Michigan's Troubled Economy: It Could Be Worse
DETROIT -- Bad news on the automotive front pushed Michigan's October unemployment rate up to 7.7%.
The jobless rate is the state's highest in 15 years (see chart above, click to enlarge), two-tenths of a percentage point higher than September's rate, and it almost certainly guarantees that Michigan will continue to post the worst state unemployment rate in the nation.
But hey, it could be worse. It could the late 1970s, when Michigan's jobless rate averaged 8.15% from 1976-1979. It could be the 1980s, when the average was almost 11% (10.81%), and a whopping 13.22% during the first half of the decade. And as bad as a 7.7% unemployment rate sounds today, it's actually slightly below Michgian's average monthly unemployment rate of 7.9% from 1976-2007 (see chart above).
Consider also that Michigan has a $405 billion economy (2006) that would be the 17th largest economy in the world if it were a separate country, ahead of Belgium ($393b), Turkey ($392b), Sweden ($385b), Switzerland ($377b), Taiwan ($355b), and Saudi Arabia ($348b).
So as bad as economic conditions might appear in Michigan, it survived the 1970s and 1980s, and it has a $400 billion economy that will survive the relatively high unemployment rates today.