Michigan jobless rate increases in February

LANSING, Mich. – Michigan’s seasonally adjusted unemployment rate rose by one-tenth of a percentage point to 5.4 percent in February, according to data released today by the Michigan Department of Technology, Management & Budget. Total employment in the state edged up by 2,000, while unemployment increased by 6,000 over the month. Michigan’s workforce advanced by 7,000 during February.

“The state’s unemployment rate has gone up slightly in the first two months of the year, mainly due to a rise in the number of unemployed people,” said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics. “The size of the state’s labor force and number of payroll jobs have also increased in both January and February.”

The national unemployment rate increased by one-tenth of a percentage point over the month to 4.1 percent. Michigan’s February rate was 1.3 percentage points above the U.S. rate. Over the year, the national jobless rate rose by 0.2 percentage points, while Michigan’s rate advanced by 1.4 percentage points since February 2024.     

Labor force trends and highlights

• Michigan’s unemployment rate rose for the second consecutive month, advancing by 0.2 percentage points since December 2024.
• Michigan’s total number of employed people was nearly unchanged over the month, while the national employment total receded by 0.4 percent during February.
• The statewide labor force rose by 1.3 percent over the year, a gain 0.4 percentage points lower than the workforce gain seen nationally (+1.7 percent).
• The February statewide labor force participation rate was unchanged over the month at 62.0 percent. Michigan’s employment-population ratio also remained unchanged at 58.7 percent during February.

Detroit metro area unemployment rate advances in February

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) seasonally adjusted unemployment rate increased by one-tenth of a percentage point to 5.2 percent during February. The region’s labor force rose by 5,000 over the month.

Over the year, the Detroit MSA jobless rate advanced by 1.4 percentage points. Employment was reduced by 26,000 and unemployment advanced by 30,000 over the year. The Detroit region’s labor force edged up by 3,000 since February 2024.  

Michigan payroll employment stable in February

According to the monthly survey of employers, Michigan seasonally adjusted nonfarm jobs were nearly unchanged over the month, inching up by 1,000 since January. Employment declines were seen across multiple Michigan industries during February.

Industry employment trends and highlights

• Michigan’s manufacturing sector recorded payroll job gains (+7,000) following four consecutive months of declining employment in this industry.
• The state’s private education and health services and leisure and hospitality services sectors demonstrated the largest over-the-month employment decrease in February, with jobs receding by 3,000 in each industry.
• Employment within trade, transportation, and utilities declined for the fourth consecutive month, with jobs decreasing by 2,000 since October 2024.
• Statewide nonfarm payroll jobs rose by 35,000, or 0.8 percent, since February 2024.
• On a numerical basis, the most pronounced over-the-year industry job gains occurred in private education and health services (+23,000) and government (+8,000).