First it was the credit crunch, then the ailing auto industry and now the fallout is settling in.

"A lot of people that were hiring or excepting applications simply aren't," said Douglas Stites of Capital Area Michigan Works.

The Michigan Department of Labor & Economic Growth says the unemployment rate jumped to a staggering 9.3 percent in October, its highest rate since 1992; a symptom they say of the national economy.

"The rest of the country is finally starting to influence and impact the overall financial climate, and that is now rolling into Michigan where before it was pretty much an auto industry type of situation, now we're seeing the rest of the economy starting to get some of the pressure from the financial markets," said Rick Waclawek of the Michigan Department of Labor & Economic Growth.

Waclawek says Michigan's work force has fallen by nearly 1.5 percent compared to this time last year, he says the slump in retail jobs is particularly unusual around the holidays.

"Right now that still is a very depressed sector, we just don't see the hiring that would normally take place during this time of year," Waclawek said.

And the numbers don't lie the parking lot is packed at the Capital Area Michigan Works and officials say the latest unemployment numbers could be just the tip of the iceberg.

" I think it's probably going to get worse before it gets better, this is not going to be a quick thing of a couple months, I think this is likely to go on for a while," said Doug Stites of Capital Area Michigan Works.

Stites says jobs slashed in the manufacturing industry are slowly sucking the life out of other sectors that were once strong.

"IT, healthcare, that's being driven by this credit conversation that's going on nationally, the segments of the economy that were so strong, so vibrant, it's really really effected them," Stites said.