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16-1485-CHI
Friday, August 05, 2016

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Detroit Area Employment — June 2016

Job Growth Up 2.1 Percent Over the Year

Total nonfarm employment in the Detroit-Warren-Dearborn Metropolitan Statistical Area stood at 2,004,100 in June 2016, up 42,100 or 2.1 percent over the year, the U.S. Bureau of Labor Statistics reported today. During the same period, the national job count increased 1.8 percent. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the Detroit metropolitan area has had over-the-year employment increases each month since June 2010. (See chart 1 and table 1; the Technical Note at the end of this release contains metropolitan area definitions. All data in this release are not seasonally adjusted; accordingly, over-the-year analysis is used throughout.)

The Detroit metropolitan area is made up of two metropolitan divisions—separately identifiable employment centers within the larger metropolitan area. The Warren-Troy-Farmington Hills division, which accounted for 62 percent of the metropolitan area's employment, added 28,800 jobs from June a year ago, a gain of 2.4 percent. The Detroit-Dearborn-Livonia Metropolitan Division, the area’s other employment center, added 13,300 jobs over the 12-month period, a 1.8-percent rise.

Industry employment

Professional and business services had the largest annual employment gain among Detroit’s supersectors, adding 14,200 jobs since June 2015. The 3.6-percent local rate of job growth in this supersector was higher than the 2.7-percent national rate. While both divisions added jobs, Warren’s job gains (+10,200) accounted for 72 percent of the metropolitan area’s growth in this sector. The Detroit area’s gains in this supersector were particularly strong in the professional, scientific, and technical services industry, which added 9,200 jobs over the year, a 4.5-percent increase. (See chart 2.)

Employment in leisure and hospitality rose by 10,500 from June 2015, the second largest increase in the Detroit area. Over-the-year employment gains in this supersector were similar in the two divisions. The local leisure and hospitality job growth rate of 5.3 percent was nearly double the national rate of 2.8 percent.

The Detroit area’s education and health services supersector gained 9,300 jobs, up 3.1 percent from the previous June. Both metropolitan divisions had annual gains, with Warren adding 5,200 jobs and Detroit adding 4,100 jobs. Nationwide, education and health services employment grew by 3.0 percent.

The financial activities supersector added 5,500 jobs, a gain of 5.1 percent over the year. The Detroit division saw the largest increase, adding 3,200 jobs, while the Warren division gained 2,300 jobs. Nationwide, employment in this industry increased 2.1 percent from June a year ago.

Three other supersectors in the Detroit area added more than 1,000 jobs over the year—trade, transportation, and utilities (+1,500), manufacturing (+1,200), and other services (+1,100). All of the job gains occurred in the Warren division.

Government lost 1,800 jobs in the local area from June 2015 to June 2016, a 1.0-percent decline. The Detroit division lost twice as many government jobs as the Warren division. Nationally, the government sector added jobs at a 0.5-percent rate from June a year ago.

Metropolitan area employment data for July 2016 are scheduled to be released on Friday, August 19, 2016.


Technical Note

This release presents nonfarm payroll employment estimates from the Current Employment Statistics (CES) program. The CES survey is a Federal-State cooperative endeavor between State employment security agencies and the Bureau of Labor Statistics.

Definitions. Employment data refer to persons on establishment payrolls who receive pay for any part of the pay period which includes the 12th of the month. Persons are counted at their place of work rather than at their place of residence; those appearing on more than one payroll are counted on each payroll. Industries are classified on the basis of their principal activity in accordance with the 2012 version of the North American Industry Classification System.

Method of estimation. The employment data are estimated using a "link relative" technique in which a ratio (link relative) of current-month employment to that of the previous month is computed from a sample of establishments reporting for both months. The estimates of employment for the current month are obtained by multiplying the estimates for the previous month by these ratios. Small-domain models are used as the official estimators for approximately 39 percent of CES published series which have insufficient sample for direct sample-based estimates.

Annual revisions. Employment estimates are adjusted annually to a complete count of jobs, called benchmarks, derived principally from tax reports which are submitted by employers who are covered under state unemployment insurance (UI) laws. The benchmark information is used to adjust the monthly estimates between the new benchmark and the preceding one and also to establish the level of employment for the new benchmark month. Thus, the benchmarking process establishes the level of employment, and the sample is used to measure the month-to-month changes in the level for the subsequent months.

Reliability of the estimates. The estimates presented in this release are based on sample survey and administrative data and thus are subject to sampling and other types of errors. Sampling error is a measure of sampling variability—that is, variation that occurs by chance because a sample rather than the entire population is surveyed. Survey data are also subject to nonsampling errors, such as those which can be introduced into the data collection and processing operations. Estimates not directly derived from sample surveys are subject to additional errors resulting from the special estimation processes used. The sums of individual items may not always equal the totals shown in the same tables because of rounding.

Employment estimates. Measures of sampling error for state CES data at the supersector level are available on the BLS website at www.bls.gov/sae/790stderr.htm. Information on recent benchmark revisions for states is available at www.bls.gov/sae/.

Area definitions. The substate area data published in this release reflect the delineations issued by the U.S. Office of Management and Budget on February 28, 2013. A detailed list of the geographic definitions is available at www.bls.gov/lau/lausmsa.htm.

Detroit-Warren-Dearborn, Mich. Metropolitan Statistical Area includes Lapeer, Livingston, Macomb, Oakland, St. Clair, and Wayne Counties in Michigan.  

The Detroit-Dearborn-Livonia, Mich. Metropolitan Division includes Wayne County in Michigan.

The Warren-Troy-Farmington Hills, Mich. Metropolitan Division includes Lapeer, Livingston, Macomb, Oakland, and St. Clair Counties in Michigan.

 

Additional information

More complete information on the technical procedures used to develop these estimates and additional data appear in Employment and Earnings, which is available online at www.bls.gov/opub/ee/home.htm. Industry employment data for states and metropolitan areas from the Current Employment Statistics program are also available from the BLS website at www.bls.gov/sae/.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.

Table 1. Employees on nonfarm payrolls by industry supersector, the United States and the Detroit metropolitan area and its components, not seasonally adjusted (numbers in thousands)
Area and Industry
 
Jun
2015
Apr
2016
May
2016
Jun
2016 (P)
Jun 2015 to
Jun 2016 (P)
Net
change
Percent
change

United States

 

Total nonfarm

142,717 143,934 144,557 145,239 2,522 1.8

Mining and logging

825 691 689 692 -133 -16.1

Construction

6,621 6,561 6,699 6,850 229 3.5

Manufacturing

12,407 12,239 12,256 12,374 -33 -0.3

Trade, transportation, and utilities

26,955 27,061 27,220 27,375 420 1.6

Information

2,755 2,785 2,742 2,802 47 1.7

Financial activities

8,168 8,210 8,249 8,337 169 2.1

Professional and business services

19,797 20,088 20,137 20,330 533 2.7

Education and health services

21,829 22,755 22,698 22,484 655 3.0

Leisure and hospitality

15,742 15,367 15,711 16,186 444 2.8

Other services

5,687 5,682 5,704 5,761 74 1.3

Government

21,931 22,495 22,452 22,048 117 0.5

Detroit-Warren-Dearborn, MI Metropolitan Statistical Area

 

Total nonfarm

1,962.0 1,960.3 1,985.8 2,004.1 42.1 2.1

Mining, logging, and construction

70.0 63.4 68.9 70.2 0.2 0.3

Manufacturing

240.7 241.0 240.7 241.9 1.2 0.5

Trade, transportation, and utilities

362.7 358.0 362.1 364.2 1.5 0.4

Information

27.5 27.4 27.6 27.9 0.4 1.5

Financial activities

108.9 110.9 112.8 114.4 5.5 5.1

Professional and business services

392.3 398.6 404.6 406.5 14.2 3.6

Education and health services

302.6 307.8 309.5 311.9 9.3 3.1

Leisure and hospitality

196.5 192.5 199.5 207.0 10.5 5.3

Other services

76.8 76.8 77.2 77.9 1.1 1.4

Government

184.0 183.9 182.9 182.2 -1.8 -1.0

Detroit-Dearborn-Livonia, MI Metropolitan Division

 

Total nonfarm

741.3 744.8 750.0 754.6 13.3 1.8

Mining, logging, and construction

21.2 19.4 21.5 21.0 -0.2 -0.9

Manufacturing

90.3 91.0 89.2 88.3 -2.0 -2.2

Trade, transportation, and utilities

140.2 139.4 139.9 140.1 -0.1 -0.1

Information

7.3 7.4 7.4 7.5 0.2 2.7

Financial activities

33.9 35.0 36.3 37.1 3.2 9.4

Professional and business services

125.6 126.8 128.9 129.6 4.0 3.2

Education and health services

130.1 132.4 132.6 134.2 4.1 3.2

Leisure and hospitality

78.4 79.3 81.0 83.8 5.4 6.9

Other services

29.5 28.9 29.1 29.4 -0.1 -0.3

Government

84.8 85.2 84.1 83.6 -1.2 -1.4

Warren-Troy-Farmington Hills, MI Metropolitan Division

 

Total nonfarm

1,220.7 1,215.5 1,235.8 1,249.5 28.8 2.4

Mining, logging, and construction

48.8 44.0 47.4 49.2 0.4 0.8

Manufacturing

150.4 150.0 151.5 153.6 3.2 2.1

Trade, transportation, and utilities

222.5 218.6 222.2 224.1 1.6 0.7

Information

20.2 20.0 20.2 20.4 0.2 1.0

Financial activities

75.0 75.9 76.5 77.3 2.3 3.1

Professional and business services

266.7 271.8 275.7 276.9 10.2 3.8

Education and health services

172.5 175.4 176.9 177.7 5.2 3.0

Leisure and hospitality

118.1 113.2 118.5 123.2 5.1 4.3

Other services

47.3 47.9 48.1 48.5 1.2 2.5

Government

99.2 98.7 98.8 98.6 -0.6 -0.6

Footnotes
(P) Preliminary
 

 

Last Modified Date: Friday, August 05, 2016