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Michigan's Unemployment Rate Moves Down In MICHIGAN’S LABOR MARKET NEWS VOL. 77, NO. 4 JUNE 2021 Michigan Youth Labor Market Trends Feature Article pg. 16 Map of the Month: Over-the-Year Percent Change in the Unemployment Rate for Youth pg. 15 Data Spotlight: Michigan’s Population Through the Decades pg. 27 TABLE OF CONTENTS Michigan’s jobless rate edged down slightly in April, although Manufacturing 4 Michigan Employment and Unemployment Trends jobs moved downward due to auto production cuts caused by the nationwide 6 Michigan Job Trends by Industry Sector shortage of semiconductor microchips. 10 Regional Labor Market Analysis APRIL 2021 JOBLESS RATE 15 Map of the Month: Over-the-Year Change in the Unemployment Rate for Youth MICHIGAN 16 Feature Article: Michigan Youth Labor Market Trends 4.9% 23 Online Job Advertisements 25 Relevant Rankings NATIONAL 27 Data Spotlight: Michigan’s Population Through 6.1% the Decades HAILEY BARRUS SHIBANI PUTATUNDA BRUCE WEAVER DESIGNER CONTRIBUTOR CONTRIBUTOR Communications Representative Economic Specialist Economic Manager [email protected] [email protected] [email protected] JIM BIRNEY TRISHA SCHLEGEL CONTRIBUTOR CONTRIBUTOR Economic Analyst Economic Analyst [email protected] [email protected] WAYNE ROURKE ASHLEY TARVER EDITOR CONTRIBUTOR Associate Director Demographic Analyst [email protected] [email protected] IT’S BIGGER THAN DATA. The Bureau of Labor Market Information and Strategic Initiatives is your one-stop shop for information and analysis on Michigan’s population, labor market, and more. ● Our Federal-State Programs division runs the state’s cooperative agreements with the U.S. Bureau of Labor Statistics and the U.S. Census Bureau, making us the official source for this information. ● Our Research and Analytics division conducts workforce research and program evaluation, giving you the insight you need to make smarter decisions. Michigan’s jobless rate registered 4.9 percent in April, marking a continued decline in 2021. The state’s labor force, total employment, and payroll job counts were little changed over the month. Compared to the peak of the pandemic in April 2020, the state’s labor market situation has markedly improved but has yet to return to pre-pandemic levels. Payroll jobs have climbed almost 717,000 over the year but still remain roughly 340,000 below February 2020, suggesting that a number of individuals remain sidelined in the current Michigan labor market. This month’s issue of Michigan’s Labor Market News highlights labor market developments for teens and young adults. Our Feature Article covers trends in youth population, labor force status, education, industries, and occupations. The Map of the Month illustrates how youth unemployment rates have changed nationally between 2019 and 2020, while the Relevant Rankings section compares Michigan’s youth to other states. Finally, our Data Spotlight this month discusses results from the 2020 Census and how and why Michigan’s population has changed in each decade. We hope you enjoy this issue of Michigan’s Labor Market News. Please let us know if there is something you would like to know more about. SCOTT POWELL DIRECTOR Bureau of Labor Market Information and Strategic Initiatives [email protected] MICHIGAN’S UNEMPLOYMENT RATE MOVES DOWN IN APRIL Michigan’s seasonally adjusted jobless rate Since April 2020, levels of employment and with pre-pandemic economic indicators. This can declined in April by two-tenths of a percentage unemployment change in Michigan and be done by contrasting the current April 2021 point to 4.9 percent. Total employment in the the U.S. appear substantial because of the Michigan workforce status to the state’s February state inched up by 6,000 while unemployment unprecedented level of pandemic-related 2020 labor market data, which reflects the month edged down by 8,000, resulting in a small workforce disruption in April 2020. Michigan just prior to the pandemic. monthly workforce reduction of 2,000. The employment levels rebounded by 27.6 percent Michigan jobless rate has now decreased for over this period, about double the percent What this reveals is that despite marked four consecutive months. employment gain nationally. Statewide improvement over the past year, Michigan’s unemployment levels fell by 78.7 percent since current labor market indicators still lag well The national jobless rate of 6.1 percent in April 2020 while the U.S. unemployment total behind pre-pandemic levels. Total employment April remained well above the Michigan rate dropped by 57.5 percent. Michigan’s labor force in April 2020 was still a significant 274,000, or (+1.2 percentage points). The U.S. rate fell rose by 2.5 percent over the year, an increase 5.8 percent, below the February 2020 level. by 8.7 percentage points since April 2020 comparable to the U.S. gain. The number of unemployed in Michigan during while Michigan’s rate dropped sharply by 18.7 April was 47,000, or 25.4 percent, higher than percentage points. These large over-the-year the pre-pandemic count. Additionally, there has rate cuts reflected the recalls of workers since Michigan April Labor Market in been significant labor force withdrawal due to the the peak of COVID-19 pandemic-related layoffs Comparison with Pre-Pandemic pandemic, as the state workforce has plunged in April 2020. Indicators by 227,000, or 4.6 percent, since February 2020. These trends have pushed the current Michigan Total employment in Michigan was nearly April 2020 was the height of COVID-19 unemployment rate 1.2 percentage points above unchanged over the month, edging up by 0.1 pandemic-related layoffs in Michigan. As a result, the February 2020 rate. percent. This change was similar to the national changes in labor market data since April 2020 employment trend in April. Unemployment in partially illustrate the degree of recovery attained the state inched down by 3.3 percent over since the peak of pandemic-related layoffs. the month, while the national number of However, it is also important to evaluate how SHIBANI PUTATUNDA unemployed rose by 1.1 percent. the state’s current employment status compares Economic Specialist 4 | STATE OF MICHIGAN | DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET | BUREAU OF LABOR MARKET INFORMATION AND STRATEGIC INITIATIVES MICHIGAN LABOR FORCE ESTIMATES, APRIL 2021 (SEASONALLY ADJUSTED) OVER THE MONTH OVER THE YEAR APRIL MARCH APRIL 2021 2021 2020 NUMERIC PERCENT NUMERIC PERCENT Civilian Labor Force 4,701,000 4,703,000 4,586,000 -2,000 0.0% 115,000 2.5% Employed 4,470,000 4,464,000 3,502,000 6,000 0.1% 968,000 27.6% Unemployed 231,000 239,000 1,084,000 -8,000 -3.3% -853,000 -78.7% Unemployment Rate 4.9 5.1 23.6 -0.2 XXX -18.7 XXX Source: Local Area Unemployment Statistics, Bureau of Labor Market Information and Strategic Initiatives, Department of Technology, Management & Budget MICHIGAN UNEMPLOYMENT RATE, FEBRUARY 2020–APRIL 2021 (PERCENT) 25 20 15 10 4.9 5 3.7 0 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Source: Local Area Unemployment Statistics, Bureau of Labor Market Information and Strategic Initiatives, Department of Technology, Management & Budget MICHIGAN PAYROLL EMPLOYMENT, FEBRUARY 2020–APRIL 2021 5,000,000 4,452,900 4,500,000 4,114,400 4,000,000 3,500,000 3,000,000 2,500,000 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Source: Local Area Unemployment Statistics, Bureau of Labor Market Information and Strategic Initiatives, Department of Technology, Management & Budget JUNE 2021 | MICHIGAN'S LABOR MARKET NEWS | 5 MICHIGAN JOB TRENDS BY INDUSTRY SECTOR Monthly Overview government. The largest nonfarm job gains drop in April 2021. Construction is Michigan’s compared to year-ago levels were in Leisure second closest industry to recovery, as April April Michigan payroll jobs fell by 19,200 and hospitality (+147,600 jobs or 76.3 percent), employment climbed to within 2,300 jobs of (-0.5 percent) over the month. This is the first followed closely by Manufacturing (+146,800 its 10 year peak employment of 177,900 in monthly drop of payroll employment in 2021 jobs or 35.3 percent). February 2020. Remarkably, this industry’s and comes after three months of employment employment level shrank nearly 40 percent in gains. Nationally, jobs climbed by 266,000 (+0.2 the early months of the pandemic, second only percent) in April. How Many Jobs are Needed in to Leisure and hospitality’s 55.6 percent loss. Each Industry to Get Back to Manufacturing led all industries with the greatest Pre-Pandemic Levels? It is no surprise that while Leisure and monthly decline of 11,200 jobs. This was mainly hospitality had recovered the most jobs after due to cuts in the state’s automotive sector In April 2021, Michigan total payroll employment massive initial losses during the pandemic, it because of production cuts and layoffs resulting remained 7.6 percent or 338,500 jobs below still remained the furthest from February 2020 from a nationwide semiconductor shortage. pre-pandemic levels. However while all major levels. This industry’s April 2021 job loss was its Other sectors with notable job losses in April industries also remained below their pre- first employment decline since December 2020 included Leisure and hospitality (-5,600) and pandemic February 2020 employment levels, and it brought the total number of additional jobs Education and health services (-3,900). some are much closer to employing as many workers as they had prior to the job reduction needed to reach its pre-pandemic employment level to just under 95,000.
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