If Michigan’s August unemployment numbers were a blow to the state, Monday’s announcement of more layoffs at automaker Stellantis promises to be a gut punch for September.
While 32 other states saw positive job growth in August, Michigan dropped for the third straight month, according to Michigan Capitol Confidential. Michiganders lost 2,200 jobs in August, bringing total job losses to 11,200 since June. In 2024, as a whole, Michigan has turned in the second-worst performance in the United States.
James Hohman, director of fiscal policy at the Mackinac Center for Public Policy, noted that Michiganders are reaping the harvest sowed by Democrats in Lansing.
Go Ad-Free, Get Content, Go Premium Today - $1 Trial
“Michigan’s labor market is trending down at a time when the country is adding jobs,” Hohman said.
“Lawmakers ought to care a lot more about improving Michigan’s business climate because the state has been falling behind,” he added.
Along with a drop in employment numbers came yet another increase in the unemployment rate, which hit 4.5 percent last month – a full 0.5 percent higher than last year.
As reported Aug. 16 by The Midwesterner, Michigan employment declined by 6,000 in July, unemployment increased by 16,000, and the labor force grew by 10,000,citing data from the Michigan Department of Technology, Management and Budget.
Go Ad-Free, Get Content, Go Premium Today - $1 Trial
Making matters worse, more bad news came out of the auto industry last week, as the Detroit Free Press reported that Stellantis NV announced that another 191 factory jobs would be cut in Sterling Heights, leading to a precipitous drop in auto stock prices.
Though many of those are reportedly temp jobs, according to Stellantis spokesperson Ann Marie Fortunate, some full-time employees will also likely be laid off because of poor “market conditions.”
“Stellantis is in full execution mode focused on both protecting the company from the continued intense external market conditions and, at the same time, offering customers vehicles they can afford,” Fortunate said, adding that the company hopes the layoffs will “improve efficiency.”
Notably, Stellantis has been a major beneficiary of government subsidy programs, taking millions from Michigan taxpayers.
The company is expected to fire or lay off thousands more of its work staff in the coming months.
According to 24/7 Wall Street, Stellantis’ issues may signal industry-wide issues stemming from government pressure on automakers and auto buyers to transition to electric-battery powered vehicles. Stellantis, 24/7 Wall Street ominously projects that Stellantis may layoff up to 50% of its North American workforce.
The news Monday drove Stellantis stock prices down 13%, but also sent shockwaves across the industry that drove Ford shares down an additional 3% Thus far this year, Ford shares have fallen 14%.
Stellantis announced in August that it would “indefinitely” lay off up to 2,450 union employees at its Warren Truck Assembly Plant. The plant moved from two shifts daily to one shift last month.
The fallout from suppliers was immediate, with seat maker Bridgewater Interiors LLC announcing it would permanently lay off 63 workers.
Last month, Stellantis announced buyout offers for its eligible non-union, salaried staff, citing inflationary pressure and the reluctance of the car buying public to purchase electric vehicles after an earnings report that showed a decline of 48% through the first six months of 2024,