Detroit unemployment dips to 6.4%, but still high compared to state, national figures

Detroit Mayor Mike Duggan touted Thursday morning that the city hit a new decades-low unemployment rate, which — despite what might sound like two negatives, “low” and “unemployment” — is a good thing.

It means, he said, that his administration’s efforts to boost employment are working.

Duggan, who won a third term as mayor in 2021 and is widely expected to seek higher office, used the recent monthly unemployment figure, 6.4% from November, to highlight the city's success, noting that Detroit at Work, the city's workforce development effort, now has "more than 8,400 jobs available today."

"For the first time in my lifetime, we have a job available for every Detroiter who wants one," he said.

The unemployment rate is significantly down from a decade ago when the city was so economically challenged that it was forced to file for bankruptcy, the largest municipal filing in U.S. history ranked by both debt, estimated in the billions of dollars, and by city population.

The November unemployment rate is lower than 7% for the first time since December 2000. But it is still high in the context of much lower state and national unemployment rates.

On top of that, the city struggles with a poverty rate of about 30%, and per capita annual income of about $20,000.

During Thursday's event, Duggan batted down speculation and questions from reporters asking at the news conference whether the 64-year-old mayor is eyeing the U.S. Senate seat that 72-year-old Debbie Stabenow announced earlier that morning that she is planning to vacate at the end of her term.

And the mayor declined to predict whether his administration could sustain the lower unemployment rates: 8.1% in July, 7.9% in August, 7% in September and 7.2% in October. Since 2001, the city's unemployment rate has varied widely, month-to-month and year-to-year, from 7% to 37.5%, which came during the height of the pandemic.

Michigan’s seasonally adjusted jobless rate in November was 4.3%, according to the Michigan Department of Technology, Management & Budget, with state employment decreasing by 5,000, as unemployment edged up by 3,000. And nationally, the November unemployment rate was 3.7%, hovering between 3.5% and 3.7% since March.

In Duggan's view, Detroit's latest unemployment number illustrates the city's "ongoing success attracting good paying jobs to Detroit," as the city expects to add another 1,200 jobs in 2023 at an Amazon distribution center at the state fairgrounds and 400 jobs at a new employment center at the former AMC headquarters.

Auto supplier Lear, he added, is likely to reach full employment of 400 at a new seating facility at the former Cadillac Stamping Plant.

Other city officials, including the city's At Work Chief Strategy Officer Dana Williams and At Work Career Center Manager Trudy Matthews, also were on hand at the news conference at the Detroit At Work Career Center, 18017 E. Warren.

Nicole Sherard-Freeman, the mayor’s group executive for jobs, the economy and Detroit at Work, said the city’s unemployment numbers are improving as a result of training and other services that are helping Detroiters prepare for jobs.

Gus Gikas, vice president of operations for North America for international company Majorel, said that workforce talent lured the company to open offices in Detroit, adding that customer service employees can be trained, "but success in this role takes compassion, a collaborative attitude, and positive thinking."

To get employment help

Detroit at Work's website, https://detroitatwork.com/, offers an online portal to share information with Detroiters aimed at finding jobs and advancing careers through training and other services. Employers also can join Detroit at Work to recruit, train and retain qualified residents for open positions. Detroiters also can call 313-962-WORK or visit one of nine Detroit At Work career centers.

This article originally appeared on Detroit Free Press: Detroit's unemployment dips below 7% for first time in 2 decades