Below is your August Labor Market Review Summary for Michigan and Indiana, summarizing the latest employment data and economic trends shaping the U.S., Indiana, and Michigan.
Note: Indiana and Michigan state-level data reflects June 2025 activity (due to a two-month reporting cycle), while national data is current through July 2025. Attached you’ll also find additional LMR summaries for our regions.
Indiana – June 2025
Unemployment
- June rate: 3.6% (▼ 0.1 pts from May | ▼ 0.6 pts from June 2024)
Job Growth
- Total non-farm employment rose by 8,500 jobs
- Year-over-year gain of 36,200 jobs (+1.1%)
Key industry highlights:
- Construction: +1,900 jobs
- Professional & Business Services: +1,300 jobs
- Leisure & Hospitality: +1,200 jobs
- Transportation & Warehousing: +900 jobs
Industries with losses:
- Retail Trade: –800 jobs
- Durable Goods Manufacturing: –600 jobs
Source: HoosierData.in.gov
READ THE REPORT: Labor Market Review | Indiana – View
Michigan – June 2025
Unemployment
- June rate: 5.3% (▼ 0.1 pts from May | ↑ 0.7 pts YoY)
- 14 of 18 regions reported increased unemployment compared to the previous year
- Labor force participation declined slightly to 61.7%
Job Growth
- Michigan lost 9,000 payroll jobs in June
- Private sector: –8,500 jobs (though still up +42,000 over 12 months)
Gains in:
- Construction
- Education & Health Services
Declines in:
- Manufacturing
- Trade, Transportation & Utilities
READ THE REPORT:Labor Market Review | Michigan – View
U.S. Labor Market – July 2025
Unemployment
- Held steady at 4.2%
- Approximately 7.2 million Americans are unemployed
Job Growth
- +73,000 non-farm payroll jobs added (well below expectations)
Largest gains:
- Healthcare & Social Assistance: +48,000
- Construction: +22,000
- Manufacturing and retail showed stagnation or decline
- Previous months revised downward: May (+19,000) and June (+14,000)
Wages & Hours
- Average hourly earnings: +0.2% MoM | +3.7% YoY
- Slight dip in weekly hours suggests softening demand
Economic Outlook & Fed Activity
Inflation & Prices
- Consumer Price Index (CPI) for May rose 2.4% YoY
- Producer Price Index (PPI) for July jumped 0.9%, the biggest spike in 3 years
- Core CPI (excluding food and energy): +2.8%
Federal Reserve
- Fed held rates at 4.25%–4.50% in July
- A September rate cut is now likely amid softer job growth and slowing wage gains
Market Sentiment
- Markets are watching closely: job growth is cooling, but inflation remains sticky
- Investors are split as they wait for signals from Jackson Hole later this month
Labor Market Reviews
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