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Michigan Jobs Commission Reports Jobless Rate Edges Down in June

15 July 1998

Michigan Jobs Commission Reports Jobless Rate Edges Down in June

                 June Estimates Not Impacted by Labor Dispute

    LANSING, Mich., July 15 -- Michigan's labor force situation
was largely unchanged in June, edging down slightly, according to estimates
released today by the Michigan Jobs Commission.  The seasonally adjusted state
jobless rate fell by one-tenth of a point to 3.6 percent.
    The strikes at General Motors had no noticeable impact on the state's
labor statistics for June.  This is because:

    - Workers directly involved in labor disputes are considered employed.
    - Labor statistics reflect the week including the 12th day of each month,
and the substantial strike-related layoffs recorded in June occurred after
this reference week.

    "These estimates indicate that the underlying condition of Michigan's job
market was positive in June," said Doug Rothwell, CEO and Department Director
of the Michigan Jobs Commission.  "However, as June progressed, the impact of
the General Motors strike was evident in significant layoff activity and
reductions in auto-related production."

    Second Quarter Improvement in Joblessness
    Levels of employment and unemployment were relatively unchanged in June.
Employment rose slightly, increasing by 3,000 to 4,854,000.  The number of
unemployed fell by 8,000 to 180,000.  Slightly less entry than usual of
workers into the job market caused a 6,000 drop in the state labor force to
5,033,000.
    The jobless rate in the second quarter of 1998 was 3.6 percent, which is
the lowest quarterly jobless rate in Michigan since at least 1970.  It
represents a healthy decline from the 4.0 percent unemployment rate recorded
in the first quarter of 1998.
    "Business conditions remained very strong in the second quarter of the
year, which was reflected in the record low jobless rate for the quarter,"
said Rothwell.
    Michigan's unemployment rate in June was substantially below the national
rate of 4.5 percent.  This is the 39th consecutive month Michigan's rate has
been below the national average, and the 52nd month since January 1994 in
which Michigan's rate has been at or below the U.S. rate.

    Industry Jobs Increase Slightly in June
    According to the monthly survey of employers, seasonally adjusted industry
employment recorded a slight 2,000 gain in June to total 4,543,000.
Government employment rose 3,000, and the construction and service industries
each added 2,000 jobs.  These gains were offset by employment losses in
manufacturing (-4,000) and retail trade (-2,000).
    Over the past year, however, industry job growth has been substantial.
Industry employment has jumped by 100,000 since June 1997, with 60,000 of the
additional jobs produced in the service and retail trade industries.
    Motor Vehicle Industry

    Average weekly earnings   $992.62  $1034.69  $1018.60    -$42.07   -$25.98
    Average weekly hours         41.9      43.2      46.9       -1.3      -5.0