First-time jobless claims increase 80% over prior week

The number of Michiganders that filed their initial claims for unemployment increased by 80% last week.

According to updated unemployment numbers released by the U.S. Department of Labor on Thursday, the number of first-time Michigan jobless claims increased from 6,036 the previous week to 11,129 last week, an increase of 4,823 initial claims. That’s the third-largest week-over week increase in initial claims (Louisiana and California).

As of Aug. 28, a total of 71,577 Michgianders were filing continuing claims for unemployment, a decrease of 11,071 over the prior week.

Michigan’s July unemployment rate stood at 4.8%, a decrease of 0.2% from June, according to the U.S. Bureau of Labor Statistics.

Data compiled by DTMB and released Thursday shows metro Detroit is home to nearly 1.7 million jobs and is projected to have almost 209,000 job openings every year through 2028. Of those projected openings, at least 52,300 will typically require a postsecondary certification, an associate degree or apprenticeship.

Within the state’s new set of employment projec

tions, data shows several long-term trends that will impact the Detroit region and Michigan labor market. Among them are an aging population that will continue to spur demand for jobs in health care industries and occupations, the continued use of online shopping that will drive changes in the distribution of retail-related jobs, and an increase in careers that require postsecondary training or education.

Statewide data projections show Michigan’s population is expected to grow by 3.6 percent through 2028. This population growth, however, is expected to be combined with a sharp 28 percent increase in people age 65 and older. Largely because the number of residents approaching

retirement age is expected to outpace the count of new residents in the state, the Michigan labor force is expected to contract by 0.2 percent through 2028.

Although Michigan saw a large increase in the number of first-time job claims filed, the story was much different from a nationwide perspective.

Nationwide, the number of Americans seeking unemployment benefits fell last week to 310,000, a pandemic low and a sign that the surge in COVID-19 cases caused by the delta variant has yet to lead to widespread layoffs.

The U.S. Labor Department report shows that jobless claims dropped from a revised total of 345,000 the week before. And at their current pace, weekly applications for benefits are edging toward their prepandemic figure of roughly 225,000.

In August, the U.S. unemployment rate fell to 5.2 percent, the lowest rate in 18 months. The August Jobs Report, released Sept. 3, showed an average of 750,000 jobs being added per month between June and August.

President Biden said Thursday that the pandemic low of 310,000 firsttime jobless claims filed in encouraging news for American families who have found a new opportunity and “a little bit of breathing room” as the country continues to build back from last year’s economic devastation.

“Despite the impact of the Delta variant…what we’re seeing is an economic recovery that is durable and strong,” said Biden. “America is on the move again. This is the kind of growth that makes our economy stronger and consistent progress, and not boom or bust. Our economy grew

the first half of this year at the fastest rate in about 40 years. We’re the only developed country in the world whose economy is now bigger than it was before the pandemic.”

In July, non-seasonally adjusted unemployment rates fell in 15 of Michigan’s 17 major labor market areas with the unemployment rate decreasing in 77 of Michigan’s 83 counties, according to the Michigan Department of Technology, Management, and Budget (DTMB). Unemployment rate declines ranged from 1 to 7.1 percentage points, with a median decrease of 2.5 percentage points.

Since July 2020, unemployment rates have receded in all 17 Michigan labor market areas, according to DTMB. Total employment moved up over the year in all 17 regions, with a median increase of 1.6 percent. The largest overthe-year employment gain was observed in the Detroit metro region.

Although July 2021 unemployment rates were down across all 83 Michigan counties when compared to July 2020, regional jobless rates remained above July 2019 levels. Fourteen Michigan labor market areas registered unemployment gains since July 2019, with a median increase of 0.8 percentage points.

“Michigan’s regional labor markets continued to remain steady over the month,” said Wayne Rourke, associate director of the Bureau of Labor Market Information and Strategic Initiatives. “July was characterized by minimal changes in private payroll job levels, seasonal job reductions in local schools, and modest declines in unemployment rates in most major Michigan regions.”