Michigan’s labor market is under increasing strain, with official unemployment figures rising sharply over the past year. While the headline numbers already paint a concerning picture, a closer look at the data and underlying trends suggests the employment situation may be even more precarious than these statistics reveal.
Latest Unemployment Statistics
Michigan’s seasonally adjusted unemployment rate was 5.5% in April 2025, up from 4.4% a year earlier—a significant 1.1 percentage point increase.
This rate is 1.3 percentage points higher than the national average of 4.2%, making Michigan’s jobless rate the second highest in the nation after Nevada.
The state’s labor force shrank slightly by 0.1% in April, while employment levels remained essentially flat.
Over the past year, the number of unemployed Michiganders rose by 26.4%, compared to a 10.4% increase nationally.
Regional Disparities Hide Deeper Problems
Unemployment is not evenly distributed across Michigan:
- Mackinac County recorded a staggering 17.9% unemployment rate in April 2025, while Livingston County had just 2.7%.
- Wayne County, home to the largest labor force in the state, posted a 4.5% rate.
Many rural and northern counties are experiencing double-digit unemployment, reflecting the collapse of local industries and seasonal employment fluctuations.
| County | Unemployment Rate (April 2025) |
|---|---|
| Mackinac | 17.9% |
| Cheboygan | 13.9% |
| Oscoda | 12.3% |
| Livingston | 2.7% |
| Wayne | 4.5% |
Why the Official Numbers May Understate the Crisis
The official unemployment rate only counts those actively seeking work. It does not include:
- Discouraged workers who have stopped looking for jobs due to lack of opportunities.
- Underemployed individuals working part-time but seeking full-time work.
- People who have left the labor force entirely, including early retirees and those unable to find jobs in their field.
Moreover, Michigan’s labor force participation rate lags behind the national average, and employment growth has stalled even as the national job market continues to expand. The state’s employment actually edged down by 0.2% over the past year, while the U.S. saw a 1.5% increase.
Economic Outlook: More Challenges Ahead
Forecasts suggest Michigan’s unemployment rate could peak at 6.0% in the first half of 2026 before declining slightly.
The state faces additional headwinds from slowing national growth, new tariff regimes, and persistent industrial restructuring.
All 83 Michigan counties saw their unemployment rates rise over the past year, highlighting the widespread nature of the downturn.
Conclusion
Michigan’s official unemployment rate of 5.5% in April 2025 is among the highest in the nation and has risen much faster than the U.S. average over the past year. However, this figure likely understates the true scale of economic distress, as it fails to capture discouraged workers, underemployment, and regional disparities. With forecasts pointing to further increases and continued economic headwinds, the state’s labor market challenges are likely to persist—and may be even more severe than the headline numbers suggest.