Wednesday, November 14, 2007

Unemployment climbs again in Michigan

The unemployment rate in Michigan is now 7.7%, a full 3 points above the national average. If that news is not bad enough, it appears that the decline in employment is accelerating. MIRS reports that the 22,000 jobs lost in October was the largest month-over-month loss this year.

And it isn't just manufacturing jobs, either. There was a loss of 8,000 mfg. jobs, but also 5,000 in the hospitality and leisure sector. No doubt, much of that is seasonal, but no matter how you look at it, the news is not encouraging.

Meanwhile, the tax on services issue has not been resolved and the Governor is now holding the process "hostage" until she gets guarantees of $40 million in new revenues to cover the "loss" of the service tax which would occur during the period from December 1 to December 20.

The legislature did not meet this week. Session was scheduled for Tuesday, but canceled the night before. The next scheduled day for session is Tuesday before Thanksgiving. It will be interesting to see if the House Dems have come up with a plan to fix this issue.

The only thing job providers dislike more than poor tax policy is uncertainty. The clock is ticking and 60,000 businesses don't know what is expected of them come December 1st. We need some leadership...

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