Michigan and Detroit’s unemployment decreases while home values continue to increase

  • From February 2015 to March 2015, the unemployment rate across the state and in the City of Detroit’s decreased (monthly);
  • The Purchasing Manager’s Index for Southeast Michigan increased from March 2015 to April 2015 (monthly);
  • Commodity Price Index increased from March 2015 to April 2015 for Southeast Michigan (monthly);
  • Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area shows home prices have been increasing since September.

According to the most recent data provided by the Michigan Department of Technology, Management, and Budget, the unemployment rate for the state of Michigan decreased from 5.8 percent in February to 5.7 percent in March. During this same period, unemployment in the city of Detroit also decreased from 12.5 in February percent to 11.7 percent in March.

From February to March, the number of people employed in the city of Detroit decreased by 300, leading to a total of 209,417 people employed in March.

The above chart shows the number of people employed in the auto manufacturing industry in the Detroit Metropolitan Statistical Area (MSA) (Detroit-Warren-Livonia) from January 2014 to January 2015. From February to March the number of people employed in this industry declined by 600, to a total of 106,500. This is the first time employment in this industry in the Detroit Metropolitan Statistical Area has dropped since July of 2014. Despite the decline, March had the second highest number of people employed in the auto manufacturing industry in the last year; February had the highest number.

The Purchasing Manger’s Index (PMI) is a composite index derived from five indicators of economic activity: new orders, production, employment, supplier deliveries, and inventories. A PMI above 50 indicates the economy is expanding.

According to the most recent data released on Southeast Michigan’s Purchasing Manager’s Index, the PMI for April 2015 was 66.3, an increase of 1.8 points from the prior month. It was also an increase of 10 from April of 2014.

The Commodity Price Index, which is a weighted average of selected commodity prices, was recorded at 57.9 points in April 2015, which was 7.9 points higher than the previous month and 6.4 points lower than April 2014.

The above charts show the Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area. The index includes the price for homes that have sold but does not include the price of new home construction, condos, or homes that have been remodeled.

According to the index, the average price of single-family dwellings sold in Metro Detroit was $98,400 in February 2015. This was an increase of approximately $5,000 from the average price in January 2014. Since February of 2014, prices have increased by $3,590.

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