One-fourth of all workers in Michigan are unhappy with their jobs and fear being laid off, a trend that is pushing worker confidence in the state down to its lowest point since January 2004, according to a monthly survey of the eight most populous states.
According to the Hudson Employment Index, worker confidence in Michigan fell in June to 72, which is 12.9 points lower than last June's 84.9 reading. At its peak, the state index hit 108.5 in September 2004.
The monthly survey, released this week, is performed by Hudson Highland Group, a Tampa, Fla.-based employment and recruiting agency.
The index, based on a survey of 600 workers in the state, has tracked worker sentiment in Michigan since January 2004. The baseline rate for the measurement is 100, which means anything above 100 is a sign of a high worker confidence and anything below indicates concerns are outweighing their optimism.
The index also tracks worker sentiment in California, Florida, Illinois, New York, Ohio, Pennsylvania and Texas. Michigan continues to turn in the weakest level of worker confidence in the survey, while Texas has the strongest. The national index, based on responses from approximately 9,000 workers, plummeted 5.7 points in June to 101.2, its lowest reading in nine months.
"Worker confidence is dropping due to a combination of less expected hiring and heightened financial and job security concerns among workers," said Sarah Kafenstok, a Hudson spokeswoman.
In Michigan, workers' concerns are more heightened. The index showed:
The number of workers worried about losing their jobs increased to 28 percent in June from 22 percent in May.
Only 66 percent of workers reported being happy with their jobs in June, compared to 71 percent in May.
A total of 26 percent of workers said they were unhappy with their jobs in June, compared to 22 percent in May.
Fewer workers rated their finances favorably. More than half, 52 percent, said personal finances were worse in June, compared with 50 percent in May.
The survey is a reflection of how Michigan's economy continues to the lag the nation's as the state's manufacturing-based economy undergoes profound structural change.
Last year, Michigan was the only state with a shrinking gross domestic product, or GDP, according to Dana Johnson, chief economist for Comerica Inc., the financial institution that recently moved its headquarters out of Detroit to Dallas.
GDP is the value of all goods and services produced in the state, and in 2006 it fell 0.5 percent, while the national GDP grew 3.4 percent. In 2003, Michigan's GDP ranked 23rd in the U.S. Last year it fell to 35th.
Johnson says to reverse Michigan's slide, the U.S. economy -- beset by high gas prices, slowing growth and a deflating real estate bubble -- needs to get stronger and Detroit automakers need to halt their market share slide and return to profitability.
Manufacturing, construction and governmentaccounted for more than 80 percent of the state's GDP declines from 2003 to 2006, Johnson added.
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