September Jobless Rates Were Stable in Southwest Michigan Labor Markets

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1 Southwest Michigan 201 N. Washington Sq., 5 th Floor Lansing MI Phone: Bureau of Labor Market Information and Strategic Initiatives (LMISI) Jobless s Were Stable in Southwest Michigan Labor Markets Three typical factors occurred in, with opposing effects on the labor market, leaving unemployment rates in Southwest Michigan virtually unchanged from August levels: 1) the withdrawal of students and other seasonal workers from the labor force; 2) the recall, by private and public schools, of support staff that were laid off temporarily over the summer; and 3) the reduction of employment in summer-related activities such as leisure and hospitality. Regional Jobless s Remained Virtually Flat over the Month but Dropped Significantly over the Year Jobless rates inched up or down by just one tenth of a percentage point or remained unchanged in all four regional metropolitan areas (see Table 1). The same trend was recorded in the unemployment rates of local non-metro counties, fluctuating between -0.2 and +0.2 percentage points from August levels (Table 2). rates also remained stable in the two local Prosperity Regions of Southwest (Region 8) and Southeast (Region 9) (Table 3). All twelve local counties recorded lower jobless rates in than the unadjusted statewide rate of 6.7 percent. Also, the unemployment rates were lower than the nation s unadjusted rate of 5.7 percent in six local labor markets (Figure 2). Over the year in, jobless rates fell in all local metro and non-metro labor markets by an average of -1.9 and -2.0 percentage points, respectively. Figure 2: Jobless s for Southwest Michigan Counties Source: Bureau of Labor Market Information and Strategic Initiatives

2 Labor Force Levels Were Generally Down over the Month but Substantially Up over the Year The civilian labor force was down in three of the four southwest metropolitan statistical areas as a result of youth and other seasonal workers withdrawing from the labor market: -1,500 in Niles-Benton Harbor; -1,200 in Jackson; and -800 in Battle Creek. Kalamazoo s workforce edged up 100 as colleges and universities started hiring students for the new academic year (Table 1). Workforce levels also reduced generally in non-metro labor markets of Southwest Michigan, ranging from -25 in Hillsdale to -750 in Allegan. Labor force was down by -575 in St. Joseph County, while rising in Lenawee County (+425) (Table 2). Over the year, all local labor markets gained substantial workforce, extending in metro areas from +400 and +500 in Jackson and Niles-Benton Harbor to +1,100 in Battle Creek and +3,800 in Kalamazoo- Portage. Year-to-year labor force gains in non-metro southwest counties ranged from +150 in Hillsdale to +2,050 in Allegan. Barry and St. Joseph counties also recorded considerable workforce gains (+1,250 and +1,100, respectively). Household Employment Inched Down in Most Local Labor Markets over the Month but Escalated over the Year Household (or place of residence) employment slightly declined in throughout most of the Southwest Michigan labor markets, mostly due to seasonal job cuts in summer-related activities (e.g., leisure and hospitality). The metropolitan areas of Niles-Benton Harbor, Jackson, and Battle Creek lost employment (-1,300, -1,200, and - 800, respectively), while jobs in the Kalamazoo MSA were flat, edging up 100. Non-metro counties in Southwest Michigan also lost jobs in, with the exception of Lenawee, where employment rose by 375 (or +0.9%). Employment was flat in Hillsdale (up slightly by +25). Job reductions in southwest non-metro counties extended from -150 in Barry to -600 in Allegan. St. Joseph County also slashed 550 positions Over the year in, employment soared in Southwest Michigan anywhere between +2.5% in Jackson to +6.2% in St. Joseph County. Larger metro areas recorded greater numerical changes as expected: Kalamazoo (+6,200), Niles-Benton Harbor (+2,300), Battle Creek (+2,000), and Jackson (+1,600). However, some non-metro areas showed relatively great job expansion year to year: Allegan (+2,875 or +5.6%), St. Joseph (+1,650 or +6.2%), and Barry (+1,600 or +5.8%). Page 2 Figure 3: Percent Employment in Southwest Michigan Counties Over the year Over the month Nation Michigan St. Joseph Lenawee Hillsdale Cass Branch Barry Allegan Berrien Van Buren Kalamazoo Jackson Calhoun Source: Labor Market Information and Strategic Initiatives

3 Current jobless rates for regional metro areas improved in two of four southwest metropolitan areas over the 2005 rates: Battle Creek (-0.6) and Niles-Benton Harbor (-0.1). rates were still above the 2005 levels in Kalamazoo (+0.4) and Jackson (+0.2) metro areas. Jobless rates for local metro Author: Dr. Leonidas Murembya, State Coordinator of Regional Economic Research Figure 4: Local Metro Area s Since 2005 Year Areas Benton Harbor Battle Creek Gd. Rapids Jackson Kalamazoo areas remained relatively stable between 2005 and 2007 but started rising in 2008 following the national housing market collapse. From 2007 to 2010, unemployment rates for all four local metro areas soared by an average of 4.3 percentage points. However, from 2010 to date, jobless rates in all four regional metro areas have dropped by an average of -5.0 percentage points, although at lower levels of labor force. Figure 5: Comparing the Trend of Local MSAs s Since s Benton Harbor Jackson Kalamazoo Battle Creek Gd. Rapids Years Source: Labor Market Information and Strategic Initiatives Page 3

4 Nonfarm Payroll Jobs Were Stable in in All Regional Metro Areas In, all four regional metro areas recorded modest gains in nonfarm payroll employment, ranging from +100 in Jackson to +4,200 in Kalamazoo, mostly due to seasonal job gains in education. Figure 6: Sectors with Payroll Job (August - ) Battle Creek MSA Leisure and Hospitality Trade, Transportation, Manufacturing Total Nonfarm Professional & Busin Government -4.0% -2.1% 0.8% 0.9% 1.7% 7.3% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Source: Labor Market Information and Strategic Initiatives The Battle Creek MSA (Calhoun County) gained 500 nonfarm payroll jobs in to a total of 59,000. Employment in private service providing industries reduced (-300), but jobs in the public sector increased (+700), mostly from seasonal recalls of support staff in Education. A 200-job cut each was recorded in Trade, transportation, and warehousing, and Leisure and hospitality. Manufacturing employment edged up 100. Over the year, Manufacturing added 700 positions to the area s workforce, with a gain of 500 in Transportation equipment manufacturing alone. Employment in all other sectors was virtually flat year to year in, inching up or down mostly by 100. Total payroll jobs in Battle Creek were 500 above the 2013 level. Mining & Construction Leisure and Hospitalit Trade, Transportation, Total Nonfarm Educational and Health Manufacturing Professional and Busin Government Figure 7: Sectors with Payroll Job (August - ) Jackson MSA -5.6% -2.0% -1.7% 0.2% 1.0% 1.1% 2.5% 2.6% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% Source: Labor Market Information and Strategic Initiatives Total nonfarm payroll jobs in the Jackson MSA (Jackson County) remained flat in, slightly rising by 100 to 54,600. The gain of 200 jobs in local Education was exactly offset by employment loss in Trade, transportation, and warehousing. Manufacturing employment edged up 100. Over the year, goods producing sectors created 200 new positions, but employment in serviceproviding industries was cut by 400. Manufacturing recorded a year-to-year job growth of 300; and the Page 4

5 sectors of Trade, transportation, and warehousing and of Other private services (auto repair, personal care, etc.) each created 100 new positions. However, private Education and health services and Government cut 200 jobs each. Current total nonfarm payroll jobs in Jackson were very similar to the 2013 levels, inching down by 100. Leisure and Hospitalit Financial Activities Manufacturing Educational and Health Mining & Construction Professional and Busin Total Nonfarm Government Figure 8: Sectors with Payroll Job (August - ) Kalamazoo MSA -1.8% -1.2% -0.5% 0.9% 1.9% 1.9% 3.1% 21.8% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Source: Labor Market Information and Strategic Initiatives The Kalamazoo-Portage MSA (Kalamazoo and Van Buren counties) added 4,200 nonfarm payroll positions to the area s workforce in, primarily due to seasonal job gains in local and state Education (+1,500 and +2,600, respectively). Other sectors that recorded employment advancement include Professional and business services (+300) and private Educational services (+200). However, Accommodation and food services cut 400 jobs, while employment in Manufacturing was down 100. Over the year, most sectors showed positive job growth, with the exception of Retail trade which lost 300 positions. Leisure and hospitality added 500 new jobs, and employment in Construction and Manufacturing advanced by 400 each. The gain of 700 jobs in Government, year to year, could be the result of data collection timing. Total payroll jobs in Kalamazoo were 2,100 (or +1.5 percent) above 2013 levels. Figure 9: Sectors with Payroll Job (August - ) Niles-Benton Harbor MSA Leisure and Hospitalit Trade, Transportation, Total Nonfarm Government Professional and Busin Educational and Health -7.2% -1.8% 0.5% 2.4% 5.0% 7.1% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Source: Labor Market Information and Strategic Initiatives Nonfarm payroll jobs in the Niles-Benton Harbor MSA (Berrien County) rose slightly by 300 in to 61,500. A 600-job gain in the private Educational and health services sector was exactly offset by an employment cut in Leisure and hospitality. And, employment in Trade, transportation and warehousing reduced by 200 in. However, jobs in Professional and business services Page 5

6 improved by 300 and local Public education added 200 positions, mostly through a recall of support staff. Over the year, employment improved in Leisure and hospitality (+700), Trade, transportation, and warehousing (+200), Professional and business services (+200), and Manufacturing (+100). However, jobs in Education and health services edged down 200. The 400-job cut over the year in Government could be attributed to timing in the collection of data between the two years. Total nonfarm payroll jobs in Benton Harbor were 600 (or +1.0 percent) above the 2013 level. Note: Data in this release is not seasonally adjusted. As a result, employment and unemployment trends outlined in this release for may differ from previously released Michigan seasonally adjusted data. FOR MORE INFORMATION, please contact the Regional Contact, Dr. Leonidas Murembya, in Lansing at 517/ , or visit our website at Page 6

7 Table 1: Southwest Michigan Metropolitan Statistical Areas Labor Force Estimates Area Data Sept. '14 Aug. '14 Sept. '13 Numeric Percent Numeric Percent Niles-Benton Harbor Labor Force 72,500 74,000 72,000-1, % % MSA (Berrien County) Employed 68,200 69,500 65,900-1, % 2, % Unemployed 4,400 4,500 6, % -1, % Battle Creek MSA Labor Force 65,700 66,500 64, % 1, % (Calhoun County) Employed 62,000 62,800 60, % 2, % Unemployed 3,700 3,700 4, % % Jackson MSA Labor Force 70,100 71,300 69,700-1, % % (Jackson County) Employed 65,600 66,800 64,000-1, % 1, % Unemployed 4,500 4,500 5, % -1, % Kalamazoo-Portage MSA Labor Force 163, , , % 3, % Employed 155, , , % 6, % Unemployed 8,900 8,900 11, % -2, % Kalamazoo Labor Force 128, , , % 3, % County Employed 121, , , % 4, % Unemployed 6,825 6,800 8, % -1, % Van Buren Labor Force 35,375 35,400 34, % % County Employed 33,300 33,275 31, % 1, % Unemployed 2,100 2,125 2, % % Grand Rapids-Wyoming Labor Force 414, , ,800-2, % 16, % MSA Employed 395, , ,800-2, % 21, % Unemployed 19,500 19,900 25, % -5, % Source: Bureau of Labor Market Information and Strategic Initiatives Page 7

8 Table 2: Southwest Michigan Non-Metro Counties Labor Force Estimates Area Data Sept. '14 Aug. '14 Sept. '13 Numeric Percent Numeric Percent Allegan Labor Force 57,000 57,750 54, % 2, % Employed 54,275 54,875 51, % 2, % Unemployed 2,725 2,875 3, % % Barry Labor Force 30,725 30,900 29, % 1, % Employed 29,275 29,425 27, % 1, % Unemployed 1,450 1,475 1, % % Branch Labor Force 19,675 19,925 19, % % Employed 18,525 18,750 17, % % Unemployed 1,150 1,150 1, % % Cass Labor Force 25,475 25,625 25, % % Employed 24,125 24,325 23, % % Unemployed 1,350 1,300 1, % % Hillsdale Labor Force 19,425 19,450 19, % % Employed 18,175 18,150 17, % % Unemployed 1,250 1,275 1, % % Lenawee Labor Force 44,925 44,500 44, % % Employed 42,075 41,700 40, % 1, % Unemployed 2,825 2,800 3, % % St. Joseph Labor Force 29,775 30,350 28, % 1, % Employed 28,250 28,800 26, % 1, % Unemployed 1,525 1,550 2, % % Source: Bureau of Labor Market Information and Strategic Initiatives Page 8

9 Table 3: Prosperity Regions Labor Force Estimates Area Data Sept. '14 Aug. '14 Sept. '13 Numeric Percent Numeric Percent 8 - Southwest Prosperity Region Labor Force 377, , ,950-3, % 7, % (Berrien, Branch, Calhoun, Cass, Employed 356, , ,500-3, % 13, % Kalamazoo, St. Joseph, Unemployed 21,050 21,125 27, % -6, % Van Buren counties) Southeast Prosperity Region Labor Force 481, , ,875-1, % 4, % (Hillsdale, Jackson, Lenawee, Employed 454, , ,775-2, % 10, % Livingston, Monroe, Unemployed 27,125 26,900 33, % -6, % Washtenaw counties) Source: Bureau of Labor Market Information and Strategic Initiatives Page 9

10 Table 4: Southwest Michigan MSAs Payroll Employment - Battle Creek MSA August 2013 % % Total Nonfarm 59,000 58,500 58, % % Mining, Logging, and Construction 1,900 1,900 1, % % Manufacturing 12,500 12,400 11, % % Trade, Transportation, 9,200 9,400 9, % 0 0.0% Financial Activities 1,400 1,400 1, % % Professional and Business 6,100 6,000 6, % % Educational and Health 10,300 10,300 10, % % Leisure and Hospitality 4,800 5,000 4, % % Other Services 2,200 2,200 2, % 0 0.0% Government 10,300 9,600 10, % % Jackson MSA August 2013 % % Total Nonfarm 54,600 54,500 54, % % Mining, Logging, and Construction 1,700 1,800 1, % 0 0.0% Manufacturing 9,500 9,400 9, % % Trade, Transportation, Utilities 11,500 11,700 11, % % Information % 0 0.0% Financial Activities 1,900 1,900 1, % 0 0.0% Professional and Business 4,100 4,000 4, % 0 0.0% Educational and Health 9,800 9,700 10, % % Leisure and Hospitality 5,000 5,100 5, % % Other Services 2,800 2,800 2, % % Government 8,000 7,800 8, % % Kalamazoo MSA August 2013 % % Total Nonfarm 141, , ,300 4, % 2, % Mining, Logging, and Construction 5,300 5,200 4, % % Manufacturing 19,900 20,000 19, % % Trade, Transportation, Utilities 24,000 24,000 24, % 0 0.0% Information 1,000 1, % % Financial Activities 8,000 8,100 8, % % Professional and Business 15,700 15,400 15, % 0 0.0% Educational and Health 22,300 22,100 22, % % Leisure and Hospitality 16,400 16,700 15, % % Other Services 5,900 5,900 5, % % Government 22,900 18,800 22,200 4, % % Niles-Benton Harbor MSA August 2013 % % Total Nonfarm 61,800 61,500 61, % % Mining, Logging, and Construction 1,900 1,900 1, % 0 0.0% Manufacturing 12,500 12,500 12, % % Trade, Transportation, Utilities 10,800 11,000 10, % % Information % 0 0.0% Financial Activities 2,300 2,300 2, % 0 0.0% Professional and Business 6,300 6,000 6, % % Educational and Health 9,000 8,400 9, % % Leisure and Hospitality 7,700 8,300 7, % % Other Services 2,300 2,300 2, % 0 0.0% Government 8,500 8,300 8, % % Page 10

11 Table 5: Southwest Michigan Works! Agencies Local Area Employment Data January February March April May June July August October November December Ann Avg Branch-Calhoun- Kalamazoo-St. Joseph Labor force 234, , , , , , , , , ,775 Employment 218, , , , , , , , , ,625 Unemployed 15,200 16,475 15,875 13,900 15,025 16,075 17,475 13,200 13,225 15, Branch Labor force 19,150 19,425 19,550 19,600 19,950 20,275 20,075 19,925 19,675 19,725 Employment 17,625 17,800 18,025 18,300 18,600 18,850 18,550 18,750 18,525 18,350 Unemployed 1,525 1,625 1,500 1,275 1,350 1,425 1,525 1,150 1,150 1, Calhoun Labor force 64,100 65,125 65,200 65,250 66,475 66,925 66,975 66,500 65,750 65,825 Employment 59,775 60,325 60,675 61,350 62,300 62,450 62,000 62,850 62,050 61,525 Unemployed 4,325 4,800 4,525 3,900 4,200 4,475 4,975 3,675 3,700 4, Kalamazoo Labor force 122, , , , , , , , , ,850 Employment 115, , , , , , , , , ,150 Unemployed 7,375 8,125 7,975 7,075 7,775 8,325 8,925 6,800 6,825 7, St. Joseph Labor force 28,425 28,650 28,850 29,175 29,600 29,950 29,700 30,350 29,775 29,375 Employment 26,450 26,700 26,975 27,550 27,900 28,125 27,625 28,800 28,250 27,600 Unemployed 1,950 1,950 1,875 1,625 1,700 1,825 2,050 1,550 1,525 1, Berrien-Cass-Van Buren Labor force 129, , , , , , , , , ,375 Employment 118, , , , , , , , , ,525 Unemployed 11,075 11,875 11,200 9,100 9,250 9,950 10,525 7,900 7,825 9, Berrien Labor force 69,700 70,700 71,100 71,700 73,300 74,700 74,900 74,000 72,500 72,500 Employment 64,000 64,500 65,200 66,800 68,000 69,200 69,000 69,500 68,200 67,200 Unemployed 5,700 6,200 5,900 4,900 5,300 5,500 5,900 4,500 4,400 5, Cass Labor force 25,325 25,450 25,500 25,325 25,375 25,825 25,425 25,625 25,475 25,475 Employment 23,250 23,350 23,500 23,825 23,875 24,125 23,600 24,325 24,125 23,775 Unemployed 2,100 2,100 2,000 1,500 1,500 1,725 1,825 1,300 1,350 1, Van Buren Labor force 34,750 35,425 35,550 35,300 35,325 35,725 35,600 35,400 35,375 35,375 Employment 31,475 31,875 32,200 32,650 32,825 33,025 32,800 33,275 33,300 32,600 Unemployed 3,275 3,550 3,350 2,650 2,500 2,700 2,800 2,125 2,100 2, South Central Michigan Labor force 132, , , , , , , , , ,900 Employment 121, , , , , , , , , ,600 Unemployed 10,750 11,550 11,075 9,825 10,100 10,550 11,625 8,600 8,575 10, Hillsdale Labor force 18,775 19,100 19,100 19,125 19,425 19,950 19,675 19,450 19,425 19,325 Employment 17,125 17,300 17,400 17,675 17,925 18,325 17,900 18,150 18,175 17,775 Unemployed 1,650 1,800 1,700 1,425 1,500 1,625 1,750 1,275 1,250 1, Jackson Labor force 69,500 70,400 70,700 70,600 71,300 71,700 71,900 71,300 70,100 70,800 Employment 64,000 64,400 64,900 65,600 66,100 66,200 66,000 66,800 65,600 65,500 Unemployed 5,500 6,000 5,800 5,100 5,200 5,500 6,000 4,500 4,500 5, Lenawee Labor force 44,100 44,800 44,925 44,725 44,800 45,100 44,600 44,500 44,925 44,725 Employment 40,575 41,075 41,325 41,375 41,425 41,700 40,725 41,700 42,075 41,325 Unemployed 3,525 3,725 3,600 3,350 3,375 3,425 3,900 2,800 2,825 3,

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