Michigan's unemployment rate for June is at 7.2%, up from the May rate of 6.9%, and higher than last June's rate of 6.7%.
The administration has a few thoughts on why this is happening. Rick Waclawek, director of the Department of Labor and Economic Growth's Bureau of Labor Market Information and Strategic Initiatives (only a bureaucrat could have a title that long), was quoted in MIRS news,
"The increase in the June jobless rate can be partially traced to the very competitive nature of the state's current labor market. Typically, many young people enter the work force this time of year seeking summer jobs. Early indications are showing a more sluggish season for youth hiring."
Recall late last year when the legislature passed, and the administration supported and signed, a state minimum wage increase. Basic economics predicts that when entry level, part time and summer employees will cost more, employers will hire fewer of them. While the administration and the legislature were touting the great benefits the higher wage mandate would have for workers, free-market supporters were warning that the hike could decrease employment among the very workers the bill intended to help.
Now apparently DLEG sees that youth hiring is "sluggish" this summer, and Michigan's labor environment is more competitive. Maybe they're finally getting it. When you increase the cost of something (labor), you get less of it; i.e. higher unemployment. In this case, the effects center mostly on unskilled and younger workers, since they are most likely to be competing for minimum wage jobs.
DLEG apparently sees the symptoms...will they recognize the causes?