State Rankings: Two Years Post-Recession
Since the end of the last recession in June 2009, job growth rates across the nation continue to be sluggish. Of the 50 states and District of Columbia, 19 have decreased employment, 13 have recorded less than 1 percent job expansion, and 19 have experienced gains of between 1 and 7 percent.
Some industry sectors have shown strength across the nation, while others are still declining in most states. Michigan’s strength compared to other states over this period is in the industries of Construction, Manufacturing, and Professional and Business Services. This is no surprise since these same industries experienced the greatest job losses over the 18-month recession. Michigan’s growth rate was ranked near the top in all of the goods producing industries, while its ranking was mixed in the service producing industries with the notable exception of Professional and Business Services.
North Dakota’s job growth rate attained the top national rank in 5 different industries as well as for total nonfarm jobs. Nevada’s rate of job loss was the worst nationally and this state placed among the bottom two states in 5 industry sectors.
The following tables show the job change rankings by broad industry for Michigan, as compared to all fifty states and the District of Columbia. The information is based on unadjusted employment from June 2009 through June 2011. All data is published by the Bureau of Labor Statistics, Current Employment Statistics program.
Total Nonfarm Employment
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In the two years since the end of the recession, Michigan’s payroll employment has risen by 2.5 percent (97,700 jobs). This ranks Michigan’s growth rate 4th nationally behind only North Dakota, Alaska and Texas. Since North Dakota and Alaska are small states in terms of employment size, their large percentage growth doesn’t add a substantial number of jobs. Their employment gains combined are less than a third of Michigan’s 97,700 jobs increase. Only Texas and New York have added more jobs than Michigan in the last two years.
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Mining and Logging
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A majority of States added jobs in the Mining and Logging sector since the recession. Michigan’s job growth rate of 12.7 percent was far outpaced by the top 3 states, but it is similar to the national growth of 14.6 percent. This is Michigan’s smallest industry, but employment has made steady progress in the last two years returning it to prerecession levels.
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Construction
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Michigan is one of only four states that show job gains in Construction since June 2009. Michigan’s expansion is concentrated in specialty trade contractors, while the building construction sector continues to shed jobs, due to a poor housing market. The states that suffered the most from the housing collapse continue to show the sharpest cuts in construction jobs.
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Manufacturing
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Michigan ranks first in the nation in the rate of job growth in the Manufacturing sector since June 2009, more than twice as fast as the second-ranked state of Indiana. This growth stems from the resurgence of the auto industry after the bankruptcy of GM and Chrysler in mid-2009. The year 2010 is the first year Michigan gained jobs in Manufacturing since 1999. Less than 20 other states have added jobs in this sector since June 2009.
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Trade, Transportation, and Utilities
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Michigan ranks in the latter half of states in this industry as it continued to lose jobs through 2009 and 2010. While Michigan’s transportation and warehousing industry has grown by 3.8 percent since June 2009, the 1.3 percent job loss in the retail sector has slowed recovery. Most states (including D.C.) have seen little or no growth in this industry, as 42 of them have registered job change between 1 percent and -1 percent.
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Information
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Only 7 states have shown positive growth in this sector since June 2009. Michigan ranks in the bottom half of states, slightly below the national pace of job loss of -4.0 percent. There were 17 other states that also lost over 6 percent of jobs in this sector during this time.
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Financial Activities
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Michigan’s employment change ranks near the middle of the 50 states in Financial Activities. Most of Michigan’s losses since June 2009 were concentrated in the banking and insurance industries. Only six states recorded positive employment growth in this industry from June 2009 to June 2011. The real estate rental and leasing industry substantially contributed to the gains in North Dakota and the loss in Nevada.
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Professional and Business Services
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Positive job growth was recorded in this industry in 46 states (including D.C.). Michigan’s high ranking in Professional and Business Services is due to the close ties with the recently expanding Manufacturing sector. The hiring of engineers, consultants, management, and temporary workers by firms in this industry relate in many cases with auto sector business. While Michigan ranks fifth in percent growth in this industry, the 57,200 Michigan jobs gained lag only California and Texas.
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Education and Health
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Education and Health Services is another industry that has shown broad growth across the nation. Only three states recorded minimal job losses over the past two years. Twelve states (including D.C.) recorded greater than 5 percent growth. Education and Health Services was Michigan’s only broad industry to add jobs during the 18-month recession.
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Leisure and Hospitality
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Four out of five states have gained jobs since June 2009 in this industry, although Michigan was not among them. Most of Michigan’s job decline in this sector over the last two years was between 2009 and 2010. Since June 2010, Michigan jobs in the Leisure and Hospitality industry have edged down only 0.3 percent. A majority of the growth from the top three states of Delaware, New Hampshire, and Alaska stem from progress made in the accommodation and food services industry.
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Other Services
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Michigan’s essentially flat employment performance in this sector places it in the top half of states. While most states have lost jobs in Other Services since June 2009, the national growth rate was +1.3 percent. Michigan did not begin recovering in this industry until mid-2010. Since June 2010, jobs in Michigan’s Other Services industry have increased by 1.8 percent.
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Government
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Michigan’s job losses in the public sector rank it near the bottom nationally. 12 other states also recorded job cuts greater than -3.5 percent since June 2009. Nationally, government jobs fell 2.3 percent, and only 14 states (including D.C.) had positive growth. The majority of Michigan’s job declines in this sector occurred in local government
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