Michigan jobless rate declined in April to 6.9 percent

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By Tiffany Griffin

LANSING, Mich. (AP) — Michigan's seasonally adjusted unemployment rate declined in April, but not because the state had more jobs.

The state said Wednesday the jobless rate was 6.9 percent last month. That's down from the March rate of 7.2 percent, which was the nation's highest.

But the underlying news isn't good.

The rate dropped mainly because Michigan's civilian labor force is shrinking and included about 15,000 fewer people overall last month than in March. About 2,000 fewer people were employed last month.

The state had 7,000 fewer construction jobs in April than it had in March, according to payroll employment estimates. Rick Waclawek, director of the state's Bureau of Labor Market Information and Strategic Initiatives, said in a statement that is a "relatively large reduction."

Manufacturing jobs continued to be lost in Michigan. There were 11,000 fewer manufacturing jobs reported in April in part because of ongoing labor disputes involving auto companies. The state has 53,000 fewer manufacturing jobs than a year ago.

Michigan also had 2,000 fewer jobs in retail trade and 2,000 fewer jobs in leisure and hospitality services last month.

The total number of seasonally adjusted payroll jobs in Michigan fell by about 19,000, to just less than 4.2 million.

Michigan reported job gains in government and professional and business services. Each of those segments picked up 3,000 jobs in April.

The national unemployment rate for April was 5 percent.

Michigan has had the nation's highest jobless rate for much of the past few years. Some economists say the jobless rate could go higher later this year.

In a preliminary report released this week, the nonpartisan House Fiscal Agency estimates the unemployment rate could be about 7.6 percent overall this year and could reach 8.4 percent in 2009.

The national unemployment rate also is expected to rise into 2009.

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On the Net:

Michigan Department of Labor and Economic Growth: http://www.michigan.gov/dleg

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