Michigan unemployment rate decreases in May

LANSING, Mich. – Michigan’s seasonally adjusted jobless rate edged down by one-tenth of a percentage point over the month to 5.4 percent, according to data released today by the Michigan Department of Technology, Management & Budget. Employment was reduced by 5,000 over the month, and the number of unemployed people fell by 1,000. Michigan’s labor force receded by 7,000 during May.

“Michigan’s labor market remained stable over the month, with a minor unemployment rate reduction in May,” said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics. “Statewide payroll jobs also rose over the month and over the year.”

The U.S. unemployment rate remained constant for the third consecutive month at 4.2 percent. Michigan’s jobless rate in May was 1.2 percentage points above the national rate. Over the year, the national unemployment rate rose by two-tenths of a percentage point, while the statewide rate increased by 0.9 percentage points since May 2024.

Labor force trends and highlights

• After two years of jobless rates that increased or remained stable over the month, Michigan’s unemployment rate decreased in May to 5.4 percent, a rate last seen during February 2025.
• Michigan’s total workforce edged down by 0.1 percent over the month, while the national labor force receded by 0.4 percent since April.
• Total employment fell by 0.2 percent over the year. In comparison, the U.S. total number of employed advanced by 1.3 percent during the same period.
• The May statewide labor force participation rate decreased by one-tenth of a percentage point over the month to 61.9 percent. Michigan’s employment-population ratio also fell by a tenth of a percentage point to 58.5 percent during May.

Detroit metro area jobless rate recedes in May

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) seasonally adjusted unemployment rate decreased by one-tenth of a percentage point to 5.0 percent during May. Employment in the Detroit MSA rose by 4,000, while unemployment fell by 3,000, resulting in a slight labor force increase of 1,000 over the month.

Over the year, the Detroit MSA unemployment rate advanced by 0.7 percentage points. Employment fell by 5,000 and unemployment advanced by 16,000 since May 2024.  

Michigan payroll employment increases in May

According to the monthly survey of employers, Michigan seasonally adjusted nonfarm payroll jobs advanced by 10,000, or 0.2 percent, during May.

Industry employment trends and highlights

• The change in total payroll employment for April was revised up by 5,000 from 4,523,000 to 4,528,000.
• Michigan’s leisure and hospitality sector demonstrated the largest over-the-month employment increase, with jobs advancing by 5,000 in May.
• On a percentage basis, the state’s construction sector demonstrated the most significant over-the-month employment gain during May (+2.1 percent).
• Monthly job losses were led by professional and business services (-2,000).
• On a seasonally adjusted basis, statewide nonfarm payroll jobs rose by 49,000, or 1.1 percent, over the year.
• Since May 2024, the private education and health services (+19,000), leisure and hospitality (+12,000), and construction (+10,000) sectors recorded the most pronounced numerical job additions.