DETROIT – The second quarter of 2016 set a new high in employment in Southeast Michigan dating back nearly a decade to 2007 to the beginning of the recession, reports the Workforce Intelligence Network for Southeast Michigan, a 16-county partnership region.
With employment expanding by 1.4 percent, some 35,000 jobs were added from April through June, pushing the total number of jobs held in the region to 2.62 million. Nearly 20,000 previously unemployed individuals gained jobs in the region in the second quarter 2016, along with more than 15,000 new workers (for a total of 35,000 new jobs), bringing the unemployment rate down to 4.5 percent, a low not experienced in Southeast Michigan since 2001.
“High job demand earlier this year resulted in substantial employment growth in the second quarter,” said Lisa Katz, Executive Director, WIN. “As it stands today, even more workers are needed to meet the increasing needs of area employers.”
The second quarter is typically a time when employment begins an annual surge that continues through the end of the year. With substantial job gains seen between the first and second quarters in the region, 2016 is expected to follow this typical cyclical trend.
Highlights of the second quarter report cited by Colby Spencer-Cesaro, senior director of research & strategy, include:
The 2.62 million jobs in the region represents 56.5 percent of the state’s overall employment.
The labor force expanded considerably in in the first quarter. Many of the workers who joined the labor force could not find work causing unemployment to increase. But, during the second quarter the labor force expanded less rapidly than employment, just 0.6 percent growth with 15,640 joining the ranks of job seekers.
Because of slow labor force growth and strong hiring, 20,000 of those 35,000 new jobs likely went to individuals unemployed during the first quarter this year. This is positive for workers because it shows that joining the labor force will pay off and they will gain employment.
Looking ahead to the the third quarter report – for the period July through September – postings have never been higher. Not every county is experiencing record employer demand, but the region as a whole is clearly seeing an uptick in the need for workers. This also is a positive sign.
Online job ads and employment changes are positively correlated. When one goes up, so does the other. With postings increasing to yet another record high, WIN projects that employment will follow suit as 2016 moves forward into 2017.
Despite a notable high in employment and a decrease in unemployment, the gap between employment growth and labor force growth continues to produce hiring challenges for employers in the 16-county region including Genesee, Hillsdale, Huron, Jackson, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, Sanilac, Shiawassee, St. Clair, Tuscola, Washtenaw and Wayne counties. With a smaller labor force, employers have fewer options when hiring, making it more difficult to find the ideal candidate, Spencer-Cesaro said.
Job postings expanded in several occupation groups including Construction (3.5 percent), IT (3.8 percent), and Transportation Distribution and Logistics (TDL) (16 percent), primarily. Heavy and tractor-trailer truck drivers once again top the demand lists with historic posting levels in TDL occupations.
The top in-demand jobs in Q2 2016 overall included:
- Heavy and tractor-trailer truck drivers: 7,473 job postings
- Registered nurses: 6,324 job postings
- Software developers, applications: 5,899 job postings
- Sales representatives, wholesale and manufacturing (except technical and scientific products): 5,020 job postings
- Retail salespersons: 3,951 job postings
- Managers, all other: 3,382 job postings
The average wage advertised in postings during Q2 2016 were as follows:
- Agriculture: $46,622
- Business and finance: $62,970
- Construction: $48,552
- Customer Service: $56,641 (although most postings listed wages below $35,000)
- Education: $31,660
- Energy: $65,873
- Health care: $60,094
- IT: $86,462
- Skilled trades and technicians: $36,593 (although most postings listed wages below $35,000
- TDL: $65,239
The full Q2 2016 labor market report can be viewed at: http://www.win-semich.org/data-research/quarterly-reports/.
The Workforce Intelligence Network for Southeast Michigan is a collaborative effort between six Michigan Works! Agencies (MWAs), ten community colleges, and numerous other organizations. The WIN partnership aims to create a comprehensive and cohesive workforce development system in southeast Michigan that provides employers with the talent they need for success.
For more information, click on http://opportunitydetroit.com/
