Michigan’s employment numbers continue to head in the wrong direction

Michigan’s employment numbers headed in the wrong direction in August, marking the third consecutive month for a state that suffered a net job loss even while 32 states reported an increase in employment.

Michigan lost 2,200 jobs during August, according to the state Department of Technology, Management & Budget. The Michigan labor force was down by 7,200.

Since January, Michigan has had the second-worst performance in the nation, losing 12,000 jobs. Employment in 29 states increased, however. Idaho gained the most jobs.

“Michigan’s labor market is trending down at a time when the country is adding jobs,” said James Hohman, director of fiscal policy at the Mackinac Center for Public Policy. “Lawmakers ought to care a lot more about improving Michigan’s business climate because the state has been falling behind,” he added.

The state’s employment picture has been declining since May, Hohman told Michigan Capitol Confidential. The number of employed people declined by 28,302, or 0.6%. The only other state that has fared worse is Minnesota.

Michigan suffered an 11,200 job loss since June, the fifth-worst record in the nation.

It is easy to be confused when some news stories report unemployment numbers while others focus on jobless numbers. The two measures are different, and according to the Economic Policy Institute, the unemployment rate understates the weakness of job opportunities.

There are a large number of what the institute calls “missing workers.” These people are not employed or actively seeking a job. “In other words, these are people who would be either working or looking for work if job opportunities were significantly stronger,” the institute said.

The institute states because of this distinction, jobless workers are only counted as unemployed if they are actively seeking work.