs

Rolling the Dice

Apr 18, 2011

We in the media have been paying a lot of attention to Governor Snyder’s attempts to push his program through the legislature. Mostly, we‘ve been preoccupied with the mechanics.

Last week, we talked about his compromise on the pension tax. Soon, we‘ll be discussing what seems likely to be the governor’s  success at cutting spending for the schools. Occasionally, we remember to mention the reason for all this painful budget slashing.

Miguel Vaca / Flickr

"Would you like some fries with that?"

That’s the phrase many are perfecting for McDonald's National Hiring Day tomorrow. Many of the McDonald’s  jobs will be in the Midwest.

McDonald's got its start here in the Midwest, and it has a substantial presence throughout the Great Lakes states.

That’s why 10,000 of the 50,000 new workers, the company wants will be based across the region.

The McDonald's in downtown Chicago (on Chicago and State) is one location that is hiring. Nick Karavites and his family own that restaurants and 18 others across the city.

"Not only are we looking to hire cashiers but also hospitality staff and kitchen staff," says Karavites.

As the employment market improves, job seekers can get more selective about where they work.

Karavites said pay at their restaurants averages $9 an hour, and that all workers can participate in a McDonald’s Insurance program.

McDonald’s says the company needs more workers because last year’s sales were up five percent and continues to grow.

mich.gov

A Detroit lawmaker is angry over what he calls a unilateral decision to close the Mound Road Correctional Facility in the city.

Representative Fred Durhal is a member of the House Appropriations Corrections Subcommittee, but he says he was not consulted about closing the Mound prison.

Durhal says Rep. Joe Haveman told the committee only they would close a prison in the north, south, east and west parts of the state in a budget-cutting move.

"It caught me by total surprise," Durhal says. "I have not had an opportunity to look into just where those prisons would be, if those are the criteria that he is using. I think they should have had some discussion inside of the entire committee."

The Mound Road prison is one of the state's newer facilities. It houses about 1,000 prisoners and employs about 200 people.

Khalilshah / Flickr

One in 10 people in Michigan are out of work and looking for a job. The state's March unemployment rate was 10.3 percent. That's almost unchanged from the February rate of 10.4 percent. But it's a full three points below the March 2010 rate of 13.3 percent.

Michigan added 79,000 jobs over the past year, mostly in temporary help, IT, and the auto in industry.

Improvements in the unemployment rate have been modest so far this year, but reflect real job gains and not people leaving the workforce.

Michael Gil / wikimedia commons

Last year, many automakers brought in profits and announced that they would open up new factories and add new jobs.

But the industry is adding new jobs at a time when qualified candidates are hard to come by.

David Shepardson wrote about the shortage in the Detroit News today:

(photo by Steve Carmody/Michigan Radio)

Michigan’s jobs picture is getting brighter, according to a new report out of the University of Michigan. University of Michigan economists say the state is starting 2011 with “robust job growth."  

Michigan spent much of the past decade watching its job numbers decline. But after some gains in 2010, U of M economists credit a bounce in manufacturing with getting the state off to a great start this year. The job growth rate is on pace to increase by 3.8% this year.     

The economists say Michigan has posted a stronger recovery rate than the rest of the nation during the past year and a half. However, that may not last. 

The U of M economists predict Michigan’s job growth will cool off, but still the economists predict the state could add 64,000 jobs this year.

Two Democratic state lawmakers are preparing legislation that would restore unemployment benefits cuts recently signed into law by Governor Rick Snyder.  Snyder signed legislation to extend federal jobless benefits, but the bill also contained a provision shrinking state unemployment benefits from 26 to 20 weeks next year.  

Republicans lawmakers pushed for the jobless benefits cuts, saying it will reduce the burden on Michigan businesses, which pay into the state unemployment insurance pool. Jim Ananich is a state representative from Flint.   He’s introducing legislation to restore those benefits.  

“You know I’m hopeful that they will see the error of their ways and see that now is not a time to be taking money out of people’s pockets.”

Ananich hopes to introduce his bill next month.

(Courtesy of the Michigan governor's office)

Update 11:33 a.m.:

Michigan Congressman John Dingell (D) has released a statement condemning Snyder's signing of the new law. In a written statement, Representative Dingell said:

"This law is another in a long string of Republican assaults on working families and unions. In one fell swoop, the Republicans in Lansing have made it so that people in Michigan receive state employment benefits for a shorter period of time than anywhere else in the nation. Michigan does face a budget crisis, but it cannot be solved by declaring war on the unemployed, who - now more than ever - need all the help they can get in order to support their families and find new jobs."

Original Post 10:52 a.m.:

Governor Rick Snyder today signed legislation extending jobless benefits. The law will allow 35,000 Michiganders to receive an addition 20 weeks of federal jobless benefits. Their benefits would have expired April 1st. In a written statement, Snyder says: 

"These benefits are a lifeline for many Michigan families who are struggling in this challenging economy... Cutting them off so abruptly would have jeopardized the well-being of those who are trying hard to find work. Now that we have continued this safety net, we must renew our focus on improving Michigan's economic climate. We will continue driving forward with our job-creating reforms so that fewer people need to rely on unemployment benefits."

Democrats pushed for the extension, but many eventually opposed the final version. The final legislation was amended to reduce the number state jobless benefits from 26 to 20 weeks.

Republicans say reducing the length of state benefits will reduce the burden on state businesses that pay into the state jobless benefits pool. By cutting the number weeks of state jobless benefits,  future unemployed Michiganders will be eligible for fewer weeks of additional federal unemployment benefits.  

According to the state Department of Energy, Labor and Economic Growth, the average unemployed Michigander uses about 19 weeks of jobless benefits. Michigan's unemployment rate declined to 10.4% in February. There were slightly less than a half million people in Michigan without a job who wanted one.  

Michigan's jobless rate is still about 2 percentage points higher than the national average. But the state's jobless rate has been declining since September 2009.

(Flickr swanksalot)

UPDATE 1:24 p.m.:   A spokeswoman for Governor Rick Snyder says the governor expects to sign the bill which would reduce the number of weeks jobless Michiganders will be able to recieve state unemployment benefits. Spokeswoman Sara Wurfel says:

"(The governor's) priority was to ensure no one receiving unemployment benefits was cut off abruptly. It's a lifeline for Michiganders right now - we simply can't risk tens of thousands of Michigan's families immediately losing their benefits in April.  He’s continuing to work tirelessly to help turn around Michigan's economy and create more and better jobs so that we can hopefully reduce the need for unemployment in the first place."

ORIGINAL POST 12:17 p.m.: Democrats are calling on Governor Rick Snyder not to sign legislation that will reduce state unemployment benefits to Michiganders from 26 to 20 weeks. The Republican controlled legislature passed the benefits  cut Wednesday, as part of  a bill to continue extended federal jobless benefits to Michigan’s unemployed.

Royal Oak Congressman Sander Levin says the governor should veto the bill that will eventually reduce benefits for Michigan’s most in need.  

"This is the worst time to do this for Michigan workers.  I think it is reckless.  It’s inexcusable.”

Cutting state benefits will reduce the cost to Michigan businesses that must pay into the unemployment fund.  Cutting state unemployment benefits by 6 weeks could also reduce federal unemployment benefits by up to 16 weeks for jobless Michiganders. The Michigan Chamber of Commerce says the change will save state businesses $300 a year starting in 2012.

Levin says it’s unfair to shorten the period unemployed Michiganders can receive jobless benefits. 

“The governor can say to the legislature 'Get back.  Do what needs to be done here.  And stop the hijacking.'”

Federal jobless benefits for 35,000 unemployed Michiganders will expire April 1st  if Snyder vetoes the bill.

People who file for unemployment benefits next year would be eligible for fewer weeks of payments under a Republican measure approved by the state Senate. The Legislature must approve a jobless benefits package this week in order for the state to receive federal assistance for the program.

Thirty-five thousand Michiganders stand to lose their benefits if the legislature does not agree to the extension by April 1st. 

Democratic state Senator Tupac Hunter says Republicans are using the opportunity to undercut benefits for people who seek the payments in the future.

“This is 100 percent federally funded, we have an opportunity to address that today, and I think that we’ve chosen political games over helping our workers across this great state.”  

Republican state Senator Tom Casperson says the additional benefits would put too much strain on businesses. 

“Putting people into jobs is the way to fix the problem. But we don’t get there when every time we open our mouths we demonize the very job providers that are going to provide the jobs for us. This is trying to offer an opportunity for both sides; a safety net and add to the unemployment, and a fairness to the business people paying the bill.”

The bill was passed and now moves to the state House for final approval.

(Flickr ziggy fresh)

Michigan’s unemployment rate dropped slightly in February. Michigan’s seasonally adjusted unemployment rate declined by 3 tenths of one percent last month to 10.4%.

The state’s jobless number was still one and a half percentage points above the national unemployment rate of 8.9%.  

Michigan’s unemployment rate has been falling since September 2009. And last month, the number of jobless Michiganders fell below a half million for the first time since November 2008.

(Flickr Steve Rhodes)

The unemployment benefits of 35 thousand jobless Michiganders are about to expire.  There is some debate whether the state should act to extend their benefits by another 20 weeks.    The debate is between those who say the benefits are critical to jobless workers and business groups that say they don’t want to be forced to pay for those benefits.  The clock is ticking.  

Khalilshah / Flickr

Michigan's unemployment rate continued in decline in January to 10.7 percent. That's the lowest it's been in more than two years. And, it's three percentage points lower than the same time last year: the jobless rate in January 2010 was 13.7 percent.

The national jobless rate in January of this year was 9.0 percent.

Carlota Soc / creative commons

A mail processing center in Flint may be slated for closure next month. The United States Postal Service may move the city’s mail sorting and processing to Pontiac.

Shannon LaBruyere is with the U.S. Postal Service. She says if the closure goes through, 113 jobs will be affected; half would be relocated to Pontiac, half would be offered other positions likely outside of Michigan.

"They will be the people who bear the brunt of the change. Our customers, from our preliminary assessments, won’t see any change in the service they receive."

USPS will hold a public meeting to discuss the possible Flint closure on March 23 at the city's Holiday Inn Gateway Centre.

The Postal Service lost $8.5 billion last fiscal year and plans to close 2,000 post offices nationwide this year. LaBruyere says USPS would save "$6.5 million dollars per year" by moving Flint operations to the Michigan Metroplex in Pontiac. 

A Washington Post article in February says President Obama's 2012 budget recommends about $11 billion in relief to help stem losses at the Postal Service:

The losses stem in part from hefty personnel costs not borne by other federal agencies. One is a requirement, imposed by a 2006 law, that it set aside money each year to cover the costs of future health benefits for its retired workers.

In the Obama administration's first substantive attempt to address the Postal Service's fiscal woes, the budget would allow the agency to pay $4 billion less toward future retiree health benefits than otherwise required. The mail agency would have to pay about $1.5 billion of those costs in fiscal 2012 and make up the difference in later years.

The budget proposal also adjusts the size of the annual payments by taking into account the size of the workforce, which has shrunk to about 583,000 full-time employees since the law passed in 2006.

Public transportation officials in Grand Rapids are excited about one detail in President Obama’s budget announced this week. A proposed rapid bus transit system in Grand Rapids is one of ten new construction projects that Obama would like to fund in 2012.

Rich Allosi / Flickr

The national economy added 49,000 manufacturing jobs in January. That’s more new jobs than in health care, retail or any other major sector of the economy.

It’s good news for the Midwest, where thousands of manufacturing workers are expected to be hired over the next few years.

The number of students enrolled in manufacturing training and engineering courses is on the rise at two year colleges. But some employers say they still have a hard time finding qualified candidates.

Michigan Radio’s Changing Gears project is looking at the economic future of the Midwest.

Michelle Kanu filed this report from Cleveland:

The unemployment rate fell .4 percentage points in January to 9.0%.

Keith Hall, the Commissioner of the Bureau of Labor Statistics said today:

In January, employment increased in manufacturing and retail trade, while job losses occurred in transportation and warehousing and in construction.  Employment in most other major industries changed little. Manufacturing employment grew by 49,000 over the month and has increased by 161,000 since a recent low point in December 2009.

The Associated Press reports:

The unemployment rate has fallen by eight-tenths of a percentage point in the past two months. That's the steepest two-month drop in nearly 53 years. But part of that drop has occurred as many of those out of work gave up on their job searches. When unemployed people stop looking for jobs, the government no longer counts them as unemployed.

Officially, there are about 13.9 million people in the country out of work. The AP says "that's still about double the total who were out of work before the recession began in December 2007."

The unemployment rate in Michigan stands at 11.7% as of December. New numbers should be out in the coming week.

Allan Chatto / Flickr

Sylvia Rector, a Detroit Free Press Restaurant Critic, has a nice little piece in the Freep about a shortage of pizza pans around the state.

The pizza pan of choice for local restaurants is a blue steel pan that was once made in West Virginia.

The pans were never intended for baking. They were designed to hold small parts in factories.

Overtime the pans "became the pan of choice for nearly every big name in Detroit-style pizza" (Rector describes Detroit -style pizza like this "dough for the thick but airy crust, absurd amounts of cheese and ladles of rich, long-simmered sauce").

But the company moved its operation to Mexico, and they haven't been able to get production up and running.

Pizza makers were distraught. They needed the pans. From the article:

Restaurant supply companies here -- and apparently everywhere else -- have been out of them for many months.

Pizza makers' orders for pans are stacking up by the thousands and causing problems for big chains and small independents alike.

"You wouldn't even believe how many pans we have on back order" -- at least 4,000 small and medium sizes and 700 extra larges -- says Patti Domasicwicz at People's Restaurant Equipment in Detroit. She hasn't received a shipment since April.

One pizza maker couldn't wait. So he took it upon himself to start making the pans in Michigan.

Eugene Jett, co-founder of Jet's Pizza, says he found a manufacturer that would do it:

"They're cutting them as we speak...The first thing is for me to get my pans...It took me a long time to figure out how to get them done...But I decided then, I will build my own pans."

Rector writes that if the manufacturer thinks the pans will be profitable, they might put the pans into full production.

Perhaps another sign that Michigan is diversifying it's economy.

Steve Carmody

Retailers say they are more hopeful than they’ve been in many years that Michigan is close to repealing the law that requires them to put a price sticker on every item they sell. But unions and Democrats say they will put up a fight to preserve what they say is a significant consumer protection.

James Hallan is the president of the Michigan Retailers Association. He says store-owners were pleased to hear in Governor Rick Snyder’s State of the State address that he is on their side. And Hallan says retailers hope the Legislature’s large Republican majorities will go along with scrapping the 35-year-old law.

“We have a new administration that is progressive. We have a legislative body that is progressive, and technology has come a long ways from where it was in 1976. Cell phones were not around in 1976. You look at all the new technology, and it’s time we embrace this and not walk away from it."

But not everyone is on board. Chris Michalakis is with the United Food and Commercial Workers union. He says the item-pricing law remains popular with the public.

“What we’re hoping is our Republican governor and our Republican majorities in the House and the Senate will listen to consumers and members of their community and when they look to change this law, do it in a way that voters are comfortable with and do it in a way that protects consumers and protects jobs.”

Employee unions say the law remains popular with the public for a reason and, if anything, the item pricing law should be more strongly enforced.

Lindsey Smith / Michigan Radio

The federal department of Housing and Urban Development announced this week its granting $56 million dollars to Michigan to prevent homelessness. The money funds 269 separate programs all over the state.

Khalilshah / Flickr

Michigan's unemployment rate dropped in December to 11.7 percent. But, as Rick Pluta reports, the decline in the jobless rate was due mostly to people who have stopped looking for jobs:

Michigan’s unemployment rate dropped steadily throughout 2010. But there are still 555,000 people in Michigan who are out of work and looking for jobs. Half of them have been looking for six months or more.

There was little new hiring last month. The number of people who simply stopped looking for work is the biggest reason for the decline in the jobless rate. The state Department of Energy, Labor, and Economic Growth says the number of people who say they are available to work fell by 37,000.

When people who are looking for jobs, those who’ve quit looking, and part-time workers who’d like to be full-time are rolled together, Michigan’s rate of unemployment and under-employment is 21 percent.

Michigan’s unemployment rate in 2010 was 13.6 percent. That’s a drop of half a percentage point from the 2009 average.

United Van Lines

One sign of a tough economy is the sight of a big moving truck out in front of the neighbor's house.

And according to one moving company's study, Michigan has seen more of those moving trucks leaving the state than entering the state.

In it's 34th annual "migration" study, United Van Lines says Michigan ranked second in outbound traffic in the country.

The Wall Street Journal and the Detroit Free Press are reporting that Ford plans to announce the creation of 7,000 more jobs at today's auto show. From the Wall Street Journal:

Ford Motor Co. on Monday is expected to announce it will hire 7,000 workers in the U.S. over the next two years, according to a person familiar with the matter. Ford President of the Americas Mark Fields is expected to confirm the news at the auto maker's presentation before the North American International Auto Show in Detroit, this person said.

flickr - photodu.de

The Grand Rapids Press reports that AT&T plans to cut 110 union jobs in West Michigan. The paper reports:

The West Michigan job losses are part of a total of 371 jobs being eliminated by the telecommunications giant in Michigan, said Ryan Letts, president of the Communications Workers of America Local 4034.

Letts is quoted as saying they saw the job cuts coming because the telecommunications industry is changing:

screen grab of YouTube video

Columbus Dispatch videographer Doral Chenoweth III says he filmed Ted Williams on a whim.

"We run into these guys at the exit ramps and we pretty much ignore them," said Chenoweth, who was en route with his wife to the grocery store when he first saw Williams. "This guy was using his talent."

Ted Williams was standing on a street corner near a highway exit ramp in Columbus, Ohio holding a sign that said "I have a God-given gift of voice. I am an ex-radio announcer who has fallen on hard times. Please any help will be greatfully (sic) appreciated..."

And when you hear his voice, it's uncanny. It sounds as if you've just stepped into a commercial radio or television broadcast. It almost sounds fake. Listen for yourself:

(Written by Eliot Johnson, and Zoe Clark)

Every Michigan resident is familiar with the economic challenges facing the state. From job losses to foreclosures. The challenges we face are daunting. No single person can fix all the broken pieces of the state. But Michigan Radio has been on a quest this year to learn about the little things each of us can do to make a difference.

All this year, Michigan Radio's Morning Edition Host Christina Shockley has been talking to people from across the state about ways to improve Michigan. We call it the Three Things Series because we asked each person for three ways that ordinary Michiganders could help the state.

The response has been amazing, generating hundreds of ideas for each of us to consider and act upon. From recycling to community organizing to drinking more Michigan beer, the ideas we've received have been a diverse collection of potential ways to improve both the state and our attitudes towards it.

Today, we concluded the Three Things Series with an hour-long call-in show. It will air again tonight at 8 p.m., or you can hear it here:

Michigan Governor-elect Rick Snyder
wikimedia commons

Governor-elect Rick Snyder told a crowd in Detroit today that Michigan will beat analysts’ economic growth expectations in the coming years.

Snyder spoke to a group of accounting students at Wayne State University. He recounted an experience at a recent National Governors Association meeting.

Snyder says the investment firm Moody’s ranked each state for projected job growth. He described what he saw when he opened the folder for Michigan.

"The first number from 2009 to 2011 was 47," Snyder said. "The number from 2009 to 2014 was 50."

But the governor-elect called those projections "a piece of fiction."

"We’re going to beat the living daylights out of that number."

Snyder added that he plans to use his background as a CPA to put Michigan’s finances in order.

Jennifer Granholm
flickr user auberon

3 million jobs in 3 years. That's what soon-to-be-former-Governor Jennifer Granholm called for in her article in the Huffington Post.

Granholm calls for a "Jobs Race to the Top" modelled on the education "Race to the Top" program.

Dangle large sums of money in front of cash strapped states and see if you can get them to change their policies.

George Erickcek is Senior Regional Analyst at Upjohn Institute
Lindsey Smith / Michigan Radio

Researchers at the Kalamazoo-based Upjohn Institute predict Michigan’s economy is stabilizing, but caution it will be a long road to a full recovery.

“We have to realize that what Michigan is coming out of is not a transformed economy, although all of us would like to think that’s true. We’re coming out a leaner economy, a little bit meaner and little bit more advanced but in fact just kind of a smaller version of what we were before, in my opinion.”

Senior Regional Analyst George Erickcek says full recovery will depend on the state’ ability to meet the demand for trained workers in growing industries. In a presentation to leaders in Grand Rapids Wednesday, Erickcek said 25 to 34 year-olds are not achieving the same education levels as the generation before them. That’s the case in Michigan and the nation.

Cranes life a wind turbine blade
Stephanie Hemphill / MPR

The Detroit Free Press reports that a large scale wind turbine manufacturer plans to locate in Saginaw.

Northern Power Systems of Barre, Vt., intends to use a facility in Saginaw to manufacture its next-generation large wind turbines, expected to be the first ones built in the U.S. using 100% American-made parts.

Building wind turbines has been touted as a way to diversify a manufacturing base built around the automobile. Many auto suppliers in the state are also building parts for wind turbines. No report yet on how many jobs will be created.

But the future of wind power is uncertain. Tax credits and grants to develop wind energy are expiring at the end of the year. And with an ethic of austerity moving into Washington, there are little signs that they'll be renewed.

Pages