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Michigan Labor Market Review – February 2025

February 13, 2025

Specialized Staffing

Michigan unemployment rate advances in December

Statistical Data Report for December, released February 2025

LANSING, Mich. – Michigan’s seasonally adjusted jobless rate rose by two-tenths of a percentage point over the month to 5.0 percent in December, according to data released today by the Michigan Department of Technology, Management & Budget. Employment receded by 11,000 over the month, while unemployment rose by 8,000, resulting in a workforce decline of 3,000 since November. 

“After three consecutive years of jobless rate declines, Michigan’s annual average unemployment rate rose during 2024,” said Wayne Rourke, labor market information director for the Michigan Center for Data and Analytics. “However, the state’s annual average labor force level and payroll jobs total both increased over the year.” 

The national unemployment rate receded by one-tenth of a percentage point to 4.1 percent during December. Michigan’s December unemployment rate was nine-tenths of a percentage point larger than the U.S. rate. Over the year, the national jobless rate advanced by three-tenths of a percentage point, while the statewide rate increased by 0.9 percentage points since December 2023.

Labor force trends and highlights

  • Michigan’s unemployment rate rose for the third consecutive month in December.
  • Michigan’s December jobless rate of 5.0 percent was the largest rate seen in the state since October 2021 (5.1 percent).
  • Total employment in Michigan fell by 0.2 percent over the month, while the national employment level advanced by 0.3 percent since November.
  • Michigan’s number of unemployed people increased by 21.7 percent over the year, a gain 12.7 percentage points larger than the growth in unemployed persons seen nationally (+9.0 percent).
  • The December statewide labor force participation rate was unchanged for the third consecutive month at 62.2 percent. Michigan’s employment-population ratio receded by one-tenth of a percentage point to 59.1 percent during the same period.

Source: Bureau of Labor Statistics, data is seasonally adjusted

Source: Bureau of Labor Statistics, data is seasonally adjusted

Michigan’s 2024 preliminary annual average labor force data

Michigan’s preliminary annual average unemployment rate in 2024 was 4.5 percent, sixtenths of a percentage point larger than the 2023 annual average rate of 3.9 percent. Total employment in Michigan averaged 4,821,000 in 2024, and there was an average of 228,000 unemployed people. The state’s annual labor force level was 5,049,000 during 2024.

Annual average trends and highlights

  • Michigan’s 2024 annual average unemployment rate rose for the first time after three consecutive years of drops in the annual jobless rate. 
  • The state’s 2024 average jobless rate was five-tenths of a percentage point larger than the preliminary national annual average unemployment rate for 2024 (4.0 percent). 
  • Annual average employment in the state rose by 9,000, or 0.2 percent, over the year, while the state’s average number of unemployed advanced by 33,000, or 16.9 percent. 
  • Michigan’s annual average workforce total in 2024 increased by 41,000, or 0.8 percent, over the year.

Michigan payroll employment increases during December

According to the monthly survey of employers, Michigan’s seasonally adjusted nonfarm employment increased by 6,000, or 0.1 percent, during December.

Industry employment trends and highlights

  • Nonfarm payroll jobs advanced for the fourth consecutive month in December, with employment increasing by 22,000, or 0.5 percent, since August 2024. 
  • Michigan’s leisure and hospitality sector observed the most significant over-themonth numerical employment gain during December (+3,000). 
  • Job losses in December were found in the manufacturing (-2,000) and construction (-1,000) sectors. 
  • Since December 2023, Michigan seasonally adjusted total nonfarm payroll jobs rose by 43,000, or 1.0 percent. 
  • The largest over-the-year numerical job gains occurred in the government (+18,000), construction (+14,000), and private education and health services (+12,000) sectors. 
  • Michigan’s annual average total employment rose for the fourth consecutive year in 2024. Over the year, Michigan average nonfarm payroll jobs increased by 39,000, or 0.9 percent.

Disclaimer

The above information was created and disseminated by the United States Congress Joint Economic Committee and the Michigan Department of Technology, Management, and Budget. Specialized Staffing does not hold any rights or ownership to this content.  For more information, please contact your Michigan Bureau of Labor Representative. 

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