GSC Web Admin
07-06-2009, 02:08 PM
Source: http://www.thedailynews.cc/ (http://www.thedailynews.cc/Main.asp?SectionID=2&SubSectionID=11&ArticleID=28302)
Ryan Jeltema
Assistant News Editor
A seasonal surge of people seeking summer jobs shoved Ionia County's unemployment rate higher, setting a new record for the second time in three months.
The county's May jobless rate stands at 14.8 percent, the highest ever since the U.S. Bureau of Labor Market Statistics began using its current method of calculating unemployment rates in 1990. The previous record was 14.4 percent in March.
Before that, the previous record was 18.6 percent in March 1985 but that figure cannot be compared equally to current statistics since it calculated with an outdated formula, according to Tom Krolik, an economist with the U.S. Department of Labor's Local Area Unemployment Statistics Office in Washington, D.C.
Montcalm County's rate is worse, registering 17.5 percent in May. That is the county's highest jobless rate since 1990.
"Really, this is a reflection of what's going on in the state, nationally and really the globe," said Jason Palmer, a regional analyst with the Michigan Department of Energy, Labor and Economic Growth (DELEG) in Grand Rapids. "We've been in a bad economic condition in Michigan for a while. When you add to it the state of the nationally economy that has added more pressure locally."
Statewide, unemployment rates increased in 59 of Michigan's 83 counties. The state's average unemployment rate leads the nation at 13.9 percent.
"Due to the ongoing weakness in the national economy, the tens of thousands of individuals who normally enter Michigan's labor market in May seeking seasonal employment found fewer opportunities." said Rick Waclawek, director of DELEG's Bureau of Labor Market Information & Strategic Initiatives. "Although many did obtain jobs, it was less than typically expected. This situation pushed unemployment rates upward in the southern part of the state."
But he attributes some of the increases in May to seasonal trends of employers creating summer jobs and more people looking for work. But not enough jobs were created to make up for the higher number of people seeking work or to employ the significant number of people who were unemployed already.
"This is one of those months when folks pour into the workforce so we have an increase in the number of people looking for work," Palmer said. "Add to that we already have a tight labor market and it makes for a tough situation."
He said employers still created jobs regionally but not enough to make up for the higher number of people looking for seasonal jobs this time of year.
"This is a strange month," Palmer said. "If you don't get the data you'd just see that unemployment is up. But will still created jobs. There are just more people looking for jobs than there were jobs created."
He said the seasonal increase in people seeking summer jobs usually lasts through June and July. The labor force generally tends to shrink again in late August and September as teens return to school and some people stop looking for work.
When that happens, Palmer said some people are able to find work replacing others who left steady jobs while some jobs disappear as the weather turns cooler. Some people who lose seasonal jobs also stop looking for work while other remain in the labor force seeking another job.
"It just depends on the dynamics between the employed and the unemployed," Palmer said.
Ryan Jeltema
Assistant News Editor
A seasonal surge of people seeking summer jobs shoved Ionia County's unemployment rate higher, setting a new record for the second time in three months.
The county's May jobless rate stands at 14.8 percent, the highest ever since the U.S. Bureau of Labor Market Statistics began using its current method of calculating unemployment rates in 1990. The previous record was 14.4 percent in March.
Before that, the previous record was 18.6 percent in March 1985 but that figure cannot be compared equally to current statistics since it calculated with an outdated formula, according to Tom Krolik, an economist with the U.S. Department of Labor's Local Area Unemployment Statistics Office in Washington, D.C.
Montcalm County's rate is worse, registering 17.5 percent in May. That is the county's highest jobless rate since 1990.
"Really, this is a reflection of what's going on in the state, nationally and really the globe," said Jason Palmer, a regional analyst with the Michigan Department of Energy, Labor and Economic Growth (DELEG) in Grand Rapids. "We've been in a bad economic condition in Michigan for a while. When you add to it the state of the nationally economy that has added more pressure locally."
Statewide, unemployment rates increased in 59 of Michigan's 83 counties. The state's average unemployment rate leads the nation at 13.9 percent.
"Due to the ongoing weakness in the national economy, the tens of thousands of individuals who normally enter Michigan's labor market in May seeking seasonal employment found fewer opportunities." said Rick Waclawek, director of DELEG's Bureau of Labor Market Information & Strategic Initiatives. "Although many did obtain jobs, it was less than typically expected. This situation pushed unemployment rates upward in the southern part of the state."
But he attributes some of the increases in May to seasonal trends of employers creating summer jobs and more people looking for work. But not enough jobs were created to make up for the higher number of people seeking work or to employ the significant number of people who were unemployed already.
"This is one of those months when folks pour into the workforce so we have an increase in the number of people looking for work," Palmer said. "Add to that we already have a tight labor market and it makes for a tough situation."
He said employers still created jobs regionally but not enough to make up for the higher number of people looking for seasonal jobs this time of year.
"This is a strange month," Palmer said. "If you don't get the data you'd just see that unemployment is up. But will still created jobs. There are just more people looking for jobs than there were jobs created."
He said the seasonal increase in people seeking summer jobs usually lasts through June and July. The labor force generally tends to shrink again in late August and September as teens return to school and some people stop looking for work.
When that happens, Palmer said some people are able to find work replacing others who left steady jobs while some jobs disappear as the weather turns cooler. Some people who lose seasonal jobs also stop looking for work while other remain in the labor force seeking another job.
"It just depends on the dynamics between the employed and the unemployed," Palmer said.