Hillsdale unemployment still high but dropping

Hillsdale unemployment rate has dropped 2.3 percent from July 2009 to July 2010. A paltry drop from 19.2 percent, but it's a drop which may signal economic recovery in Hillsdale County.

Sarah Hartzeler, Community Relations Officer at South Central Michigan Works!, said the slow uptick in employment can be accredited to employers trying to stretch out their workers with minimal risk.

Hartzeler said while plants aren't hiring in large numbers, they are consistently picking up one or two workers on a monthly basis. Those workers will be working longer hours, too, she said.

Employees have the opportunity to work overtime at plants as employers seek to minimize the risk of taking on new employees only to let them go a few weeks later.

"Our unemployment rate is still fairly high," Director of Economic Development for Hillsdale Christine Bowman said. "Part of that is because companies can't raise the capital to add additional jobs."

Hartzeler said SCMW has seen the number of plant closings in Jackson and Hillsdale slow, and hasn't had to utilize its Rapid Response program, which responds when massive layoffs occur at manufacturing plants.

"Overall, we are seeing a positive outlook with quite a few workers who've gone back to work through our No Worker Left Behind program," Hartzeler said.

No Worker Left Behind grants underemployed or unemployed persons earning less than $45,000 a chance to re-educate themselves through state education grants and re-enter the workforce.

City Manager Michael Mitchell said Jackson Community College has been working with the city of Hillsdale in order to develop worker programs, which, if successful, may entice businesses to come to Hillsdale.

Another success, Mitchell said, was the Rental Rehab program, which has refurbished downtown apartments in order to cater to college students.

"What we see are people looking at completely different fields," Hartzeler said.

Hartzeler noticed that some re-educated people went back into manufacturing, but this time with training certificates in welding and other technical fields. More popular, she said, was the medical field which saw a pick-up in nursing, radiography and physical therapy.

Bowman said the Bob Evans manufacturing plant in Hillsdale is investing $1.3 million to change the plant from manufacturing to production and distribution after a plant closed in Gelva, Ill. The revamped plant will provide no new jobs, but it will keep all of its current positions. Bowman also said Martinrea International Inc., an automotive manufacturing company, recently refurbished and expanded a former SKD plant in Jonesville, doubling its number of employees to 235.

Bowman said one exception was small businesses raising capital, noting small banks and small businesses have been carefully supporting one another.

"At least it appears the bleeding seems to have stopped, and we're seeing a slight uptrend," Bowman said.