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Unemployment goes up, DPI closure impact unclear

ALPENA — The unemployment rate across Northeast Michigan shot up by a full percentage point last month as Decorative Panels International shut its doors, but it’s unclear what impact — if any — the factory closure had on February joblessness.

Data the Michigan Department of Technology, Management, and Budget released Thursday shows nearly 8% unemployment across Alpena, Presque Isle, Montmorency, and Alcona counties.

That’s up from less than 7% reported in January but lower than the nearly 9% reported in February 2023.

However, Northeast Michigan joblessness climbed nearly a percentage point between January 2023 and February 2023, too, suggesting the hike could be related as much to seasonal trends as to the DPI closure.

DPI closed its doors Feb. 22.

Unemployment typically rises in Northeast Michigan during the colder months as tourism winds down, but monthly rates this year have been lower than typical despite a growing workforce, suggesting area employers are offering more jobs than in the past.

Unemployment measures people looking for work and unable to find it, so the area’s joblessness rate could climb further in March as former DPI employees make their way into the labor force.

Check out the chart below showing month-by-month unemployment rates for Northeast Michigan and the statewide rate over the years. Viewing on mobile? Turn your device horizontally for the best viewing experience. Story continues below graphic.

How much the closure will impact the unemployment rate remains unclear. Mike Mahler, economic development director at the Alpena Area Chamber of Commerce, reported this week that many of the more than 150 DPI employees who lost their jobs had already been able to find new work.

The statewide unemployment rate, meanwhile, stayed flat at about 4% in both January and February, compared to nearly 5% in February 2023.

Northeast Michigan’s workforce, a measure of people either working or looking for work, grew by 278 people between January and February, to 26,096 workers last month. That’s up from 25,279 in February 2023.

The number of unemployed grew by 248 people from January to February, to about 1,900 people last month, according to the state data.

Alpena County’s roughly 5% unemployment last month tied with three other counties for the 37th-lowest unemployment rate among Michigan’s 83 counties.

Presque Isle County’s nearly 11% unemployment rate last month was the state’s third-highest.

Montmorency County’s 10% was the fifth-highest.

Alcona County’s roughly 9% unemployment was the 10th-highest.

The rates are not seasonally adjusted.

Check out the chart below showing annual unemployment rates for Northeast Michigan and the statewide rate over the years. Viewing on mobile? Turn your device horizontally for the best viewing experience. Story continues below graphic.

Michigan’s least-unemployed county last month was Washtenaw County, where 3% of the workforce couldn’t find a job.

The most-unemployed county was Mackinac County, where nearly 19% were out of a job.

The state also recently released 2023 annualized unemployment data showing Northeast Michigan’s 2023 joblessness stood at about 6%, the region’s second-lowest annualized unemployment rate since at least 2010.

The statewide annualized unemployment rate last year was just under 4%, the lowest since at least 2010.

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