The Collegian

Issue date: 1/22/09 Section: Beyond

Already high levels of unemployment will likely increase statewide and in Hillsdale County in upcoming months, analysts say.

"At best, the [state] Legislature is going to shift the deck chairs on the Titanic," said Michael LaFaive, director of fiscal policy for the Mackinac Center for Public Policy, a Michigan think tank. "If history is any guide, Michigan will continue to become Detroitified - that is, a continued hollowing out of the private sector while the state government stays relatively fat and happy."

Michigan's unemployment rate stands highest in the country at 9.6 percent and, LaFaive said, will likely hit 11 percent this year. Hillsdale County has already beaten that forecast with an 11.5 percent unemployment rate, according to the Michigan Department of Labor.

That's 25th lowest of 82 counties total, meaning Hillsdale ranks in the worst one-third of Michigan for unemployment.

Suffering Hillsdale businesses account for much of the job loss. Several have closed or laid off workers.

"Businesses have certainly had to buckle down on expenses, which does translate into layoffs," said Karri Doty, executive director of the Greater Hillsdale Chamber of Commerce. "Some of our members had a really good December. For others, it wasn't so great."

Now, 2,519 workers in the county cannot find work. And jobs have disappeared from every type of employment, not merely one in particular, Doty said.

Long-time Hillsdale resident and radio host Charles "Chopper" Ferguson, 51, said Hillsdale's past makes him optimistic about its future, despite the current economy.

"Right now for this community is the ultimate time to get rid of the turf problems we have, like you up the hill and me down here and the hospital over there," he said. "You can write about the economy all you want, but it doesn't cover what this community has seen in the past."

Considering Barack Obama's new administration and its promises to Michigan, help may come soon, Ferguson said.

"We are going to have billions in growth money and grant money, and we need to be able to take advantage of that," Ferguson said.

But LaFaive predicted the economic distress will only deepen unless the Michigan Legislature breaks its current trend and stops raising its current major barriers to growth: high taxes, high regulation and labor union support.

"It is not a coincidence that Michigan, with the highest unemployment rates, had the highest population loss in the last census," LaFaive said.

Most Michigan deserters depart for Florida, among other warm states. Even harsh, drippy Michigan winters push migration, LaFaive said, so the state should fight to overcome this variable with an inviting economic climate.

"I think there's something more than ideology taking place," LaFaive said. "We have here class warfare between the government class and the people who pay their bills."

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