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The U.S. Department of Labor reported that Michigan's unemployment rate in 2009 rose to 15.2%, becoming the first state in 25 years to suffer an unemployment rate exceeding 15%. Michigan has been battered by the collapse of the auto and housing industries, and has had one of the highest unemployment rates in the country over the past several years.
-Why is the reality of the unemployment problem in Michigan actually worse than the statistic of 15.2%?
-Is the increased unemployment frictional, structural, or cyclical? Please explain your answer.
-How has unemployment changed in Michigan in the past decade?
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