Michigan Unemployment Rate Decreases in January
Michigan’s seasonally adjusted jobless rate decreased by two-tenths of a percentage point to 4.9 during January, according to data released Thursday by the Michigan Department of Technology, Management and Budget.
Officials say as the result of the annual revision process, Michigan’s Dec. 2021 rate was revised downward by half a percentage point to 5.1%.
Additionally, they say the state’s employment level in Jan. moved up by 19,000, while the number of unemployed decreased by 11,000.
“Michigan’s unemployment rate declined significantly from 10.0 percent in 2020 to 5.9 percent in 2021,” said Wayne Rourke, associate director of the Bureau of Labor Market Information and Strategic Initiatives (LMISI). “This was the third largest rate drop among states in 2021, as Michigan workers returned to jobs following pandemic-related layoffs.”
Moreover, Michigan’s jobless rate was almost a full percentage point above the national average of 4.0% in Jan.
In the United States overall, the unemployment rate fell by 2.4 percentage points since Jan., while the statewide rate dropped by 1.5 percentage points over the period.
Workforce in Michigan was nearly unchanged in Jan., edging up by 7,000 or 0.1%. In comparison, the U.S. labor force increased by 0.9% over the month.
Total employment in Michigan advanced over the year by 113,000 or 2.5%, an increase of over half of that recorded nationally (+4.8%).
Michigan’s January 2022 rate of 4.9% remained 1.1 percentage points above the Feb. 2020 pre-pandemic rate of 3.8%.
According to the Michigan Department of Technology, Management and Budget, the state’s annual average jobless rate in 2021 of 5.9% fell 4.1 percentage points below the 2020 average. They say the decline in the rate over the year reflected recalls of workers since massive pandemic-related layoffs in mid-2020.
Additionally, they say the average employment in Michigan rose by 134,000 (3.1%) during 2021. Furthermore, the number of Michigan unemployed decreased by over 200,000 in 2021, but remained 77,000 (37.9%) above the 2019 annual average unemployment level.
On the other hand, the monthly survey of employers recorded a total nonfarm job gain of 11,000 (0.3%) in Jan., resulting in an employment total of 4,300,000.
Job changes in some industries were minor over the month, and the largest over-the-month job addition occurred in leisure and hospitality (+6,000).
Furthermore, total payroll jobs increased by 217,000 (5.3%) over the year.
However, nonfarm employment remained at 153,000 (3.4%) below the Feb. 2020 pre-pandemic level.
Jobs in Michigan’s professional and business sector changed slightly in Jan., but officials say they have rebounded by 5.2% over the past year.
The largest over-the-year employment gain happened in Michigan’s leisure and hospitality industry (+118,000) as workers returned to work in the restaurant industry.
However, leisure and hospitality jobs remain over 36,000 below pre-pandemic levels.
For a full report of Michigan unemployment rates, click here.