04-12-2002





























Michigan unemployment climbs to 6.5%


By Tom Bratt

Staff Writer

Michigan's unemployment rate is still climbing, recently topping 6.5 percent, state officials announced last week.

According to January figures, the state's unemployment is now a full point higher than the national rate of 5.6 percent and nearly two points higher than it was last year, a difference that has many Michigan residents worried.

But low numbers in January are no cause for panic, according to Professor George Monsma of the economics department.

``Statistics may be misleading, for they may not be seasonally adjusted,'' he said.

According to Monsma, statistics should be modified to account for traditional seasonal work patterns. For example, unemployment is traditionally lower in November and December than it is in January because stores hire people as Christmas help, he said.

Monsma added that unemployment is also traditionally lower in the summer because construction-related jobs are fully functional, calling for more employees. The seasonally adjusted unemployment rates for Michigan were the highest they had been since February of 1994, Monsma said.

Moreover, unemployment rates are lower than they were in the early 1990s when they peaked at 9.5 percent in January of 1992, he said.

He agrees, nevertheless, that Calvin graduates ``are having a harder time [finding jobs] than they have had the past couple years.''

That's exactly what worries graduating Calvin senior Bryan Hoekstra.

``It's pretty obvious that there aren't as many jobs,'' said Hoekstra, who is struggling to find full-time post-college employment.

``I know that programs such as Americorps and Teach for America are filling up fast. Grad schools are turning people down at a higher rate as well,'' he said.

The job search is definitely becoming more difficult, agreed Bonnie Speyers, Assistant Director of Calvin's Career Services. For example, Companies have reduced their number of employees and are looking for people who can multi-task, leaving students fewer options, she said.

In addition, ``starting bonuses and multiple offers are out,'' she said.

``To be honest, all fields have been affected by the economy in some way,'' agreed Dana Hebreard of Career Services, who has noticed a steady increase in student participants at job fairs.

The current unemployment rates do not just affect full-time jobs, but part-time and summer jobs as well.

Calvin freshman Joe Bratt recently discovered that the local landscaping company for which he works is giving out lower than normal raises.

``I guess I'm lucky to have a job at all,'' he said.

A major cause of local unemployment -- which has risen to 5.6 percent, the highest the rate has been since February, 1994 -- is job cuts by three of West Michigan's large furniture companies.

Because these companies expanded their offices a few years ago, the economic downturn is forcing them to cut jobs or cease expansion, said Monsma.

If durable goods like office furniture are not selling, it usually means that the national economy in the business world is down. Unemployment trends follow those business patterns, thus deciding the national economy, he said.

Because fewer jobs are available locally and across the state, Hebreard recommends that students ``think broadly,'' realizing that industries they would quickly dismiss may have a place for them -- such as construction companies seeking employees to do office work and keep their books.

At one recent job fair, the Department of Health and Human Services was searching for accountants, said Hebreard, proving that ``people need to think `out of the box' when researching career opportunities,'' she said.

Unemployment is also a hot issue in Michigan Legislature. The House and Senate are trying to agree upon a bill to benefit those currently unemployed. The proposed bill would increase the maximum weekly benefits from $300 per week to anywhere from $315-415 per week, depending on the amount of dependants a person has.

The Senate and House have not yet been able to agree upon a bill. ``It's important to reach a quick compromise on the issue. Every day we delay is another that families struggle to make ends meet,'' said Senate Minority Leader John Cherry.

Americorps and Teach for America are filling up fast. Grad schools are turning people down at a higher rate as well,'' he said.

The job search is definitely becoming more difficult, agreed Bonnie Speyers, Assistant Director of Career Services. For example, companies have reduced their number of employees and are looking for people who can multi-task, leaving students fewer options, she said.

In addition, ``starting bonuses and multiple offers are out,'' she said.

``To be honest, all fields have been affected by the economy in some way,'' agreed Dana Hebreard of Career Services, who has noticed a steady increase in student participants at job fairs.

The current unemployment rates do not just affect full-time jobs and graduating seniors, but people seeking part-time and summer employment as well.

Calvin freshman Joe Bratt recently discovered that the local landscaping company for which he works is giving out lower than normal raises.

``I guess I'm lucky to have a job at all,'' he said.

A major cause of local unemployment -- which has risen to 5.6 percent, the highest the rate has been since February of 1994 -- is job cuts by three of West Michigan's large furniture companies.

Because these companies expanded their offices a few years ago, the economic downturn is forcing them to cut jobs or cease expansion, said Monsma.

If durable goods like office furniture are not selling, it usually means that the national economy in the business world is down. Unemployment trends follow those business patterns, thus deciding the national economy, he said.

Because fewer jobs are available locally and across the state, Hebreard recommends that students ``think broadly,'' realizing that industries they would quickly dismiss may have a place for them -- such as construction companies seeking employees to do office work and keep their books.

At one recent job fair, the Department of Health and Human Services was searching for accountants, said Hebreard, proving that ``people need to think `out of the box' when researching career opportunities.''

The Michigan Legislature is currently considering a bill to benefit those currently unemployed. The proposed bill would increase the maximum weekly benefits from $300 per week to anywhere from $315-415 per week, depending on the amount of dependants a person has.