Executive Summary:
December data reflects a stable but cooling labor market nationally, while Indiana continues to demonstrate exceptionally tight unemployment conditions. Michigan shows moderate payroll growth with some participation softness to monitor. Hiring is slowing nationally, but layoffs remain contained, creating a steady, selective hiring environment heading into spring.
Please note: State-level data reflects December 2025 activity (reported with a standard delay), while national data reflects the most current information available as of January 2026.
Indiana – December 2025
Unemployment
- December rate: 2.7% (↓ from 3.3% in November | ↓ from 4.0% in December 2024)
- Indiana recorded one of the strongest year-over-year unemployment improvements nationally and continues to maintain one of the lowest unemployment rates among Midwestern states.
Job Growth
Elkhart–Goshen MSA
- December rate: 2.7% (↓ from 3.3% in November | ↓ from 4.4% in December 2024)
- Labor Force: 96,565
- Employed: 93,958
- Unemployed: 2,607
- Total nonfarm employment: 131,600
- Manufacturing remains soft year-over-year, particularly transportation equipment (-2.8%)
South Bend–Mishawaka MSA
- December rate: 3.2% (↓ from 3.7% in November | ↓ from 4.7% in December 2024)
- Labor Force: 154,979
- Employed: 149,950
- Unemployed: 5,029
- Total nonfarm employment: 144,000
- Local government and education contributed to modest gains
Note: Total nonfarm employment reflects payroll jobs located within the MSA, while labor force reflects how many people are in the workforce, differences are driven by commuting patterns and multiple job holders.
Industries with growth:
- Private Education & Health Services
- Professional & Business Services
- Construction
- Government (Local & Educational Services
Industries with decline or stagnation:
- Retail Trade
- Durable Goods Manufacturing
- Transportation Equipment Manufacturing
- Leisure & Hospitality (seasonal softening
Michigan – December 2025
Unemployment
- December rate: 5.0% (unchanged from November | ↓ from 5.2% in December 2024)
- +5,100 net payroll jobs added in December
- +33,800 jobs added over the past 12 months
- Participation rate dipped slightly to 61.0%.
Job Growth
Kalamazoo-Portage MSA
- December rate: 5.2% (↓ from 5.9% in November | ↑ from 4.7% in December 2024)
- Labor Force: 138,500
- Employed: 131,300
- Unemployed: 7,200
- Payroll gains were concentrated in government and health-related services, while manufacturing remains soft year-over-year
Battle Creek MSA (Calhoun County) – December 2025
- December rate: 6.3% (↓ from 7.4% in November | ↑ from 5.8% in December 2024)
- Labor Force: 64,400
- Employed: 60,400
- Unemployed: 4,000
- Government and education-related services contributed to seasonal stability, while manufacturing and retail remain soft year-over-year.
Industries with growth:
- Government
- Education & Health Services
- Construction
- Professional & Business Services (modest gains)
Industries with decline or stagnation:
- Retail Trade (seasonal softening)
- Manufacturing (select subsectors)
- Leisure & Hospitality (seasonal adjustment impact)
U.S. Labor Market – January 2026
Unemployment
- U.S. unemployment rate: 4.3% (↓ from 4.4% in December)
Job Growth
- +130,000 nonfarm payroll jobs added in January
- Job gains led by Healthcare & Social Assistance, Construction, and Manufacturing
Jobless Claims & Labor Signals
- Weekly initial jobless claims remained in the mid‑200,000 range
- Continuing claims are approximately 1.8 million
Wages & Labor Force Participation
- Wage growth remains positive but moderate
- Labor force participation steady near 62.4–62.5%
Inflation & Federal Reserve Policy
- Core inflation remains above target
- Federal Reserve continues to hold rates at 5.25–5.50%
Labor Sentiment & Broader Indicators
- Layoffs in select sectors (tech/logistics) remain modest
- Consumer confidence remains cautious but stable entering 2026
What This Means for Employers
- Indiana remains highly competitive for talent.
- Michigan shows moderate growth but softer participation.
- National hiring is stabilizing after a slower 2025.
- Wage pressure continues, though at a more sustainable pace.
- Proactive workforce planning will be key heading into spring hiring cycles.
Further Reading (Free & Public Sources)
Here are free, publicly accessible links to the most relevant labor and economic data:
Reuters – U.S. Weekly Jobless Claims & Labor Market News
US weekly jobless claims rise slightly; unemployment rate likely unchanged in February | Reuters
AP News – U.S. Jobless Benefits & Jobs Slowdown
A slight uptick in US jobless claims as layoffs stay relatively healthy | AP News
Hoosier Data
Hoosiers by the Numbers
Michigan Gov
Home
Bureau of Labor Statistics – CPI Summary & Jobs Data (latest releases)
Employment Situation Summary – 2026 M01 Results
State Employment and Unemployment Summary – 2025 M12 Results
If you would like to discuss how these trends may influence your recruiting plans, workforce strategies, or compensation planning heading into Q2, I would welcome the conversation.