Michigan’s unemployment rate – the highest in the country – continues to increase.

It was 12.6 percent last month, according to The Michigan Department of Labor and Economic Growth. Unemployment was recorded at a 25,000 person increase, keeping Michigan at the No. 1 spot in unemployment in the nation with Oregon at 12.1 percent. South Carolina followed at 11.4 percent.

The state unemployment rate for March 2008 was 7.6 percent.

Rick Waclawek, director of the Michigan DLEG, said the auto industry is an obvious basis for Michigan’s continuing unemployment decline. The auto industry is coming back from the extended layoffs this year, he said.

“After the extra-long layoffs in the auto industry because of inventory levels, the industry is finally hiring many of their employees back in, which is good,” Waclawek said.

Michael Shields, an economics professor, said there are many reasons people are concerned about the auto industry.

“The auto industry really depends on many things for its future, including the decisions of Chrysler and General Motors,” Shields said.

Although unemployment rates continue to rise, some are recognizing positive notes for Michigan. For one, Waclawek said, recent jobloss rates have not gotten drastically worse.

“A silver lining is that there haven’t been any dramatic declines in the construction and retail industries, and health care has also been pretty temperate,” Waclawek said. Shields also agrees that even under the current conditions, “the economy is starting to look better.”

Isabella County has a lower unemployment rate compared to other Michigan counties, and Shields said it was because of the bigger businesses here.

“Not a lot of people are coming here to look for jobs or are losing jobs,” Shields said. “Plus, we have CMU and the casino, which are both big businesses.”

Looking at the nation’s unemployment status as a whole, the future still is at bay, Shields said.

“It worries me that Congress and the people are putting too much concern in the wrong place and will end up pulling a ‘Herbert Hoover’ type thing,” Shields said, and added that Congress and the public are “ideologically being lumped into Hooverism.”

Many believe that 2009 will be the lowest of years before the economy starts its recovery.

“I hope that we can start to really recover by next year, but it’s not guaranteed,” Shields said. “It could happen if there are no more bank-bailout type situations and everything can go smoothly.”

Waclawek said this has expanded to be more than just a problem in the U.S.

“It’s not just the nation’s future anymore, now there is a global economic downturn. When that turns around then Michigan will be able to,” Waclawek said.

metro@cm-life.com

E-mail the author: Chelsea White