Michigan’s drop in unemployment from October to November was the largest one-month decrease since state unemployment rates started being tracked in January 1976.
The state’s unemployment rate dropped from 10.6 percent in October to 9.8 percent in November as the state added 21,000 jobs and the labor force decreased by 19,000. This marks the first time the state's unemployment rate has been below 10 percent since November 2008.
Figures are revised after year end and monthly changes can be adjusted, which may decrease the magnitude of the decrease.
James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy, said it was unclear what extent legislation passed in 2011 under the Snyder administration played in the drop.
“This decrease is like recovering from a hurricane,” Hohman said. “It’s that magnitude of improvement. But it is an improvement that is largely happening under the radar.”
Hohman said national figures will be released Friday and it is possible this may be the first time since January 2003 that Michigan is not among the worst five states in unemployment.
Louisiana's unemployment rate dropped five percentage points in one month when the unemployment rate fell from 11 percent to 6 percent in December 2005 as the region recovered from Hurricane Katrina.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.