April 10, 2025
The Office of Management and Budget defines a metropolitan statistical area as an area consisting of at least one urban area of 50,000 or more population, plus adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties. In 2025, the Traverse City metropolitan statistical area (MSA), consisting of Benzie County, Grand Traverse County, Kalkaska County, and Leelanau County, was introduced as a new MSA in Michigan. This promotion allows for new useful information for the region such as additional monthly workforce and payroll jobs data in Michigan's regional employment situation press releases, and occupation and wage data.
Unemployment trends in the Traverse City MSA have generally mirrored statewide trends. Both Michigan and the Traverse City metro area observed record-low rates in 1999 and 2000 and experienced historically high unemployment rates between 2009 and 2011. After peaking at 12.2 percent in 2010, the Traverse City metro area unemployment rate experienced nine consecutive years of annual declines until 2019, when the unemployment rate fell to 4.0 percent. As a result of the COVID-19 pandemic in 2020, the Traverse City MSA unemployment rate spiked to 9.0 percent. In recent years, annual average unemployment rates have shown signs of recovery, with rates decreasing steadily since 2020. In 2024, the Traverse City MSA’s unemployment rate averaged 4.3 percent. While this represented a slight increase from the previous year’s rate of 3.9 percent, the 2024 rate was nearly half the rate observed in 2020 (9.0 percent).
Annual Average Unemployment Rates in Michigan and the Traverse City MSA, 1990-2024
Source: Local Area Unemployment Statistics, U.S. Bureau of Labor Statistics
The labor force in the Traverse City MSA has shown notable growth since 1990, when the workforce totaled 57,100. It increased substantially between 1990 and 2000, before seeing relatively slow growth between 2000 and 2020. During the COVID-19 pandemic, the region’s labor force saw a period of decline until 2021, when levels fell to 75,400. The Traverse City metro area labor force quickly rebounded, surpassing pre-pandemic levels by 2022. The area continued to see its labor force advance, with levels reaching 82,400 in 2024, marking its highest recorded average labor force total.
Annual Average Workforce Levels in the Traverse City MSA, 1990-2024
Source: Local Area Unemployment Statistics, U.S. Bureau of Labor Statistics
Annual nonfarm payroll employment in the Traverse City MSA increased by 1,200, or 1.7 percent, reaching a total of 71,600 jobs in 2024. This marked the highest average payroll job level ever recorded in the Traverse City metro area since the data series began. Payroll jobs have continued to increase in the area since the lows of 2020 but slowed in recent years. The area’s payroll job growth rate of 1.7 percent in 2024 was down from the 2.6 percent growth in 2023 and was significantly below the 5.1 percent growth seen in both 2021 and 2022. After four consecutive years of average payroll job growth, the Traverse City MSA has surpassed both pre-pandemic average payroll employment and the previous historical high of 68,000 in 2019.
In 2024, more than 50.0 percent of all total nonfarm payroll jobs in the Traverse City MSA were concentrated within three major sectors: Private education and health services (19.6 percent); Trade, transportation, and utilities (18.0 percent); and Leisure and hospitality (14.1 percent). These three industries have dominated the Traverse City metro area’s labor market for the past decade.
Annual Average Total Nonfarm Payroll Jobs in the Traverse City MSA, 1990-2024
Source: Current Employment Statistics, U.S. Bureau of Labor Statistics
In 2024, several key industries recorded notable annual average job growth in the Traverse City MSA. On a percent basis, the most significant increase in employment was seen in the Other services sector, with a growth rate of 7.1 percent over the year. This increase far outpaced job growth in other industries including Mining, logging, and construction (+5.7 percent); Professional and business services (+3.8 percent); and Leisure and hospitality (+3.1 percent). Meanwhile, average employment within Financial activities (-2.3 percent); Manufacturing (-1.7 percent); and Trade, transportation, and utilities (-1.5 percent) declined between 2023 and 2024.
Annual Average Job Change by Industry Sector in the Traverse City MSA, 2023-2024
Source: Current Employment Statistics, U.S. Bureau of Labor Statistics
There were over 5,200 private firms in the Traverse City MSA during the second quarter of 2024. Small firms (less than 50 employees) comprised 96.0 percent of these firms, while medium firms (50-599 employees) made up 3.9 percent. There were less than 10 large firms with over 500 employees, making up only 0.1 percent of the region’s private firms in the second quarter of 2024.
Among the Traverse City MSA's small firms, 13.5 percent belonged to the Construction industry, followed closely by 13.2 percent in Retail trade and 11.2 percent in Professional, scientific, and technical services. The Accommodation and food services sector accounted for the greatest number of medium-sized firms at 21.7 percent. The industry make-up of medium-sized firms within the Traverse City metro area was also largely concentrated within Health care and social assistance (15.8 percent) and Manufacturing (14.3 percent).
Second Quarter, 2024
| Firm Size | Employment | Number of Firms* | Share of Firms |
| Small | Less than 50 | 5,060 | 96.0% |
| Medium | 50-499 | 200 | 3.8% |
| Large | 500+ | 10 | 0.2% |
Source: Quarterly Census of Employment and Wages, Michigan Center for Data and Analytics
*Rounded Data
The Traverse City MSA’s labor market has made remarkable strides in recent years. By 2024, the average unemployment rate was 4.3 percent, well below the peak jobless rate during the pandemic. The Traverse City metro area reached its highest workforce level of 82,400 in 2024. Similarly, the Traverse City MSA saw the greatest average payroll jobs level in its history (71,600) over the same period.
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