Michigan unemployment rate advances during March

LANSING, Mich. – Michigan’s seasonally adjusted unemployment rate rose by one-tenth of a percentage point to 5.5 percent in March, according to data released today by the Michigan Department of Technology, Management & Budget. Statewide employment receded by 3,000, while total unemployment rose by 5,000 during March. The statewide workforce increased by 3,000 over the month.

“Michigan’s unemployment rate increased for the third consecutive month during March,” said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics. “Payroll jobs declined this month led by losses in the manufacturing and professional and business services sectors.”

The national jobless rate increased by one-tenth of a percentage point to 4.2 percent in March. Michigan’s March unemployment rate was 1.3 percentage points above the U.S. rate. Over the year, the national jobless rate rose by 0.3 percentage points, while Michigan’s rate advanced by 1.3 percentage points since March 2024.     

Labor force trends and highlights

• Michigan’s first quarter 2025 average unemployment rate was 5.4 percent, 0.2 percentage points above the average jobless rate from the prior quarter.
• Total statewide employment receded by 0.1 percent during March, contrary to the 0.1 percent advance in employment levels seen nationally.
• The statewide labor force rose by 1.2 percent over the year, four-tenths of a percentage point below the national workforce gain (+1.6 percent).
• The March statewide labor force participation rate was unchanged over the month at 62.0 percent. Michigan’s employment-population ratio decreased by 0.1 percentage point to 58.6 percent during March.

Detroit metro area jobless rate increases during March

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) seasonally adjusted unemployment rate rose by one-tenth of a percentage point to 5.3 percent during March. The region’s labor force increased by 3,000 over the month.

Over the year, the Detroit MSA unemployment rate advanced by 1.3 percentage points. Employment receded by 22,000 and unemployment increased by 29,000 over the year. The Detroit region’s labor force rose modestly by 6,000 since March 2024.  

Michigan payroll employment decreases in March

According to the monthly survey of employers, Michigan seasonally adjusted nonfarm payroll jobs decreased by 5,000 between February and March, resulting in a job total of 4,510,000.

Industry employment trends and highlights

• Total nonfarm employment in Michigan declined during March after four consecutive months of payroll job gains.
• Despite minor employment gains across multiple industries, total payroll jobs decreased due to over-the-month employment losses in the manufacturing (-5,000) and professional and business services (-4,000) sectors.
• The state’s government sector demonstrated the largest over-the-month employment increase, with jobs advancing by 2,000 in March.
• On a seasonally adjusted basis, statewide nonfarm payroll jobs rose by 24,000, or 0.5 percent, since March 2024.
• On a numerical basis, the most pronounced over-the-year industry job gains occurred in private education and health services (+21,000) and leisure and hospitality (+7,000).
• Statewide quarterly average nonfarm employment advanced by 13,000, or 0.3 percent, since fourth quarter 2024.