Michigan/Indiana Labor Market Review Summary — September 2025

September 9, 2025

Jacqueline Barton

Below is your September Labor Market Review Summary for Michigan and Indiana, summarizing the latest employment data and economic trends shaping the U.S., Indiana, and Michigan.

Note: State-level data (Indiana and Michigan) is reported on a two-month delay and reflects July 2025 activity. National figures reflect the most current data available as of August 2025. Attached are detailed LMR reports for both Indiana and Michigan.

Labor Market Reviews

Labor Market Review | Indiana – View
Labor Market Review | Michigan – View

Indiana – July 2025

Unemployment

July rate: 3.4% (unchanged from June | ↓ 0.5 pts from July 2024)

Job Growth

+3,100 new jobs from June to July

+21,000 jobs year-over-year

Growth sectors:

Leisure & Hospitality: +5.2%

Construction: +3.2%

Private Educational & Health Services: +1.5%

Declines in:

Transportation Equipment Manufacturing: –2.3% YoY

Retail Trade: –1.1% YoY

READ THE REPORT: Labor Market Review | Indiana – View

Michigan – July 2025

Unemployment
- July Rate: 5.3% (unchanged from June | ↑ 0.5 pts from July 2024)
- Jobless rate increased in 15 of 18 regional markets
- All 83 counties saw rates equal to or higher than last year
Job Growth
- 2,900 net payroll jobs in July (after a loss of 5,800 in June)
- Private sector added +300 jobs
- Over the past year: +57,500 net payroll jobs
Employment & Participation
- Labor force participation fell to 61.6%
- Total employment declined by 4,519
- State ranks 33rd nationally in labor force participation

READ THE REPORT: Labor Market Review | Michigan – View

U.S. Labor Market – August 2025

Unemployment

Rate: 4.3% ( ↑ 4.2%from July)

Jobless count: ~6.9 million Americans

Job Growth

+187,000 non-farm payroll jobs added in August

Key sector gains:

Healthcare: +63,000

Construction: +22,000

Social Assistance: +18,000

Manufacturing remained flat

Wages & Work Hours

Average hourly earnings: ↑ 4.3% YoY

Average workweek: 34.3 hours (unchanged)

Inflation

July CPI: ↑ 3.2% YoY

Core CPI (excl. food & energy): ↑ 4.7% YoY

Key driver: Shelter costs continue upward

Interest Rates

Federal Funds Rate: Held steady at 5.25%–5.50% (as of July 31)

Fed Chair Jerome Powell signaled potential for another hike if inflation persists

Labor Market Insight

Job growth remains moderate but stable

Economists signal a “cooling but resilient” labor market with slowdown in job-switching and openings