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Michigan, Detroit see unemployment spike in July

While the nation is seeing an improved economy, Michigan's has been stagnant since April.
While the nation is seeing an improved economy, Michigan's has been stagnant since April.Photo by Justin Sullivan/Getty Images

The Michigan unemployment rate spiked for the second time this year, jumping from 7.5 percent to 7.7 percent.

The Department of Technology, Management and Budget released its monthly report on Wednesday, detailing July's numbers and signaling the increase in unemployment. The report blamed the increase on losing 7,000 more jobs for the month than were created.

The increase in the unemployment rate is Michigan's second spike in three months. A similar spike happened in May before the unemployment rate dropped slightly in June. The state's jobless numbers are well lower than July of 2013, when they hit 9.0 percent, but they're still far higher than the national average of 6.2 percent. That difference between Michigan's unemployment and the national average is also growing wider, increasing from 1.1 percent last July to 1.5 percent currently, according to the United States Department of Labor.

Metro Detroit also saw a large spike in unemployment and the rate in the area is still far higher than the state as a whole. The Detroit-Warren-Livonia Metropolitan Statistical Area saw unemployment rise by 0.3 percent in July, to 8.7 percent. That is the highest that Metro Detroit's unemployment has been in 2014 and has seen a steady rise for the past three months.

While unemployment in Michigan has been a persistent problem since 2008, there are some signs of improvement, especially with payroll jobs.

“The state's jobless rate has remained around the mid-seven percent range throughout most of 2014,” Jason Palmer, the director of the Bureau of Labor Market Information and Strategic Initiatives said in a press release. “However, Michigan payroll jobs have recorded strong gains over the last three months, and now show a solid 1.4 percent growth rate over the year.”

To view the complete report from the Department of Technology, Management and Budget, click here.