Michigan jobless rate lowest in 14 years

Michigan's unemployment rate fell below 6% for the first time in 14 years as the resurgent auto industry, a nascent construction pickup and strong private sector activity fueled growth.

The unemployment rate toppled to 5.9% in February, down from 6.3% the previous month and 7.8% in February 2014.

Analysts reported across-the-board growth in the private sector, with a slight drop in government positions, the only general area that reported a decrease in jobs over the last year.

"I haven't seen the state stronger in a decade," said Albert Berriz, CEO of the Ann Arbor-based real estate firm McKinley, in an interview. "It probably harkens back to the late '90s because it really has been that long since we've seen this across-the-board hiring."

Gov. Rick Snyder boasted that the state had added 400,000 private-sector jobs since 2010, when he was elected, best among Midwest states.

"We should be proud that our hard work in reinventing Michigan is showing results, with companies tapping our talent and legendary work ethic as they create more and better jobs," Snyder said in a statement. "We're working to lead the nation in developing the skilled trades, creating an environment for businesses to grow and thrive and building on the entrepreneurial spirit that is known around the globe."

While the jobs growth is good news, both the state's current labor force and total employment levels remain 300,000 below the levels posted in October 2001. But the most recent numbers have been upbeat.

The state's economy gained ground on the national economy in February. The U.S. unemployment rate for the month was 5.5%.

A diversity of growth is defining the job market's turnaround. The professional and business services segment -- a broad gauge of the private sector -- added 33,000 jobs over the last year.

Manufacturers added 20,000 jobs during the same period, while construction companies added 12,000, education and health services employers added 8,000, and leisure and hospitality companies added 8,000.

"You can say what you want about economies, but you've got nothing if you don't have jobs. It's not like one sector -- it's across the board," McKinley's Berriz said.

McKinley has a few dozen job openings, he said.

"Five years ago we didn't have any -- and now we're constantly looking," Berriz said.

Wages ticked upward in the manufacturing sector, which indicates that some employers are gradually raising pay as the job market tightens.

There are 281,000 people in Michigan who are looking for a job but can't find one -- the economic definition of unemployed. That's down 24% from 369,000 a year ago.

The labor force gained 7,000 jobs during that stretch, an indication that job seekers are getting more optimistic about their prospects.

In metro Detroit, the economy is gaining steam, too. The region's unemployment rate fell to 6.8% in February, down from 7.4% in January and 9.3% in February 2014.

Contact John Gallagher: 313-222-5173 or gallagher@freepress.com. Follow him on Twitter @jgallagherfreep.





Job growth

This table shows job growth in individual sectors of the Michigan economy from February 2014 to February 2015:

Professional and business services: 33,000

Manufacturing: 20,000

Construction: 12,000

Trade, transportation and utilities: 9,000

Education and health services: 8,000

Leisure and hospitality services: 8,000

Other services: 1,000

Information: 0

Natural resources and mining: 0

Government: -3,000