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Michigan/Indiana Labor Market Review Summary — January 2026

January 30, 2026

Jacqueline Barton

Happy New Year! I hope this message finds you in good spirits as we embark on 2025. Please find the latest Labor Market Review and economic updates for Indiana and Michigan, along with national data for December 2025. Note that state-level data reflects November 2025, as state reports are typically released two months in arrears. 

Indiana & Michigan Employment 

Indiana: 

  • Labor Force and Employment: 
    As of November 2024, Indiana’s labor force reached a record high of 3,448,603, with an unemployment rate of 4.2%. 
  • Sector Performance: 
    Trade, transportation, and utilities sectors showed strong growth with an increase of 400 jobs in the South Bend-Mishawaka MSA. However, durable goods manufacturing experienced declines, reflecting broader industry challenges​. 

Michigan: 

  • Labor Force and Employment: 
    Michigan added 6,500 net payroll jobs in November, while the unemployment rate rose to 4.8%. The labor force participation rate remained steady at 62.2%. 
  • Sector Performance: 
    Michigan’s private sector added 4,900 jobs, led by gains in the trade, transportation, and utilities sector (+7,000 jobs). However, the leisure and hospitality sector faced declines (-12,000 jobs)​ 

National Monthly Job Increases 

  • Total Increases: 
    The U.S. economy added 256,000 nonfarm payroll jobs in December 2024, exceeding economists’ expectations of 164,000. 
  • Differences Month-over-Month: 
    December’s gains reflect an increase from November’s addition of 227,000 jobs, signaling continued strength in the labor market. 
  • Industries with the Most Growth and Downturn: 
  • Growth: Health care (+46,000 jobs), retail trade (+43,000 jobs), and government and social assistance sectors. 
  • Downturn: Building material and garden equipment and supplies dealers lost 11,000 jobs. 

National Unemployment Rate 

  • Monthly Rate: The unemployment rate edged down to 4.1% in December 2024, a slight improvement from November’s 4.2%. 
  • Year-over-Year Comparison: This rate is higher than the 3.7% recorded in December 2023. 
  • Significant Information: The unemployment rate remained under 4.0% for 27 consecutive months until June 2024, when it rose above this threshold. 

National Economy 

  • Interest Rates: The Federal Reserve cut interest rates by 25 basis points in December 2024, marking the third consecutive reduction aimed at bolstering economic growth. 
  • Inflation: The Consumer Price Index (CPI) rose by 0.3% in December, resulting in a year-over-year increase of 2.7%. 
  • Other Economic Factors: New tariffs and immigration policies continue to shape labor force dynamics and inflation trends. 

Links 

Economy: 

Labor 

 

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