CADILLAC - Employment at the national level is beginning to show some improvement. In Michigan, however, that trend has moved a little slower and northern Michigan lags behind the rest of the state.
At this point, it is difficult to compare those figures due to the seasonal changes of employment in the area, said Jim Rhein, a labor market analyst for the Michigan Department of Labor and Economic Growth. "In northern Michigan, it is so seasonal with a lot of volatility in the winter months. You have to wait until at least the second quarter to compare (northern Michigan) versus the rest of the state," Rhein said.
From 2003 to 2004, Rhein said most of the state has increased in employment rates by 2 percent. However, it is still too early to tell if that is a sign of recovery, Rhein said.
Statewide, the Michigan Department of Labor and Economic Growth reported a 7.3 percent unemployment rate in February. Yet in Wexford County the rate is 9.3 percent, Osceola County is 8.7 percent, Lake County is 13.1 percent and Missaukee County is 9.7 percent. The city of Cadillac has a 9.2 percent unemployment rate. For other cities, McBain has a 7.8 percent rate, Lake City is 11.3 percent, Reed City is 7.5 percent, Evart is 11.1 percent and Manton has a 10.1 percent unemployment rate.
"Part of it is manufacturing is a weak sector at the national level and Michigan is more of a manufacturing area," said Joan Crary, an economist with the University of Michigan. "Manufacturing still hasn't turned around at the national or state levels."
Similarly, Crary said government jobs, including city, state and education positions, have declined.
"That group is feeling the affects of statewide budget cuts," Crary said. "That area is weak and will continue to be weak."
While many areas have been struggling, Crary said there have been some areas on the upswing. These include the service sector, construction and financial businesses such as real estate, banking and insurance.
Cadillac City Manager Pete Stalker said locally there have been signs of recovery throughout various sectors. He said seasonal jobs in northern Michigan make unemployment numbers deceptive.
"With the job creation we've had in manufacturing, I think we're well above what the rest of the state is in (employment rates)," Stalker said.
Cadillac has experienced significant job growth in 2003 with Four Winns adding at least 100 new jobs and BorgWarner expanding by nearly 50 employees.
A recent study by Manpower showed that 45 percent of employers in Cadillac are planning to hire in 2004, ranking the city 10th in the nation.
"It clearly indicates Cadillac's experience is a little contrary to the rest of the state," Stalker said. "We're in a better position than a lot of areas in the state because our manufacturers are stable or companies are adding jobs."
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