(The Center Square) – Michigan’s unemployment is the second highest nationally, according to the latest data from the U.S. Bureau of Labor Statistics.
With Michigan’s unemployment rate at 5.4% in May, Nevada is the only state with higher unemployment at 5.5%. Down just 0.1% from the previous month, 276,547 Michiganders remain unemployed.
This is the third month in a row that Michigan has held the second-worst position nationally. It also means that Michigan’s unemployment rate was more than 1% higher than the national average of 4.1%.
Republicans, who only recently gained control of the state House after a Democrat-held trifecta, are flagging this as a sign of the state’s economic stagnation.
“Numbers don’t lie. [Gov. Gretchen] Whitmer’s policies have failed Michigan workers,” said Senate Republican Leader Aric Nesbitt, R-Porter Township. “It’s time to cut taxes and reduce regulations so we can unlock Michigan’s potential.”
While much lower than points during crises like the 2009 economic crisis (14.3%) or the 2020 COVID pandemic (22.7%), it still is up from either pre-COVID numbers or in the post-COVID recovery period.
Republicans are hopeful the state can return to its economic boom of past decades.
“In 1950, Michigan had a nation-leading economy. We had the most manufacturing jobs, the highest per-capita income, and the lowest unemployment in America,” said Rep. Bryan Posthumus. “I believe that we can, and should, lead this country again.”
It has also become a key issue for many of the candidates running in the 2026 gubernatorial election in Michigan, which will be an open primary as current Democrat Gov. Gretchen Whitmer is term locked.
“Michigan is at a crossroads. Our unemployment rate ranks 49th out of 50 . . . we are also losing our loved ones to other states,” said Tom Leonard, a Republican and former Michigan House Speaker, who just recently announced his candidacy for governor. “A positive vision, hard work, and a lot of grit are what it’s going to take to turn this state around. We’re all in.”
So far, Democrats have had little to say about the state’s unemployment.
Currently, Michigan’s labor force participation rate is also lower than the national average, with some fluctuation month to month.
In May, the state had 61.9% labor force participation, placing it 33rd in the nation. By comparison, the national average was 62.4%, and top states were in the 70% range. This is according to the May 2025 report from the U.S Congress Joint Economic Committee.
Still, the Michigan Department of Labor & Economic Opportunity has applauded the state’s moves helping record-numbers of Michiganders find work in recent years, as previously reported by The Center Square.
Stephanie Beckhorn, director of LEO’s Office of Employment & Training, told The Center Square that they know more needs to be done.
“We know our work is never done,” she said. “We sincerely believe that with the right support and resources, more people and businesses will be able to ‘make it’ in Michigan.”
