unemployment

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According to the Michigan Department of Technology, Management & Budget, for the month of November most of the "seasonally unadjusted unemployment rates" fell in 14 of the state's 17 major labor market areas.

From their press release:

“November was a favorable month in many of Michigan’s local labor markets,” said Rick Waclawek, director of the Bureau of Labor Market Information & Strategic Initiatives.  “The only increases in unemployment were seasonal and expected in the state’s northern regions with the conclusion of the summer and fall tourism seasons.”

Officials from the Department of Technology, Management and Budget say when comparing November 2011 to November 2010 - all of the state's 17 regions experienced declines:

From November 2010 to November 2011, unemployment rates fell in all of the state’s 17 regions.  Over-the-year rate declines ranged from 1.7 to 3.3 percentage points with a significant median drop of over two and a half percentage points.  The largest rate decreases since November 2010 occurred in the Flint and Muskegon-Norton Shores MSAs along with the Northeast Lower Michigan region.

Here's the list of the 17 major labor markets in Michigan by rank of lowest unemployment rate (Ann Arbor area) to highest (Northeast Lower Michigan).

The list compares unemployment rates from November 2010 to rates in November 2011:

  1. ANN ARBOR MSA- 6.9 percent to 5.2 percent
  2. LANSING - EAST LANSING MSA 8.3 percent to 6.4 percent
  3. GRAND RAPIDS - WYOMING MSA 9.0 percent to 6.5 percent
  4. HOLLAND - GRAND HAVEN MSA 9.3 percent to 6.5 percent
  5. BATTLE CREEK MSA  9.5percent to 6.9 percent
  6. KALAMAZOO - PORTAGE MSA 9.3 percent to 6.9 percent
  7. BAY CITY MSA10.0 percent to 7.4 percent
  8. MONROE MSA 10.3 percent to 7.5 percent
  9. SAGINAW-Saginaw Township North  MSA 10.3 percent to 7.7 percent
  10. JACKSON MSA 10.8 percent to 7.8 percent
  11. NILES - BENTON HARBOR MSA 10.6 percent to 8.2 percent
  12. UPPER PENINSULA LMA 10.6 percent to 8.2 percent
  13. MUSKEGON - NORTON SHORES MSA 11.5 percent to 8.4 percent
  14. FLINT MSA 12.0 percent to 8.7 percent
  15. NORTHWEST LOWER MICHIGAN 12.4 percent to 9.4 percent
  16. DETROIT-WARREN-LIVONIA MSA11.6 percent to 9.5 percent
  17. NORTHEAST LOWER MICHIGAN 13.7 percent to 10.6 percent
Bytemarks / flickr

The state has issued bonds to wipe clean a $3.2 billion debt to the federal government.  That’s money Michigan had to borrow to cover its unemployment benefits costs.

Michigan racked up the debt because the tax employers pay into the Unemployment Trust Fund wasn’t keeping pace with payments that needed to be made to laid-off workers.

Employers will be the ones on the hook for paying off the bonds. The state’s Unemployment Insurance Agency will send out invoices this spring.

The bond sale was made possible by legislation passed just before lawmakers adjourned for the year. That’s important, since repaying the federal government by the end of the year will ultimately allow employers to save as much as $200 million in interest costs.

Michigan had to pay $38 million in interest on its unemployment insurance loans this year.

House Democrats / Michigan.gov

Governor Rick Snyder signed major changes to employer paid benefits into law yesterday.

The changes will limit how much an injured worker can be compensated based on how much an insurance company thinks that worker could make at another job, among other things.

The new law will also make it more difficult for a person to collect jobless benefits.

Governor Snyder signed big changes to employer paid benefits into law this afternoon. One limits how much injured workers can be compensated (basing their pay on how much an injured worker could potentially make at another job), and another limits a person's ability to collect unemployment payments.

More from the Associated Press:

The bills would further limit the ability of a person who was fired for cause or who may have left a job voluntarily from collecting jobless benefits.

They would require some unemployed workers to take jobs after 10 weeks of benefits even if the jobs are outside the unemployed worker's previous experience or pay lower wages.

The measures also would push injured workers to seek some type of employment once they're able.

Democrats say the new laws could unfairly keep hurt or jobless workers from getting benefits. Republicans say they'll cut down on fraud.

Michigan Radio's Rick Pluta reports:

The measures will also allow Michigan to sell bonds to repay unemployment loans to the federal government. Snyder says those loans cost taxpayers almost $40 million in interest this year, and businesses $137 million in penalties.

“By doing this financing we can essentially get out of the penalties and we can lower our interest costs and be successful and give our employers a better path to create jobs, which I want to emphasize is the real point behind this,” said Snyder.

Michigan's unemployment rate fell by eight-tenths of a percentage point last month to 9.8 percent. This is the first time since November of 2008 that Michigan's jobless rate has dropped below 10 percent. The national November unemployment rate is 8.6 percent.

The jobless rate fell by eight-tenths of a percentage point in November. That’s a sharp drop and much of it was due to new hiring. But retail was the only sector to show significant growth from month to month and much of the decline is also due to about 19,000 fewer people in the workforce competing for available jobs. All told, there are still about 457,000 people in Michigan without jobs and looking for work.

At 9.8 percent, the state’s unemployment rate is still above the national rate.

When people who have quit looking are counted, along with part-time workers who’d like to be full-time, Michigan’s rate of unemployment and under-employment is 18.8 percent. 

Lindsey Smith / Michigan Radio

The Grand Rapids economy grew faster than predicted this year and economic forecasters say growth will continue into 2012.

George Erickcek is an economist at the Upjohn Institute for employment research. He says the Grand Rapids economy did grow in 2011, but only by two-percent. (His full presentation is linked here.)

“There’s been no talk of a double dip for many, many months. But the growth…is disappointing. It’s not the growth we want,” Erickcek told a group of business leaders assembled Wednesday.

He says a recovering auto industry and gains in advanced manufacturing are the main reasons Grand Rapids’ economy has grown.

In fact, Erickcek says Grand Rapids is technically over the recession in terms of employment numbers.

Michigan Congressman Sander Levin says Congress should cancel its winter recess if members can’t reach a deal to extend unemployment benefits.

Right now, the federal government supplements state unemployment programs to offer assistance for the long-term unemployed--up to 53 weeks of emergency benefits since the country slid into recession in 2008.

But those benefits will lapse January 1 if Congress doesn’t act this month.

user brother o'mara / Flickr

In wake of petition drive, emergency manager law being revamped

Lawmakers say they're trying to avoid "chaos" by retooling the state's emergency manager law (Public Act 4). A petition drive could put the question of whether or not to keep the EM law in front of voters next November. If petition drive organizers are successful, the law could be suspended until that vote takes place.

More from the Detroit Free Press:

State Treasurer Andy Dillon told the Free Press he has encouraged legislative leaders to rewrite the law. The alternative, he said, is "a pretty confused situation" if the law is suspended. State Rep. Fred Durhal, D-Detroit, said passing a new law to counter a voter repeal effort would be "a slap in the face to the Legislature and to the people." If the law is suspended, Gov. Rick Snyder said he believes Michigan would revert to a weaker emergency manager law from 1990, but there's no guarantee the courts will see it his way.

Detroit Mayor Bing reports progress with unions

Detroit could be the next city in line for a takeover by a state-appointed emergency manager. Detroit leaders say they're working on the city's financial problems to avoid a takeover. In a radio interview this morning, Mayor Bing said progress is being made with the city's unions.

From the Detroit News:

In an interview with WWJ-AM (950), Bing said he's asking the city's unions for reduced wages and reform to pension, health care and work rules because "that's where we can get the most flexibility and savings." "Yes, we're making progress," Bing told WWJ's Vickie Thomas around 7:30 a.m. "I think the unions understand at this point that they've got to be part of the solution." The expected number of citywide layoffs — about 1,000 — hasn't changed since Bing gave a televised address to the city last month. He doesn't know which departments the city will hit first, but public safety will be last on the chopping block.

Protesters tell Congressman to extend unemployment benefits

Michigan Radio's Steve Carmody reported on about three dozen picketers outside of Michigan Congressman Mike Rogers Lansing office:

They were there to draw attention to a deadline looming at the end of the month. 66,000 Michiganders may lose their unemployment benefits in January if an extension is not passed.   

Protester Ronnie Rosner says this is a bad time to let unemployment benefits to expire.  

“When the price of food…gas   and other necessities are going up …when people can not afford to buy goods and services…our whole economy suffers," says Rosner.   

Congressman Rogers’ office issued a written statement …expressing support for extending unemployment benefits.   But he says… as important…is the need for policies promoting economic growth.

(photo by Steve Carmody/Michigan Radio)

Union members and others picketed outside the offices of Michigan’s Republican congressmen today to protest the lack of a deal to extend unemployment benefits.

About three dozen protesters waved signs at honking motorists outside Congressman Mike Rogers Lansing office. They were there to draw attention to a deadline looming at the end of the month.

Sixty-six thousand Michiganders may lose their unemployment benefits in January if an extension is not passed

user brother o'mara / Flickr

Extension of unemployment benefits

Congress might debate whether to extend unemployment benefits this week. It's a decision that could impact tens of thousands of Michigan residents.

From the Detroit Free Press:

Unless Congress acts to continue extended unemployment benefits, it could be a grim holiday season for nearly 160,000 Michiganders.

An end to the extended benefits would immediately impact 61,000 state residents who are getting this federal aid after exhausting their 26 weeks of state-funded assistance.

Another 98,743 people who are receiving state benefits would no longer get additional help if they are still jobless after 26 weeks.

Experts worry about future of U.S. battery manufacturing

Some experts worry about the longevity of battery manufacturing in the U.S. In Michigan, battery manufacturing is seen as a new economy in the state. The companies have enjoyed investments from private and government entities. But can this type of green manufacturing compete? The Wall Street Journal reports on the current state of some battery manufacturers:

So far, the results have been disappointing. Some high-profile battery makers have stumbled, burdened by high manufacturing costs, strong competition from Asian rivals and a slower-than-expected rollout of electric vehicles. Now the companies are responding by cutting costs, scaling back production and trying to tap other markets, such as large-scale storage for the electricity grid.

State plans to consolidate office space for workers

State officials are hoping to save money by moving workers out of leased offices and into state-owned buildings. According to the Detroit Free Press:

In the last 10 years, the state has shed close to 20% of its workers, but hasn't made similar reductions in its office space. What's more, use of laptops, cell phones and other mobile technology means far fewer state employees need their own office space.

The paper reports leases cost the state around $90 million a year.

Tiberius Images / Flickr

Governor Rick Snyder will deliver his fifth special message of the year tomorrow at Delta College near Saginaw, where he is expected to outline a strategy to better match the skills workers have to positions that are available right now.

The governor is looking for ways to bring down Michigan’s persistently high unemployment rate.

More than one in 10 working-age people in Michigan are out of work and actively seeking jobs. Governor Snyder says one big problem is too few people with skills that match positions that are available in fields like welding and software design.

Sara Wurfel is the governor’s press secretary, and she says the governor believes employers will respond if workers pick up new, in-demand skills. 

“(The governor) believes the number one most-important recourse Michigan has is its talent, its people, and the skills and the background that they bring.”

The governor is expected to say the state and educators need to do a better job of identifying employment trends and the skills businesses will be looking for. Snyder’s predecessor, Governor Jennifer Granholm, also made job training a high priority.

Unemployed people in Michigan have a harder time getting jobless benefits than in other states in the Midwest. That’s according to a report from the Michigan League for Human Services.

The report also says Michigan pays the lowest maximum unemployment benefits in the region to people out of work.

Peter Raurk wrote the report for the Michigan League for Human Services.

“Giving unemployed families unemployment insurance benefits while they look for work helps to keep the economy going,” said Raurk.

Raurk says making sure unemployed people have access to jobless benefits helps stimulate the economy.   

When people suddenly do not have income, they’re not going to spend that income at local businesses. And places with very high unemployment often have businesses that experience difficulty because of less consumer spending.”

The report also says Michigan provides the fewest weeks of unemployment coverage in the region. Raurk says the Legislature should not approve proposals that would make it even more difficult for workers to get unemployment benefits.

The Michigan Public Radio Network's Rick Pluta reports, "the combination of a slight increase in jobs and a lot of people who quit looking for work led to Michigan's unemployment to drop by half a percentage point last month to 10.6 percent."

More from the Detroit Free Press:

Michigan’s unemployment rate is moving in the right direction again, dropping half a percentage point during October to 10.6%, the state’s Department of Technology, Management & Budget reported today.

But the state’s labor markets remain far from healthy. The jobless rate decline in October was due mainly to fewer unemployed people actively seeking employment, said Rick Waclawek, director of the Bureau of Labor Market Information and Strategic Initiatives. Such “discouraged” workers are no longer counted in the calculation of the unemployment rate.

Flickr bfishadow

Ohio's minimum wage will increase by 30 cents to $7.70 an hour at the start of 2012. Officials at the state Department of Commerce said Friday that the increase is part of a constitutional amendment voters approved in 2006, which says minimum wage will increase each year at the rate of inflation.

The $7.70 rate applies to workers 16 and older who don't get tips. The wage for tipped employees will be $3.85, a 15 cent increase.

The wage will be required from employers who gross more than $283,000 annually, up from the current $271,000.

Flickr/Jaymi Heimbuch

A job training center for people with disabilities starts its fall session on Monday. The Michigan Career and Technical Institute is in Plainwell, about 20 miles north of Kalamazoo.  It's the second largest program of its kind in the country.

Up to 350 students live on campus while taking classes. The institute offers 14 training programs to people with various disabilities.

Labor Day

Sep 5, 2011

I hope you are out on a boat listening to this. Or getting ready for a barbecue, or working in the garden, or doing something you feel like doing. Depending on the weather, I may be playing soccer with my Australian Shepherd right now.

He, by the way, will win easily. But while I hope you are relaxing, I hope even more that you have a job to go back to tomorrow. Far too many people don’t.

True, the unemployment rate is down from last year, but it is still over ten percent in Michigan, which is far too high. And there’s something that worries me more than the numbers.

And that’s the number of adults in the prime of life who have been unemployed for a long time -- six months or more. That’s the most on record, according to the Michigan League for Human Services, and they should know. They’ve been trying to help folks in difficult circumstances for almost a century.

The state says seasonally unadjusted unemployment rates increased in most regions of Michigan in July.

The figures released Thursday by the Department of Technology, Management and Budget show jobless rates increased in 14 of the state's 17 major regional labor markets compared to June. Statewide, the unadjusted jobless rate in July was 11.9 percent compared to 11 percent in June.

Rates ranged from a low of 7.8 percent in the Ann Arbor region to a high of 14.1 percent in the Detroit region. The state says the seasonal jobless rate increases were less than normal for July. Temporary summer layoffs in the auto industry were fewer than typical.

Thousands of people waited for hours just to get inside Wayne County Community College Tuesday, where employers were ready to take names and resumes.

The job fair was part of a nationwide tour hosted by the Congressional Black Caucus. It’s meant to draw attention to unemployment among African Americans.

Ep_jhu / Flickr

Job creation has been dragging for most of this year in the state and across the country. That helped push Michigan’s unemployment rate slightly higher to 10.5 percent in June.

There were 8,000 more unemployed people in Michigan last month – a total of 496,000 thousand people looking for work. The unemployment rate was inching downward as people found jobs in high-tech business services, health care, and manufacturing.

Bruce Weaver of the state Bureau of Labor Market Information says all that stalled in February.

“It appears that job levels have flattened out in the state and that’s across the board.”

The number of hours worked and payroll earnings also fell. The rate of unemployment and under-employment is 19.6 percent. That number counts part-timers who would like to work full-time, and former job seekers who got discouraged and quit looking.

MLHS

The Michigan League for Human Services (MLHS) released its "Economic Security Bulletin" today.

The report showed the unemployment rate dropping in 82 of Michigan's 83 counties when comparing the 1st quarter of 2010 with the 1st quarter of 2011 (Ontonagon was the only county that did not show a drop - going from 16.9% to 18.0%).

But despite the improvement in employment, the need for food assistance is rising.

Creative Commons/capl@washjeff.edu

The summertime blues have arrived for thousands of Michigan teenagers, who face a tough job market this year. That’s despite some improvement from last year.

Teens face a 30% unemployment rate this summer. That’s a 4 percentage point drop from 2010. A spokesman with the Michigan Department of Technology, Management & Budget says much of the improvement is because fewer teens are trying to find work this summer.

Thewmatt / Flickr

30% of Michigan teens hoping to find work this summer…won’t. That’s according to the Michigan Department of Technology, Management & Budget.

Bruce Weaver is an analyst for the state. He says the rate has actually declined from last year:

“ The unemployment rate for teens reached a thirty year high, in the summer of 2010.”

He says teens will have a tough time finding jobs because of the high unemployment numbers for adults:

Michigan’s new monthly jobless rate of 10-point-two percent signals the state continues to recover slowly from the recession. The new unemployment figure is a drop of one-tenth of a percentage point from March to April, and is a full three percentage points below where it was at this time last year.

There’s plenty of evidence that Michigan is in the early stages of a comeback, but job growth remains anemic. The state added just three thousand jobs from March to April.

One early, promising sign, though: so far this year people are no longer giving up their job searches and leaving the workforce. But, Bruce Weaver of the state Bureau of Labor Market Information and Strategic Initiatives says disgruntled ex-jobseekers aren’t resuming their search for work, either. When that happens, he says, that could signal growing faith that a recovery is underway.

“One of the first impacts you will often see is an increase in individuals entering the workforce, seeking jobs. There’s not any evidence in these numbers that’s happening yet in Michigan.”

And Michigan’s rate of under-employment, while edging downward, remains high. The combined rate of unemployment and under-employment is 20 percent.

User khalilshah / Flickr

The new national employment report shows the economy is churning out new jobs as people return to the workforce to compete for them.

Governor Rick Snyder says that’s good for Michigan as he tries to convince state lawmakers to adopt his jobs strategy.

Private sector employment is considered a strong indicator of the strength of the economy and, for the first time in a long time, private companies are hiring at a faster-than-expected rate.

Governor Snyder says that’s good news.

F. Olastuen / Flickr

Delta Air Lines is planning to offer "voluntary early retirements and buyouts" to its workers.

The reason? Rising jet fuel prices.

From the Associated Press:

Delta Air Lines Inc. says it will offer voluntary early retirements and buyouts to its employees because it must shrink to cope with high jet fuel prices.

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.

qmnonic / flickr

A new report says the need for food assistance in Michigan is still on the rise, even as unemployment declines.

Judy Putnam is with the Michigan League for Human Services, which conducts the quarterly economic report. She says money for food assistance comes from the federal government, and is money well spent.

“This is money that’s spent in local grocery stores, so it doesn’t go into a black hole, it actually goes into the local economies. It’s really considered one of the most effective economic stimulants that you can find. You get a lot of bang for the buck.”

Putnam says if the state eliminates the Earned Income Tax Credit for working poor families, that could create more need for food assistance in the coming years. 

(photo by Steve Carmody/Michigan Radio)

Today is Michigan’s Tax Freedom Day. It’s the day when the average Michigander will have earned enough money to pay their local, state and federal taxes for the year.  That’s three weeks earlier than it used to be mainly because people are earning less money because of the recession. 

Kail Padgitt is with the Tax Foundation, which produces the annual Tax Freedom Day list. He says Michigan’s local and state taxes are higher than most other states.

 “But when we look at federal taxes…Michigan actually paid  a little less in federal taxes due to the (state’s) high unemployment...leading to lower income taxes …federal income taxes.”

Padgitt says as the nation’s economy improves, special federal tax breaks expire and more Michiganders find work, Michigan’s tax freedom day will shift back to the end of April or maybe the beginning of May.

(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.

Lester Graham / Michigan Radio

It’s been a little over three months since Governor Rick Snyder came into office.

He’s had a few successes, including passing the controversial Emergency Financial Manager Bill. He’s also running into some opposition, even within his own party, especially around issues within his budget proposal.

Jennifer White asked Governor Rick Snyder to talk about the past 90 days and discuss where things go from here.

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