Sen. Barack Obama held an early morning rally in Grand Rapids yesterday, drawing an estimated crowd of 16,000 people to Calder Plaza, where the Democratic presidential candidate delivered a 30-minute speech contrasting his economic proposals to those of his Republican challenger, Sen. John McCain.

“The unemployment rate here in Grand Rapids and other parts of this state is nearly double what it is across this country,” Obama said. “And a new jobs report is coming out tomorrow that experts predict will show our ninth straight month of job loss. McCain just two weeks ago said ‘the fundamentals of our economy are strong,’” he said. “Well, where I come from, the strongest fundamental of the economy is a job.”

According to Real Clear Politics, Obama is leading in statewide polling by an average of seven percentage points, and trending upward.

Just hours after Obama’s rally in Grand Rapids, the McCain campaign announced it was pulling out of Michigan in order to focus its efforts on more competitive battleground states such as Florida, Ohio and Wisconsin. Speaking on condition of anonymity, a McCain campaign official in Grand Rapids told this reporter that he was “unfortunately not allowed to give…any information on that.” He declined to characterize the move as a complete pull-out, noting that some staff will remain in the state.

It was announced today that both the McCain campaign and the Republican National Committee have decided to suspend all future TV and radio advertising on behalf of McCain in Michigan.

The move all but concedes Michigan’s 17 electoral votes to Obama. The state hasn’t voted Republican in a presidential election since 1988, but many Republican strategists believed McCain had a shot. According to the McCain campaign, staff and resources in Michigan will be “shifted” elsewhere.

“It’s not good news,” said Michigan McCain campaign Co-chair Charles Yob in an interview with the Grand Rapids Press. The anticipated loss of Michigan tightens the already difficult battleground electoral math for McCain.

According to Andrew Romano of Newsweek, “The truth is, without Michigan - which the campaign has now all but admitted it will lose - it’s very difficult to see how McCain can emerge victorious on Nov. 4.”

Speculation grew today that the McCain campaign was considering a similar move in Pennsylvania, which has also been trending Democratic.

The McCain campaign has cancelled all future candidate appearances in Michigan. On Monday, Obama will visit Ypsilanti, where he will appear alongside rock legend and Democratic activist Bruce Springsteen.