Mich. jobless rate rises for first time in months

Increase reflects recent COVID-19 restrictions

Michigan’s unemployment rate rose last month for the first time since the early days of the pandemic, highlighting the significant impact rising COVID-19 cases and restrictions on businesses are having on the state’s economy.

The state’s unemployment rate increased to 6.9% in November, up from 6.1% the month prior, according to data released Wednesday from the Michigan Department of Technology, Management and Budget. Last month’s jobless rate was revised up from 5.5% to 6.1%.

Meanwhile, metro Detroit, which includes Lapeer, Livingston, Macomb, Oakland, St. Clair and Wayne counties, continued to see higher unemployment rates compared with the rest of the state. The jobless rate in the region increased to 9.3% in November, up from 7% in October, the department said.

Michigan’s unemployment rate was about on par with the jobless rate nationally, which

dropped slightly to 6.7% in November.

Last month’s jobless rate reflects the beginning of a new set of restrictions on businesses aimed at curbing the spread of the coronavirus. Businesses such as movie theaters, bowling alleys and indoor dining at restaurants won’t be allowed to reopen until Dec. 20 at the earliest. Total employment in November declined by 14,000, while the number of unemployed rose by 43,000, the department said.

Still, the unemployment rate is much lower than it was in April, when it hit 24%, a record. Since April, the state has added 623,000 jobs, although the employment total in the state was still 438,000 below February’s pre-pandemic level last month.

Employment in all industries in Michigan is down year over year, with the leisure and hospitality industry taking the hardest hit. Employment in that industry dropped 33% compared to last November. Construction is one relative bright spot, with employment down just 0.1% compared to the same month last year, and employment up slightly compared to October.