(The Center Square) – Michigan’s unemployment rate remains among the highest in the nation, according to the latest data.
A new report from the Michigan Department of Technology, Management & Budget shows the state’s seasonally-adjusted unemployment rate increased by one-tenth of a percentage point to 5.1% in May.
Employment declined by 20,000 over the month, while the number of unemployed residents rose by 1,000. That combination pushed Michigan’s total labor force down by 19,000 from April to May.
“Michigan payroll jobs climbed for the third consecutive month during May but were still slightly lower than a year ago” said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics. “The state’s unemployment rate ticked up to 5.1 percent in May, matching the May 2025 rate.”
That comes after six months of holding steady at 5%.
Nationally, the unemployment rate remained steady in May at 4.3%, putting Michigan 0.8% above the U.S. average.
Despite some improvement early in the year, Michigan once again ranks among the top-five states with the highest unemployment rates—coming in fifth. This is according to the U.S. Bureau of Labor Statistics.
In May, it trailed only a handful of others: California, Washington, Oregon, and Nevada. South Dakota has the lowest unemployment rate at 2.1%.
Data also shows that Michigan’s labor force has been shrinking even as the national workforce grows, a trend that continued in May. From April to May, total participation in the labor force dropped 0.3%. That is down 111,000, or 2.2%, from May 2025.
Participation in the labor force is 59.8% in Michigan, compared to 61.8% nationally.
Manufacturing led Michigan’s job growth in May, adding 3,000 positions, the largest over-the-month increase of any major industry sector.
Government employment has also continued a steady climb, increasing for the ninth-consecutive month. Since August 2025, the sector has added 10,000 jobs statewide.
This latest unemployment report underscores ongoing challenges in Michigan’s labor market. Opinions are divided on what is causing Michigan’s high unemployment compared to other states. Democrats say issues like tariffs, while Republicans lay the blame on economic policies pushed by Gov. Gretchen Whitmer.
