Michigan – Against national job growth patterns, Michigan’s employment landscape has seen a declining tendency in what now appears to be a growing concern for state’s economy. With August marking the third straight month of job losses in the state, a troubling trend highlighting more fundamental economic difficulties.
Recent statistics from the Michigan Department of Technology, Management & Budget indicates that the state lost around 2,200 jobs just in August. This drop fits a larger trend of economic crisis as the Michigan labor force dropped 7,200 people over the same time span. Michigan ranks as the second-worst state in the country for employment performance over this period as it has recorded a net loss of 12,000 jobs since the start of the year.
While Michigan suffers, other states have witnessed significant increases, therefore highlighting a different economic situation throughout the nation. For example, Idaho became a leader in job creation, therefore substantially raising its employment count.
James Hohman, the director of fiscal policy at the Mackinac Center for Public Policy, expressed concern over Michigan’s lagging job market.
“Michigan’s labor market is trending down at a time when the country is adding jobs,” Hohman said as reported by Michigan Capitol Confidential. He emphasized the necessity for legislative action to enhance Michigan’s business climate, which he believes is crucial for reversing the current employment slump.
Since May, the state’s employment problems have been getting worse; 28,302, or 0.6 percent, less people are working now. In terms of bad employment market performance, Michigan now ranks just ahead of Minnesota thanks to this downturn.
With an 11,200 job decline since June, Michigan boasts the fifth-worst record in the country over this period. This sharp drop in employment is a result of a more general problem involving the great number of “missing workers,” people who neither actively seek nor are employed because of inadequate job possibilities.
The Economic Policy Institute clarifies this matter by pointing out that the unemployment rate sometimes does not adequately reflect the lack of job prospects. This underreporting results from those who ceased seeking employment of discouragement not being included in the official unemployment numbers.
The difference between joblessness and unemployment becomes ever more important as Michigan keeps having these employment difficulties. The state’s economic experts and legislators are advised to take quick action to address these problems in order to avoid long-term economic stagnation and to realign with the encouraging employment trends seen elsewhere.