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Detroit's unemployment rate falls to lowest level in recorded history

Posted at 5:40 PM, May 31, 2023
and last updated 2023-05-31 17:40:53-04

DETROIT (WXYZ) — The city of Detroit says the unemployment rate has plunged to its lowest level in recorded history.

According to the Bureau of Labor statistics, Detroit’s unemployment rate in April was 4.2%. The city says that is the lowest the number has been since 1990 when the bureau began recording the data. That makes for a 33-year low. The previous record low unemployment rate for the city was in April 2000 at 5.4%.

“We have not seen this level of opportunity in our city since the late 1940s or early 1950s where anyone who wanted to work could find a job,” said Mayor Duggan in a release. “These new numbers show that when opportunity is available, Detroiters go to work.”

This comes after Detroit, like many other cities in the nation, saw record-high unemployment rates during the pandemic. In April of 2020, the city recorded an unemployment rate of 37.2%.

Despite the positive trend now, small business owners say they still face unique hiring challenges.

"People have a lot of choices," said Nadia Nijimbere who owns Baobab Fare on Woodward with her husband.

Baobab Fare opened in the New Center area two years ago. The restaurant is known for Burundian cuisine.

"The community has been so supportive. We are so really happy and proud to be here," said Nijimbere. "What keeps people coming back, I can't call it only good food. It’s our mission. We are here not only to serve good food, healthy food (but) to share about our culture."

Nijimbere says they've been able to create a solid team but are still working to fill some roles like a dishwasher. She says while they have seen many applications for open roles, it’s been difficult for many restaurants to retain employees.

"Sometimes we have some people that apply. You do the interview. Everything is good. You train them then after a couple weeks or months they leave," said Nijimbere.

Godwin Ihentuge is the owner at Yum Village on Woodward. At the restaurant, customers can find Afro-Carribean meals.

"We are also known as the only place that authentically cooks jerk chicken. We wood smoke it and then grill finish it," said Ihentuge.

Ihentuge says since opening in 2019, he's noticed a shift in the workforce as a whole.

"I think it was one in three people within their lifetime worked within the restaurant industry but now because of the pandemic, because of the switch to more remote-focus work you really have to now compete with other industries," he said. "There’s a great migration out of the restaurant industry."

Ihentuge says he's noticed a lot more people getting into "gig working" like delivery driving or ride-share services. He says workers are more often looking for flexibility.

Ihentuge says across his four locations, he currently has enough staff to get by but they've had to adjust hours and close locations for the evening as staffing shortages arise. They're now working to hire people for events, prep cooks, and drivers.

Both businesses say to keep more staff they started offering more competitive wages and have worked to make sure the employee was a good fit. They say a successful hire these days just requires some compromise.

"Now you’re not hiring employees so much as you’re hiring partners to work within your establishment," said Ihentuge.