The end of March saw a much revered unemployment rate for Michigan at 10.3 percent.
“Michigan’s labor market indicators have shown steady improvement in the first three months of 2011,” said Rick Waclawek, director of DELEG’s Bureau of Labor Market Information and Strategic Initiatives. “Compared to this time last year, the state’s jobless rate has fallen significantly while private sector payroll jobs have increased by 98,000 or 3.1 percent.”
Seasonally adjusted, 11,000 new jobs were created and the jobless rate went down by 7,000. Economists at the University of Michigan are now predicting that 2011 will bring a total of 64,600 jobs and another 61,500 in 2012.
CAR predicts a third of those jobs will be in the automotive industry. Roughly 60 percent of the the Big Three's employment is in Michigan.
The forecast looks, but it is only estimated for Michigan's current economic status. The short term of the auto industry depends on what happens in Japan in the wake of the tsunami, with many auto part factories being out of commission.
The long term for Michigan is not as predictable. “We’re going to need other areas than just automotive for new jobs,” CAR chief economist Sean McAlinden said.
Population decrease, aging citizens and lack encouragement for the unemployed are all factors in whether the upturn of employment will continue.
“The hard truth is that this period of outperformance in Michigan will prove to be short-lived,” Comerica Bank chief economist Dana Johnson said.