Michigan's unemployment rate increased by 0.1 percentage points to 5.3 percent in January. While this increase might seem minor, it contrasts with a decrease in the national unemployment rate, which fell to 4.0 percent. Rising in tandem with the unemployment rate, the state's workforce expanded as both total employment and unemployment grew by 6,000, as per data from the Michigan Department of Technology, Management & Budget.
Wayne Rourke, the labor market information director at Michigan’s Center for Data and Analytics, noted the dual increase in January's unemployment rate and overall labor force. With an influx of 12,000 to the workforce, Michigan businesses faced an increase in payroll jobs. Attributing to these workforce dynamics, annual data revisions by the Bureau of Labor Statistics bumped Michigan's 2024 annual average jobless rate up to 4.7 percent.
At the local level, the Detroit-Warren-Dearborn Metropolitan Statistical Area recorded a seasonally adjusted unemployment rate increase of 0.1 percentage points, reaching 5.1 percent. The region’s workforce grew by 5,000 in January. However, on a year-over-year basis, the Detroit area saw a workforce decline of 2,000 from January 2024 to January 2025, with a net employment loss of 31,000 and an increase of 28,000 in unemployment.
Examining industry trends, the monthly survey of employers reflected a 0.2 percent increase in seasonally adjusted nonfarm employment, which equates to about 9,000 new jobs in January, and a job total of 4,518,000, said the state's labor department. Particularly noteworthy, private education and health services led with gains, bringing an additional 7,000 jobs. Yet, manufacturing faced the steepest losses, declining by 0.6 percent over the month and 3.2 percent over the year. Despite these fluctuations, total nonfarm jobs in Michigan climbed by 45,000, or 1.0 percent, since last year.
The labor data reflects a complex job market influenced by various factors affecting employment and industry sectors. The annual data revision process adjusts previous metrics and informs current and future workforce strategies. The latest revised data is available at www.milmi.org/datasearch for further details.
