As we navigate through the fifth month of 2025, it’s crucial to stay informed about the latest workforce and economic trends. This month’s Labor Market Review provides a comprehensive overview of key developments across the U.S., Indiana, and Michigan. From unemployment rates to job growth and sector-specific changes, this review offers valuable insights to help you understand the current labor market dynamics. Whether you’re a business leader, an economist, or simply interested in economic trends, this detailed analysis will keep you updated on the latest data and its implications.
Please note: State-level data (Indiana and Michigan) is reported on a two-month delay and reflects March 2025 activity, while national data reflects the most current information available as of April 2025.
Indiana
Unemployment
- March rate: 4.1% (↓ 0.4 pts from February | ↓ 0.2 pts from March 2024).
Job Growth
- +1,000 jobs from February to March (↑ +0.8%).
- Flat job growth year-over-year (+100).
Industries with most March growth:
- Construction: +2.4%
- Professional & Business Services: +2.1%
- Leisure & Hospitality: +2.9%
Industries with decline:
- Transportation Equipment Manufacturing: -3.0%
- Retail Trade: -1.0%
MICHIGAN
Unemployment
- March rate: 5.7% (↓ 0.3 pts from February | ↑ 1.4 pts from March 2024).
- Jobless rates decreased in 16 of 18 regions, with the Monroe MSA seeing the biggest monthly drop (-0.9 pts).
Job Growth
- -4,700 jobs in March (after gaining 1,200 in February).
- +24,000 net jobs year-over-year.
Industries with March growth:
- Leisure & Hospitality: +5,000
- Construction: +3,000
Private sector:
- -6,300 jobs in March; still +19,000 over 12 months.
U.S. Labor Market – April 2025
Unemployment
Held steady at 4.2% (unchanged from March)
Approximately 7.2 million Americans remain unemployed
Job Growth
- +177,000 nonfarm payroll jobs added in April
Growth by sector:
Healthcare: +51,000
- Transportation & Warehousing: +29,000
- Financial Activities: +14,000
- Social Assistance: +8,000
- Federal government jobs declined by 9,000
Interest Rates & Federal Reserve Activity
- On May 7, 2025, the Federal Reserve announced it would maintain the federal funds target rate at 4.25%–4.50%, marking the third consecutive meeting without a rate change.
- The decision reflects the Fed’s cautious approach amid rising economic uncertainty, particularly due to escalating trade tensions and their potential impact on inflation and employment.
Inflation
- As of March 2025, the Consumer Price Index (CPI) increased by 2.4% year-over-year, down from 2.8% in February.
- This marks the smallest annual increase since September 2023.
- Notably, energy prices declined, contributing to a 0.1% monthly decrease in the overall CPI.
- However, economists caution that ongoing trade tensions and new tariffs could reverse this trend in the coming months.
Trade Policy & Economic Outlook
- The U.S. has implemented significant tariff increases, including a 145% tariff on Chinese imports and a 10% tariff on most other imports.
- In retaliation, China raised tariffs on U.S. goods to 125%.
- These developments have raised concerns about potential increases in consumer prices and disruptions to global supply chains.
Market Volatility
Financial markets have experienced heightened volatility in response to escalating trade tensions.
Major stock indices have seen significant fluctuations, and investor sentiment remains cautious amid uncertainties surrounding trade policies and their potential impact on economic growth.
Labor Market Reviews
National Economic References for Further Reading
- Employment Situation Summary – 2025 M04 Results – View
- US labor market resilient ahead of tariff turbulence | Reuters – View
- U.S. Employers Added 177,000 Jobs in April, Report Shows Unemployment Stayed at 4.2% – WSJ – View
- US adds surprisingly strong 177K jobs in April despite tariffs – View
- The Guardian – Markets React to U.S. Jobs Report – View
- Tariff Tracker | RVIA – View
If you’d like to discuss how these trends may influence your workforce planning or business outlook, I’d be happy to connect.
– Jackeline Barton