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Commentary
11:03 am
Thu May 17, 2012

Commentary: Falling unemployement rates

There are people who lose their jobs during the best of times, and those who are wildly successful even during a depression.

But what really matters is the overall trend. When you look at that, and at a flurry of new numbers that came out yesterday, it seems clear that Michigan is in fact doing better than a year ago.

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Economy
10:46 am
Mon May 14, 2012

Employers having trouble filling IT jobs in Michigan

Credit Detroit Venture Partners, LLC / YouTube
Seeking qualified technology workers in Detroit.

New technology jobs are coming to Detroit.

Quicken Loans founder and chairman Dan Gilbert has been buying buildings and looking for technology tenants as part of a business he co-founded with Earvin "Magic" Johnson, and  Brian Hermelin called Detroit Venture Partners LLC.

In a promotional video, Detroit Ventures Partners say their goal is to transform Detroit.

"This is our time to turn a crumbled city into a new beacon of hope."

But the self-proclaimed "creative business builders" and "street-fighters" are having a tough time finding talent in Michigan.

The Detroit News reports today Quicken Loans and other tech companies are looking to fill positions with people from out of state.

Online mortgage company Quicken Loans Inc., looking to fill more than 300 information technology positions, has taken its search outside Michigan to find qualified candidates. The Detroit-based company recently launched a website aimed at recruiting laid-off Yahoo workers.

GalaxE.Solutions, a project management firm known for its "Outsource to Detroit" banner on its Woodward Avenue building, has stumbled trying to fill 500 IT jobs.

"There is a shortage nationwide of good IT talent," said Ryan Hoyle, director of global recruiting for GalaxE, which has 150 IT workers in Detroit and hopes to add 350 in the next few years. "There just aren't a lot of top students going into IT."

Michigan's Bureau of Labor Market Information & Strategic Initiatives lists several IT jobs on its Michigan's Hot Jobs List. These are "high demand and high wage" careers in Michigan that are expected to continue to be in demand through 2018.

Economy
1:05 pm
Thu May 10, 2012

Hostess Brands says layoffs could be coming in Michigan

GRAND RAPIDS, Mich. (AP) - Hostess Brands Inc. has notified state officials it may have to lay off about 380 Michigan workers as part of its plan to get out of bankruptcy. Possible cuts include 70 jobs in Detroit and 65 in Troy. Hostess filed for Chapter 11 protection in January.

Economy
11:24 am
Thu May 10, 2012

Moving up the economic ladder in Michigan

Despite a tough state economy, people in Michigan are better able to move up the economic ladder than people in almost every other state. That's according to a report released by the Pew Research Center today.

The study found overall economic status doesn't change much over people's lives.

Erin Currier is from the Pew Center. She says the study did not look at why certain states did better than others. But she says there are some general lessons.

“Certain drivers of mobility are extremely powerful and those drivers include things like educational attainment, savings and asset building, and neighborhood poverty during childhood among others,” Currier.

The study found states with the most economic mobility are New York, New Jersey and Maryland.

Economy
9:11 pm
Sat May 5, 2012

'Dejected': Some unemployed give up the hunt

Originally published on Fri May 4, 2012 3:35 pm

The unemployment rate slipped a notch to 8.1 percent in April, but not because employers went on a hiring spree.

Instead, the jobless rate appeared to improve because fewer people were applying for positions. Last month, the civilian labor force shrank by 342,000 people.

Economists say many of those workforce dropouts were "discouraged" workers who moved to the sidelines after months, even years, of trying to nail down jobs.

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News Roundup
9:12 am
Fri May 4, 2012

In this morning's news...

Credit Brother O'Mara / Flickr
Morning News Roundup, Wednesday, May 2nd

National unemployment numbers released this morning

The Bureau of Labor Statistics released unemployment numbers this morning. The unemployment rate "was little changed at 8.1 percent."

Nonfarm payroll employment rose by 115,000 for the month of April.

As Mark Memmott at NPR's Two-Way blog points out, "the economy needs to add more than 115,000 jobs a month to bring down the unemployment rate." So why the decline?

Mostly because the size of the "civilian labor force" shrank by 342,000 people, to 154.4 million. And the labor force "participation rate" edged down to 63.6 percent from 63.8 percent.

Assesing Michigan's fruit crop, worst in history

The fruit crop in Michigan got bitten by the bizarre weather. High temperatures in March brought the blossoms out, and freezes and frosts in April killed emerging buds.

More from the AP:

Farmers and extension agents say the one-two punch has all but wiped out the tart cherry crop, while other orchard fruits such as sweet cherries, apples, pears and peaches have suffered extensive damage. Juice grapes are another casualty.

Fifty-four-year-old David Rabe of Oceana County says he's been farming nearly all his life and has never seen it this bad. Only his asparagus may survive.

Flooding after rains move through the state

The flooding has caused problems for drivers this morning. Some roads in the Detroit and Flint areas have been closed.

The AP reports that both directions of I-75 at I-696 in suburban Detroit were closed today as the morning rush hour period approached.

A flash flood warning was issued for the Flint area, including Genesee and Shiawassee, counties due to the storm.

The National Weather Service has issued flood advisories, watches and warnings for parts of Michigan's Lower Peninsula following the storms.

More from the Flint Journal:

Hit with more than 5 inches of rain overnight, the county's creeks, streams and drains are swelling as residents cope with their own localized flooding this morning.

The National Weather Service said today that 5.4 inches of rain fell overnight, almost twice as much as the area usually gets in the entire month of May.

"It's bad everywhere," said county Drain Commissioner Jeff Wright. "The whole county got hit pretty well."

The 5.4 inches of rain recorded at Bishop overnight surpassed the total, normal monthly rainfall total for a typical month of May -- 3 inches.

Economy
2:50 pm
Wed April 18, 2012

Gov. Snyder tweets on a drop in Michigan's unemployment rate

Update 2:50 p.m.

The data was released by the Michigan Department of Technology, Management & Budget (DTMB) this afternoon. Michigan’s seasonally adjusted unemployment rate fell by three-tenths of a percentage point to 8.5 percent

And total employment increased by 21,000 in March, while the number of unemployed declined by 12,000.

The state’s workforce recorded a gain of 9,000 over the month.

“With the March data, Michigan continues to record incremental monthly unemployment rate reductions,” said Rick Waclawek, director of the Bureau of Labor Market Information and Strategic Initiatives.  “During the first quarter of 2012, the number of unemployed in Michigan fell by 37,000.”

1:58 p.m.

Well, Mr. Snyder probably did not send the tweet himself, but his 'people' did.

An unemployment rate of 8.5 percent for March is a .3 percent drop from February, and Snyder is taking credit for the drop by adding the hashtag "#TheReinventionIsWorking."

Even though the unemployment rate has been dropping since it hit a peak of 14.1 percent in August and September of 2009, the overall labor force in Michigan has been dropping - meaning there are fewer people working in the state.

Michigan's total labor force dropped each month from November 2006 (5.08 million people working) to December 2011 (4.63 million people working).

But that recently changed. The overall labor force started to grow again in January 2012, and Snyder indicates that growth continues with the addition 21,000 more jobs.

For an more on how the unemployment rate is calculated, look at my post here.

West Michigan
10:41 am
Thu April 5, 2012

Michigan company to expand after getting $10.4 million military contract

Credit courtesy Riveer Environmental
An "offgrid washrack" made by Riveer Environmental. The West Michigan company will build wash-racks for the U.S. Army.

Riveer Environmental in South Haven will nearly triple in size to accommodate a new $10.4 million contract with the U.S. Army, according to the Kalamazoo Gazette:

Riveer Environmental has been contracted to build 50 vehicle-washing systems that soldiers will use to power-wash everything from Jeeps and Humvees to Abrams tanks.

The systems, which are to be delivered to the Army on June 1 and Sept. 1 (18 and 32 units respectively) are expected to be used in Afghanistan. The company landed the Army contract in late February.

The company says the expansion translates into 10 new jobs - six have been filled.

Auto/Economy
4:52 pm
Tue April 3, 2012

Your Story: A retraining success, but not in the industry you’d expect

Jennifer Knightstep

Jennifer Knightstep was a researcher in the media archives at General Motors until she was laid off in 2008. Her first reaction was fear.

“I panicked for a few minutes, and then I tried to think of what I wanted to do next,” she says. “There’s not a big demand for archivists in Metro Detroit or anywhere else for that matter.”

So instead of trying to get a similar job, Knightstep decided to go in a new direction.

“I thought maybe I should start trying to do what I really wanted to do, which was be a writer.”

When she filed for unemployment, she learned about No Worker Left Behind, a program in Michigan that offered up to $10,000 in tuition for degrees in emerging industries. NWLB was scaled back in 2010 following federal funding cuts.

When most people think about growing fields, freelance writing is not the first job that comes to mind, but Knightstep made it work.

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Auto/Economy
12:32 pm
Tue April 3, 2012

More jobs than job seekers, automakers seek qualified people

Credit Ford Motor Co.
An electric vehicle engineer at Ford.

After laying-off tens of thousands of employees in 2009, automakers and engineering firms are racing to fill new positions.

Paul Eisenstein writes on The Detroit Bureau that at a recent career fair, job openings weren't in short supply - job seekers were.

Or more precisely, qualified job-seekers.

Eisenstein writes "the real rush is to find trained engineers."

two years ago, Altair Engineering...“had plenty of applications and no jobs.”  A few months ago, they put out the word that “they had 700 engineering slots and no one to fill them.”

This explanation is offered as to why there's a dearth of applicants.

Part of the problem is that the industry now needs to attract a largely new workforce at a time when engineering schools are struggling to fill slots and turn out fresh talent.

The bulk of the engineering employees released by the struggling Detroit makers over the last five years were older workers nearing the end of their careers.  They were often given buyouts that helped nudge them into a less painful retirement.  “And now...they just aren’t interested in coming back.”

And even if older engineers did apply for these jobs, one expert says their skill set might be out of date because changes in technology are happening so quickly.

This shortage of engineering talent is driving up costs for employers - bad for employers, but good for potential employees.

One group is working to change this. David Cole of the Center for Automotive Research has started "Building American's Tomorrow," a non-profit group working to attract young people to the engineering field.

Bryce Hoffman of the Detroit News writes the group is working to improve the image of engineering to young people who "have a dim view of manufacturing and the auto industry in particular."

Building America's Tomorrow grew out of the industry's efforts during the recent economic crisis to educate Washington about the economic importance of the auto sector.

"It's really an outgrowth of all the chaos in the auto industry," said David Cole, chairman emeritus of CAR and one of the founders of the organization. "Everyone was worried about whether we would survive. We did, but now we're not sure where we're going find the talent we need to stay in business."

It's a long term problem. And Cole says "if we don't do something about it, we're going to lose a core part of our economy."

Auto/Economy
9:47 am
Wed March 28, 2012

To prepare workers, retraining programs try to predict the future

Credit Preeti Upadhyaya
Wendy Whitmore, CEO of EMR Approved, and Penny Smith, who works in business development at EMR Approved. In 2009, Whitmore retrained her staff of 12 to turn her IT company into a company that deals with electronic medical records.

Unemployment numbers in the Midwest are bad. Not as bad as when the recession was at its worst, but there are still a lot of people looking for jobs. Even so, we keep hearing that some employers can’t find enough skilled workers. Michigan Governor Rick Snyder says in his state alone, there are more than 77,000 job openings that can’t be filled.

There is really only one way to bridge that gap. People need training. And the way people are getting that training is changing.

Wendy Whitmore is the CEO of EMR Approved, a company in Chicago that works with doctors and hospitals that are making the switch to electronic medical records.

Four years ago, EMR Approved didn’t exist. Back then, Wendy Whitmore was running SSG Consulting, an IT consulting firm that wasn’t doing so well.

So she decided to try something new, and she took 12 of her employees with her.

Whitmore still runs SSG Consulting, and some of her employees straddle both businesses, but what they’re doing now is totally new.

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Auto/Economy
12:20 pm
Wed March 14, 2012

Ann Arbor-based Tecumseh Products could make cuts after 2011 losses

The Ann Arbor based company Tecumseh Products, which makes compressors for refrigerators and air conditioners, experienced a tough 2011.

Yesterday, Crain's Detroit Business reported shares of Tecumseh "were at $3.93 late this morning, the lowest since their all-time low of $3.75 in March 2009."

The price ticked upward, and stands at $4.35 as of this posting.

Nathan Boomey of AnnArbor.com reports that there are concerns the company is too big, and that could mean layoffs for Tecumseh Products employees.

CEO Jim Conner said the company worked to reduce overhead and employee numbers in 2011, but "these actions alone were not sufficient to offset the lower sales, and additional restructuring actions may be necessary."

From AnnArbor.com

Connor...attributed the tough 2011 to "higher raw material costs, lower volumes and unfavorable changes in mix as a result of weak demand in the second half of the year."

The company said sales of compressors for commercial refrigeration and aftermarket devices fell 5.4 percent. That segment accounts for 58 percent of its total sales.

One positive sign for Tecumseh Products is sales increases in Latin America, where air conditioning is becoming more common in the home.

Tecumseh Products had about 7,300 employees as of July.

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