Michigan’s jobs picture remained stable in May as the unemployment rate rose slightly to 5.1%.
The increase of one-tenth of a percentage point from April to May is the first discernible movement in the jobless rate in quite a while, said Michigan Bureau of Labor Market Information Director Wayne Rourke. But it is a “low-fire low-hire” jobs market right now as workers are largely staying put in their current positions.
“It’s been pretty flat for six months or so at 5%, but at 5.1% it’s the same as it was last year,” he said. “So the unemployment rate’s hit a time of stability in the last year or two where it hasn't moved outside of that 5% range for a long time.”
He said the jobs numbers right now are driven more by demographics than large-scale hiring or layoffs.
“The labor force of the prime age workers and the younger workers is actually steady or going up,” he said. “But the older population, those 65-plus has actually driven the labor force down, the participation down, as those people leave the labor market.”
Rourke said demand for new hires is expected to grow, but a big question is whether Michigan will have trained and educated workers qualified to take those positions.
Michigan’s May unemployment rate is higher than the national rate, which stands at 4.5%.
