Published April 13, 2005
LANSING (AP) — Michigan’s seasonally adjusted unemployment rate dropped to 6.9 percent in March, marking its lowest rate in nearly a year, the state said yesterday.
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But even with the improvement, Michigan — which has had one of the nation’s highest unemployment rates for months — still lags behind the national unemployment rate of 5.2 percent in March. And there were signs of weakness in the monthly report, including another loss of manufacturing jobs.
Economists caution not to read too much into one month’s numbers. The state’s jobless rate has danced between 6.7 percent and 7.5 percent for the past two years, with the March rate coming near the lower end.
“We really need to see several months of data to indicate a trend,” said Bruce Weaver, an analyst with the Michigan Department of Labor and Economic Growth. “The change (in the rate) is a positive indicator, but it’s just one month of data.”
The March rate was the lowest since April 2004, when Michigan’s unemployment rate was 6.7 percent. The state’s jobless rate was 7.1 percent in March 2004.
Michigan’s jobless rate was 7.4 percent in February, according to revised figures released yesterday. Total employment increased by 17,000 people last month, and there were 28,000 fewer unemployed.
But a monthly survey of employers was not as positive. The payroll jobs survey, which does not include farm jobs or the self-employed, indicated a loss of 17,000 jobs in March. About 6,000 of the lost jobs were in manufacturing, mostly due to short-term layoffs in the auto industry.
The state has lost 20,000 manufacturing jobs since March 2004, according to the survey.
While Michigan’s economy has diversified in recent years, the state still is largely tied to manufacturing.
“If you’re heavily into a declining sector, it won’t be easy no matter who is in political office,” said Charles Ballard, a Michigan State University economist. “Manufacturing has been declining for decades.”
Other employment sectors have remained stable in the past year, including construction, finance, education, health services and tourism.
