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Michigan unemployment rate rises for 1st time in year

July 21, 2013
	<p>June 2012 &#8211; June 2013</p>

June 2012 – June 2013

It’s been a rough month for Michigan.

Just one day before the city of Detroit declared bankruptcy, prompting a visit from Gov. Rick Snyder, new unemployment figures from June revealed the first increase in 12 months. However, determining whether this spells disaster or redemption for the state depends on whom you ask.

June’s seasonally adjusted unemployment rate stood at 8.7 percent, an increase of three-tenths of a percent from May, but more than half a percent lower than June 2012, according to a report from the Michigan Department of Technology, Management and Budget, or DTMB.

Phil Gardner, the director of the Collegiate Employment Research Institute, or CERI, said month-to-month changes don’t necessarily say much about the health of Michigan’s economy. He added that while the numbers are less than ideal, it may not signal impending doom for college graduates entering the workforce.

“There are a lot of factors, but there is no earth-shattering crisis in the state,” Gardner said.

While there may not be enough jobs for each graduate within Michigan, Gardner hopes the next few years will be kind to young adults seeking a career within the mitten.

MSU economics professor Stacy Dickert-Conlin said renewed hope amongst the unemployed might be responsible for the increased numbers.

“Unemployment can rise just because more persons are looking for work who were not looking for work before,” Conlin said. “This could be because discouraged workers who had quit looking for work are now more optimistic and looking to re-enter the labor force, or June might be a time that students enter the market looking for work,” she concluded.

With a decrease in government jobs and a growing economy, Kurt Weiss, the public information director of DTMB, said these new figures are not a concern.

“This is the kind of movement we’d anticipate, the economy is slowly growing,” Weiss said.

Pointing to an increase in manufacturing jobs throughout the state, as well as a renewed effort to attract businesses, Michigan has a bright economic future, Weiss said.

Although he admits Michigan has been above the national unemployment rate for some time — 7.6 percent as of June — Weiss sees the numbers as an indication that more Michiganians are on the prowl for employment. But Robert McCann, communications director for the Michigan Senate Democrats, disagrees, stating he was frustrated that Michigan’s unemployment figures are on the rise while the national average has declined.

“We’re ultimately concerned,” McCann said. “The governor’s policies have not worked.”

Even with an increase in manufacturing jobs and the bump provided by the auto industry bailout, McCann said the key to fixing Michigan’s economy involves education and keeping college graduates in-state.

“Employers are looking for educated people, and the state is failing to invest in students,” he said. “Many students are forced to leave the state to find the first available job after graduation to pay off their student loan debt.”

Journalism senior Lacee Shepard, like many students, said she is concerned about landing a job in her chosen field here in Michigan.

“I do worry about finding a job because there aren’t a lot of openings for journalists, especially in this state,” Shepard said.

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