News Summary
In the week ending July 5, 2023, Michigan’s unemployment claims surged to 15,581, marking a 130% increase from the previous week. The rise is primarily attributed to seasonal automotive manufacturing plant shutdowns. The state’s overall unemployment rate has now risen to 5.4%, exceeding the national average. Job losses from companies like TerrAscend Corp and Blue Cross Blue Shield of Michigan have contributed to this spike. In response, Michigan has enhanced its unemployment benefits, increasing weekly amounts and extending the benefit duration.
Detroit, Michigan — Initial filings for unemployment benefits in Michigan surged to 15,581 in the week ending July 5, 2023, marking a staggering 130% increase from the previous week, which saw 6,783 new claims. The spike in unemployment claims is largely attributed to the seasonal shutdowns of automotive manufacturing plants common during summer months.
Comparatively, during the same period last year, Michigan reported 17,675 new claims for unemployment benefits. The rise in filings has contributed to an increase in Michigan’s overall unemployment rate, which now stands at 5.4% as of May 2023, up from a post-pandemic low of 3.7%. This figure also surpasses the national average unemployment rate of 4.2%.
On a national scale, U.S. unemployment claims decreased slightly to 227,000 last week, which is a drop of 5,000 from the 232,000 claims made the week prior, adjusted for seasonal factors. In contrast, North Dakota experienced the most significant percentage increase in weekly claims, rising by 252.8%. Meanwhile, New Hampshire saw the largest decrease, with new claims falling by 48.8%.
Impact on Employment
The recent wave of unemployment claims in Michigan can be attributed to broader changes in the local job market. Notable job losses have occurred recently, with over 230 employees from TerrAscend Corp. being laid off due to the company’s decision to exit the Michigan market. Additionally, nearly 220 nonunion employees at Blue Cross Blue Shield of Michigan were let go in June, accompanied by the elimination of over 400 positions as part of a cost-saving initiative expected to save $285 million in administrative expenses. Furthermore, Michigan State University has announced layoffs among its faculty and staff, highlighting the strain on various sectors across the state.
Changes in Unemployment Benefits
To assist those affected by job losses, Michigan has made significant changes to its unemployment benefits. As of April 2, 2023, the state increased the maximum weekly unemployment benefits from $362 to $446, and extended the duration of benefits from 20 weeks to 26 weeks. This adjustment is a notable change, as the first increase in the number of weeks benefits can be claimed is the first in over a decade, following a reduction that occurred in 2011. Future increases are planned for 2026 and 2027, which will see maximum weekly benefits rise to $530 and $614, respectively. Additionally, the dependent allowance is set to increase from $6 to $12.66 this year, with further planned hikes to $19.33 in 2026 and $26 in 2027.
Best Practices for Claimants
Michiganders seeking unemployment benefits are encouraged to keep their Michigan Web Account Manager (MiWAM) updated for the most accurate information regarding their claims. It is crucial for individuals to respond promptly to any requests or correspondence from the Unemployment Insurance Agency (UIA) to avoid any delays in receiving benefits.
Conclusion
The surge in unemployment claims in Michigan is a concerning indicator for the state’s economy, particularly as it battles seasonal closures in the automotive sector and other significant layoffs in various industries. As Michigan navigates these challenges, assistance mechanisms like enhanced unemployment benefits are vital for supporting those impacted by job loss.
Deeper Dive: News & Info About This Topic
- Holland Sentinel: Unemployment Numbers
- Detroit Free Press: Unemployment Benefit Claims Spike
- Battle Creek Enquirer: Unemployment Numbers
- Ainvest: Michigan Rising Unemployment Claims
- CBS News: Michigan Unemployment Benefits Increase
- Wikipedia: Unemployment in the United States
- Google Search: Michigan unemployment benefits
- Google Scholar: Michigan unemployment claims
- Encyclopedia Britannica: Unemployment
- Google News: Michigan economy
