Grand Rapids, Mich. (WZZM)- Michigan's unemployment rate went up again last month and is now 15.2% The state counted 740,000 out-of-work people this June. It is the highest on record and is expected to go much higher. Thursday, US Congressman Pete Hoekstra criticized state leaders for not attracting enough new businesses and jobs to Michigan.
"A state with an unemployment rate that is consistently the worst in the nation clearly needs a new strategy on attracting investment," Hoekstra said. "Michigan's families and employers continue to look elsewhere as they struggle through the economic crisis, and Lansing needs to immediately work to reverse that trend."
Peter Perez owns Carter Products, a woodworking machinery manufacturing company in Grand Rapids and sits on the board of directors for The Right Place, a economic development organization serving the city.
Perez says while "there is no question Michigan is going through some difficult times" progress is being made.
"If you look at the released statistics on jobs, we have maybe 3/4 of a million jobs that have disappeared in this economy but, The Center for Michigan's Transformation released numbers today that shows there has been an increase of 300,000 jobs," he said adding that he believes certain parts of the Michigan are doing exceptionally well. "I think west Michigan continues to be a beacon of light in the state. West Michigan must be a part of the solution by working with Lansing and working with Detroit."
Perez says he thinks problems in the auto sector is the primary cause of Michigan's soaring unemployment numbers. But, he says while that industry was contracting others have been emerging.
"What we are starting to see is less manufacturing jobs and more small business startups and entrepreneurial jobs," said Perez.
Michigan is also seeing, and depending on, so-called "growth industries" like advanced technology, green industries and health sciences.
In fact, The Department of Labor and Economic Growth reports Education and Health Services was the only sector that showed job gains this year.
"The new economy is going to be innovation and education based," said Perez.
He said the region's colleges and universities has over 50,000 students that can be used to help attract new companies.
"We have a wonderful pool of talent here in West Michigan so we so we can point to our trained and capable workforce. This state is a state of opportunity that is temporarily on pause. But with all the wonderful resources of this state, this is a place where young people can make their career," he said.
Perez says members of The Right Place use that as a selling point when courting companies, and it works.
"In the past 5 years they have attracted 8,000 and $460 million in new investment. And in this year, 2009, which I think all would agree was a very, very difficult year, they've already attracted 3,600 jobs and $185 million in investment," he said. "We can point to companies like Roskam Baking who announced over 1,000. The Farmers Insurance Group, another 1,000 plus jobs will be added to this region. And, it was a really exciting announcement to hear that Priceline.com was coming to this area."
Approximately a dozen companies have announced plans to expand or relocate their businesses to West Michigan this year. The number of employees those companies hire don't compare to the large amount historically employed by automotive companies. However, Perez says addition of those companies have kept the unemployment picture from looking worse and helps to move Michigan in the right direction.
He also said he believes Governor Jennifer Granholm making efforts, with several recent trips abroad to attract foreign businesses to the state.
"The new economy will be the success story for Michigan's future," he said.
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