Michigan Unemployment Falls Below Ten Percent
Largely due to the turnaround of its biggest industry, the US auto sector, the unemployment rate in Michigan has fallen below ten percent for the first time in three years. Figures released earlier in the week showed the state's jobless rate has fallen to 9.8 percent from 10.6 percent in October and 11.4 percent a year earlier. In fact, the last time less than ten percent of Michigan's residents were out of work was November 2008, before looming bankruptcies forced General Motors and Chrysler to seek taxpayer bailouts and all three of Detroit's big automakers slashed jobs by the thousands.
Over the last few years, unemployment has soared in Michigan, peaking at 14.1 percent in August and September of 2009. But this year, General Motors, Chrysler and Ford are all expected to record a yearly profit for the first time since 2004, and they have responded to growing sales by hiring more than 6,200 workers this year. And the rebound hasn't been limited to the auto industry, either, as the total manufacturing workforce in Michigan rose 21,000 this year, topping 500,000.
However, while the unemployment rate fell sharply in November, there were only 1,000 jobs created across the state during the month, and they were spread across multiple industries. The bigger cause of the lower jobless rate was unemployed relocating to search for greener pastures, retiring, or giving up the search for work. Still, with an actual gain of 59,000 jobs over the last twelve months, Michigan's job market definitely appears to be headed in the right direction, and will likely finish the year with a net gain in jobs for the first time since 2000.
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