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Unemployment rises in Michigan, but so does the number of employed workers


UNDATED (WKZO) -- Unemployment in the state of Michigan rose again in July according to state statisticians from 8.7 to 8.8%. They say the numbers rose despite the creation of about 21-thousand new jobs, because more people entered the labor force than job makers could absorb.

State Statistician Michael Williams described the numbers as “relatively flat”. Labor economist George Erickcek says the jobless number has risen all summer, as college graduates and the long-term unemployed jumped back into the labor pool.

He says right now the only industry producing jobs in the state is the Auto Industry. He says for every manufacturing job created, it spins off 1.5 jobs in the service sector to support those jobs. He says that accounts for just about every job the state has created in the last year.

He says we have come about half-way back from the job losses suffered during the Great Recession, and at the pace we are going, it will be a long time before the gap is erased.