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Manufacturing Jobs Set to Surpass Government Jobs in Michigan for First Time in Years
Michigan Capitol Confidential ^ | 4/20/2015 | Tom Gantert

Posted on 04/21/2015 3:44:44 AM PDT by MichCapCon

For the first time in 110 months, the number of manufacturing jobs could exceed the number of government jobs in this state, according to data from the federal Bureau of Labor Statistics.

As of February 2015, the latest period for which data is available, there were 593,300 government jobs in Michigan and 593,100 manufacturing jobs.

Employment in Michigan took a beating during the 2000s, said Michael LaFaive, director of the Morey Fiscal Policy Initiative for the Mackinac Center for Public Policy, in an email.

“Manufacturing was just one industry that was hit hard,” LaFaive said. “Finally after eight long years, manufacturing employment is poised to once again exceed government employment in Michigan.”

In the 1990s, Michigan manufacturing jobs consistently outnumbered government jobs. That ended in September 2005, when BLS statistics showed 675,000 government jobs and 674,000 manufacturing jobs in the state. The figures shifted slightly during the next two months before tilting over on a long-term basis in December 2005. Starting that month, government jobs exceeded manufacturing jobs, and kept that edge for the next 111 months.

The most recent figures are from February of this year, when Michigan manufacturing jobs were just 200 fewer than the number of government jobs. The largest employment gap between the two sectors came in June 2009, when there were nearly 227,000 more government jobs than manufacturing jobs.

click to enlarge

Mark Perry, a scholar at the American Enterprise Institute and a finance and business professor at the University of Michigan-Flint, said there were several reasons for a rise in manufacturing in Michigan.

Perry said the auto industry recovered from the 2009 Great Recession due in part to a general economic recovery. The industry was further boosted by the lowest auto loan interest rates in at least 50 years, leading to strong auto sales.

Michigan government employees includes those who work for the local, state and federal government as well as universities and colleges and K-12 school districts. Manufacturing includes all the factories in Michigan.

“As the auto industry has recovered, so had the demand for autoworkers, which has helped boost Michigan manufacturing payrolls to the highest level in nearly seven years, going back to early 2008,” Perry said in an email.

He said not many recognize that the Great Recession caused the public sector to contract and downsize.

“For example, compared to pre-recession peaks in 2007, there are 131,000 fewer state government jobs nationally, 195,000 fewer federal employees, and 524,000 fewer local government employees. Together, that means there are about 850,000 fewer government employees today than in 2007,” Perry said.

LaFaive said during the early 2000s, Michigan’s economy slumped while the national economy improved.

“That is what made the period unique,” he said. “Typically Michigan does well when the nation does well. I would suggest that the decline in the state’s economic fortunes was unusually deep in part due to many of the policies the Legislature and governors of that decade adopted, including large tax and fee hikes, regulation hostile to commerce and reliance on corporate welfare subsidies. In addition, an air of uncertainty was created for business leaders as lawmakers scrapped a hated and onerous Single Business Tax for the hated and perhaps more onerous Michigan Business Tax.”

There has been dramatic improves in Michigan’s public policy landscape, LaFaive said, pointing to the right-to-work law and business tax cuts.


TOPICS: Government
KEYWORDS: jobs

1 posted on 04/21/2015 3:44:45 AM PDT by MichCapCon
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To: MichCapCon

WHAT is being manufactured ?


2 posted on 04/21/2015 3:53:25 AM PDT by knarf
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To: knarf

Autos, and auto parts.


3 posted on 04/21/2015 3:55:32 AM PDT by 1rudeboy
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To: 1rudeboy

That’s what I thought, but I didn’t want to sound stereotypical.


4 posted on 04/21/2015 4:02:15 AM PDT by knarf
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To: MichCapCon
As of February 2015, the latest period for which data is available, there were 593,300 government jobs in Michigan…

He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance.

Unemployed = 300,000+

Cut government jobs in half. Send the rest of those employed by government to the unemployment line. Hire those currently unemployed for half the pay and no benefits/perks to sit at those "government" jobs and figure out ways to eliminate their jobs.

Debt $74,326,828,333

Debt divided by current "government" employees = $125,269 per "government" employee.

Send each of the current "government" employees their bill.

5 posted on 04/21/2015 4:50:36 AM PDT by PGalt
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To: 1rudeboy

This must upset you greatly. What are these companies thinking? Why aren’t these factories off shored to China? Right?


6 posted on 04/21/2015 4:52:50 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: MichCapCon

http://www.usdebtclock.org/state-debt-clocks/state-of-michigan-debt-clock.html


7 posted on 04/21/2015 4:53:09 AM PDT by PGalt
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To: MichCapCon
Government jobs are not "jobs." That is, they do not create any wealth. At best they protect wealth (firemen, policemen), or they foster the creation of wealth (teachers). They are a drain on the wealth-producing part of the economy. Some level of government "jobs" can be beneficial. However, when the drain on the economy offsets the benefits, they become a net loss. I think Michigan has gone well beyond the point where government "jobs" are beneficial to the rest of the economy.
8 posted on 04/21/2015 8:40:09 AM PDT by JoeFromSidney ( book, RESISTANCE TO TYRANNY, available from Amazon)
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To: central_va

We ship to China.


9 posted on 04/21/2015 4:12:21 PM PDT by 1rudeboy
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To: 1rudeboy
We ship to China.

I don't know who "we" is/are but if you manufacture in the USA you should be off shored. No US worker can compete with Chinese slave wages and you know it. Your whole operation is an efficient useless dinosaur. Shut down and move to China immediately or commit suicide your choice.

10 posted on 04/22/2015 5:00:16 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: 1rudeboy
Your whole operation is an inefficient useless dinosaur

Fixed.

11 posted on 04/22/2015 5:01:30 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

Your incessant whining and trolling makes me think of the American spirit, and how you don’t have a shred of it.


12 posted on 04/22/2015 1:21:30 PM PDT by 1rudeboy
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To: 1rudeboy
Your incessant whining and trolling makes me think of the American spirit, and how you don’t have a shred of it.

I learned everything about Free Trade form the best traitor of them all, you.

My post just mimicked the party line you taught me.

13 posted on 04/23/2015 5:39:00 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

Isn’t it time for you to post that quote from Marx, you commie?


14 posted on 04/23/2015 1:28:44 PM PDT by 1rudeboy
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To: 1rudeboy

Your the free trade Marxist not moi.


15 posted on 04/24/2015 2:45:04 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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