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Michigan/Indiana Labor Market Review Summary — June 2026

June 15, 2026

mmorey

Hello Friends,

I hope this message finds you well and that your summer is off to a great start.

As always, we appreciate the conversations many of you continue to have with our team regarding hiring trends, workforce planning, retention strategies, and the overall economic outlook across our region.

Attached are our latest Labor Market Reviews highlighting April 2026 labor market data released in June 2026 for Indiana and Michigan, along with a summary of national labor market trends.

Executive Summary:

April data reflects continued strength across much of our regional labor market. Indiana unemployment declined significantly and remains among the strongest in the Midwest, while both the Elkhart-Goshen and South Bend-Mishawaka markets experienced improving unemployment rates and modest payroll gains. Michigan remained relatively stable, with payroll job growth and gradual improvement in regional unemployment rates, despite some softening in labor force participation. Nationally, hiring remains measured but steady as employers balance growth opportunities with ongoing economic uncertainty.

Please note: State-level data reflects April 2026 activity (released in June 2026), while national economic and labor indicators reflect the most current information available at the time of this reporting.

Indiana – April 2026

Unemployment

  • Indiana unemployment rate declined to 2.8%, down from 3.6% in March.
  • Indiana continues to remain among the strongest labor markets in the Midwest and remains well below the national unemployment rate.

Elkhart-Goshen MSA

  • Unemployment rate: 2.7% (down from 3.5% in March)
  • Labor Force: 98,858
  • Employed: 96,180
  • Professional & Business Services, Construction, Leisure & Hospitality, and Wholesale Trade showed month-over-month gains.

South Bend-Mishawaka MSA

  • Unemployment rate: 3.2% (down from 4.0% in March)
  • Labor Force: 151,879
  • Employed: 147,037
  • Growth was supported by Professional & Business Services, Retail Trade, Educational Services, and Food Service establishments.

Michigan – April 2026

Unemployment

  • Michigan unemployment rate remained steady at 5.0%.
  • Michigan added approximately 5,300 payroll jobs during April.
  • Labor force participation declined slightly to 60.1%, continuing a trend that employers should monitor.

Kalamazoo-Portage MSA

  • Unemployment rate: 3.9% (down from 4.1% in March)
  • Labor Force: 132,300
  • Employed: 127,200
  • Professional & Business Services and local service sectors contributed to steady labor market conditions.

Battle Creek MSA

  • Unemployment rate: 4.7% (down from 5.2% in March)
  • Labor Force: 60,600
  • Employed: 57,700
  • Labor market conditions continue to improve as unemployment trends move lower year-over-year.

Niles/Berrien County

  • Unemployment rate: 4.5% (down from 5.1% in March)
  • Employment conditions continue to improve compared to both last month and one year ago.

U.S. Labor Market Snapshot – May 2026

  • S. unemployment rate remained steady at 4.3%.
  • Employers added approximately 172,000 jobs in May, led by healthcare, construction, leisure & hospitality, and government.
  • Wage growth remains positive but continues to moderate compared to prior years.
  • Inflation rose to 2% in May, up from 3.8% in April. Inflation is now a growing concern for policymakers and could influence rate decisions.
  • Hiring remains selective, with employers continuing to focus on productivity, retention, and workforce planning. 

What This Means for Employers

  • Indiana continues to present one of the most competitive hiring environments in the country, while unemployment declines across Elkhart, South Bend, Kalamazoo, and Battle Creek suggest continued competition for skilled talent throughout our region.
  • Although hiring conditions have become more balanced than the labor shortages experienced in recent years, attracting and retaining quality talent remains a priority for many employers.
  • The labor market remains resilient despite ongoing economic uncertainty, with healthcare, manufacturing, construction, and skilled trades continuing to experience the greatest demand for talent.
  • Wage pressures remain present but have become more manageable, allowing organizations to focus on long-term workforce strategies rather than reactive hiring practices.
  • Labor force participation remains an important metric to watch, particularly in Michigan, where available talent pools continue to be constrained.
  • Organizations that remain proactive in recruiting, onboarding, employee development, engagement, retention, and workforce planning will be best positioned for success throughout the remainder of 2026.

Further Reading (Free & Public Sources)

If you would like to discuss how these trends may impact your workforce strategy, hiring plans, compensation structure, or overall business outlook for the remainder of 2026, we would welcome the conversation.

Thank you again for your continued partnership and trust.

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