If automotive jobs are helping Alabama, they have really revved up in Michigan this year. Of course, that's because things had become extraordinarily bad in Detroit. Car and light-truck sales plunged by 40 percent during the depths of the recession, and the automakers laid off thousands of workers.
As the economy bottomed out last year, the industry began to revive due in part to pent-up demand. A decline in oil prices also helped the Detroit area recover some of its lost auto jobs. Michigan's unemployment rate has gone from 14.5 percent in December to 13.1 percent in July.
Although Michigan was hit so hard – the financial crisis caused Americans to shun big-ticket purchases – the state hasn't enjoyed any above-average help from the Recovery Act. But the federal government did provide direct aid to the auto industry, saving General Motors and Chrysler from possible liquidation and creating a "cash for clunkers" trade-in program to boost new-car sales.
Michigan has 31,000 more jobs than it did in December, gaining that many in manufacturing alone. But as the still-high jobless rate attests, the state and its Motor City has a tough road head.
