By Kathy Barks Hoffman
Associated Press
LANSING (AP) -- Michigan's unemployment rate dropped steeply in December, decreasing to its lowest rate in nearly two years, state officials said Wednesday.
The seasonally adjusted 11.7 percent rate for December was the lowest since January 2009, when it was 11.3 percent. But while 5,000 more people were working, the state's labor force dropped by 37,000 as discouraged job applicants quit looking for work, according to the state Department of Energy, Labor and Economic Growth.
Michigan's annual unemployment rate for 2010 was 13.1 percent, compared with 13.6 percent for 2009. It's the first decline in the state's annual jobless rate since 2005.
"Overall in 2010, Michigan's labor market stabilized after one of the worst labor market years on record in 2009," said Rick Waclawek, director of DELEG's Bureau of Labor Market Information and Strategic Initiatives. He noted that employment levels in Michigan have been flat since the summer.
Michigan's most recent rate was down considerably from November, when it was 12.4 percent. The national unemployment rate for December was 9.4 percent, down from 9.8 percent.
The state's labor force dropped by 57,000 during 2010, or 1.2 percent, while long-term unemployment rose. The number of individuals out of work for 27 weeks or more increased from 41 percent of all unemployed in 2009 to about 50 percent in 2010. While workers were jobless for an average of 30 weeks in 2009, they were jobless for an average of 40 weeks in 2010.
Leisure and hospitality services gained 3,000 jobs in December, but manufacturing lost 3,000 jobs, the same number lost in trade, transportation and utilities.
Over the course of 2010, the biggest employment loss was in government, which saw 15,000 jobs disappear. Michigan also lost 5,000 jobs in financial activities, 3,000 in information, 2,000 in construction and 1,000 in trade, transportation and utilities during the year. Professional and business services also lost 1,000 jobs.
During that period, Michigan gained 11,000 manufacturing jobs. Natural resources and mining, education and health services and other services each gained 1,000 jobs.
Published: Fri, Jan 21, 2011
