State unemployment numbers steady but above national rate for December

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Published: Jan. 19, 2023 at 3:51 PM EST
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LANSING, Mich. (WILX) - The Michigan Department of Technology, Management & Budget released a detailed breakdown of employment numbers for Dec. showing an increase in education and health services, and a decrease in leisure and hospitality jobs.

Michigan’s seasonally adjusted unemployment rate remained constant at 4.3 percent. Employment in the state edged down by 1,000, while unemployment was unchanged over the month, resulting in a workforce reduction of 1,000 during December.

“Michigan’s 2022 labor market continued to show improvement, with an annual jobless rate only 0.2 percentage points above the 2019 pre-pandemic annual rate,” said Wayne Rourke, labor market information director for the Michigan Center for Data and Analytics. “Annual payroll jobs also advanced notably over the year.”

The U.S. jobless rate receded by one-tenth of a percentage point between Nov. and Dec. to 3.5 percent. Michigan’s Dec. unemployment rate was eight-tenths of a percentage point above the national rate. Over the year, the U.S. unemployment rate fell by 0.4 percentage points, while Michigan’s rate was reduced by 0.8 percentage points since Dec. 2021.

Labor force trends and highlights

  • Michigan’s over-the-year unemployment reduction of 15.1 percent was 5.5 percentage points larger than the U.S. over-the-year unemployment decline of 9.6 percent.
  • The statewide quarterly jobless rate rose by 0.2 percentage points since the third quarter of 2022.
  • The Dec. statewide labor force participation rate remained unchanged over the month at 59.9 percent, while Michigan’s employment-population ratio edged down by one-tenth of a percentage point to 57.3 percent. Both Dec. 2022 measures remained below their Feb. 2020 values (61.1 percent and 58.8 percent, respectively).

Michigan’s 2022 preliminary annual average labor force data

Michigan’s preliminary annual average unemployment rate in 2022 was 4.3 percent, a notable reduction of 1.6 percentage points below the 2021 annual average rate of 5.9 percent. Total employment in Michigan averaged 4,641,000 in 2022, while total annual unemployment was 208,000. The state’s annual labor force level was 4,849,000 during 2022.

Annual average trends and highlights

  • Michigan’s annual jobless rate was reduced for the second consecutive year in 2022. The state’s 2022 rate was 5.7 percentage points below the 2020 pandemic annual rate of 10.0 percent.
  • Michigan’s 2022 annual jobless rate was two-tenths of a percentage point above the 2019 annual average pre-pandemic rate of 4.1 percent.
  • Annual average employment in the state rose by 145,000, or 3.2 percent, over the year, while the state’s average number of unemployed fell by 72,000, or 25.7 percent.
  • Michigan’s annual average workforce total in 2022 increased by 1.5 percent over the year.

Detroit metro area unemployment rate edges up in December

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) seasonally adjusted unemployment rate advanced by one-tenth of a percentage point to 3.7 percent over the month. The region’s workforce remained unchanged during Dec.

The Detroit MSA jobless rate fell by 1.6 percentage points over the year. Employment rose by 21,000, while unemployment was reduced by 35,000 since Dec. 2021.

Detroit MSA 2022 preliminary annual average labor force trends

The Detroit-Warren-Dearborn MSA’s preliminary annual average jobless rate in 2022 was 4.1 percent, 2.1 percentage points below the 2021 average jobless rate of 6.2 percent. The metro area annual jobless rate during 2022 was 0.2 percentage points below the statewide annual unemployment rate.

Michigan nonfarm jobs essentially unchanged over the month

According to the monthly survey of employers, Michigan seasonally adjusted payroll employment was nearly unchanged during Dec., edging up by 2,000, or 0.1 percent. The total nonfarm job count was 4,381,000, with minor employment changes occurring in multiple industries over the month.

Industry employment trends and highlights

  • Dec. marked the seventh consecutive month of nonfarm job gains in the state, with total payroll employment advancing by 64,000, or 1.5 percent, since May 2022.
  • Slight employment gains across multiple industries were partially offset by payroll job decreases in leisure and hospitality (-3,000); financial activities (-2,000); and trade, transportation, and utilities (-2,000).
  • Michigan’s education and health services sector demonstrated an employment increase for the third consecutive month, with payroll jobs advancing by 4,000 since Oct.
  • The largest over-the-year industry employment gains on a numerical basis occurred in the state’s education and health services (+21,000) and manufacturing (+15,000) sectors.
  • The monthly survey of employers indicated a preliminary 2022 annual average payroll job total of 4,343,000. This was 150,000, or 3.6 percent, above the 2021 average job level in Michigan.

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