Various factors, including
skyrocketing oil prices, have forced the American auto industry to shed thousands of jobs this year.
Automotive layoffs accounted for 39,000 of the 84,000
total jobs lost last month, the Labor Department reported Friday, helping push the nation’s unemployment rate to a five-year high of 6.1% for the month.
Shifting consumer preferences away from SUVs and increasing foreign competition have severely impacted the automotive market. The state of Michigan has been especially affected.
Rick Waclawek of the state’s Bureau of Labor Market Information and Strategic Initiatives said that between 2002 and 2007, Michigan lost 117,000, or 21%, of its automotive-related jobs. The lost automotive jobs accounted for nearly half of the about 243,000 total jobs the state lost during that period.
“Historically, Michigan has always been the bellwether,” Waclawek said. “When economic times get tough, purchases of big ticket items like cars go down, and Michigan feels it first.”
Ford and General Motors both have plans to let go of thousands of workers.