Michigan unemployment rate decreases in August

LANSING, Mich. – Michigan’s seasonally adjusted unemployment rate receded by one-tenth of a percentage point over the month to 5.2 percent during August, according to data released today by the Michigan Department of Technology, Management & Budget. Employment decreased by 7,000 over the month, and the number of unemployed people fell by 6,000. Michigan’s labor force receded by 14,000 during August.  

“Michigan’s unemployment rate decline in August was primarily due to fewer people in the workforce,” said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics. “However, seasonally adjusted payroll jobs continued to remain steady over the month.”

The national unemployment rate advanced by one-tenth of a percentage point over the month to 4.3 percent. Michigan’s August unemployment rate was 0.9 percentage points above the U.S. rate. The national jobless rate edged up by a tenth of a percentage point over the year, while Michigan’s rate rose by 0.2 percentage points since August 2024.

Labor force trends and highlights

• Michigan’s labor force fell for the fifth consecutive month during August, receding by 38,000, or 0.7 percent, since March 2025.
• The total number of unemployed in the state fell by 2.2 percent over the month, while the national unemployment total rose by 2.0 percent.
• Michigan employment receded by 0.5 percent over the year, while the national employment total advanced by 1.2 percent since August 2024.
• The August statewide labor force participation rate was reduced by one-tenth of a percentage point over the month to 61.5 percent. Michigan’s employment-population ratio decreased by 0.2 percentage points to 58.2 percent.

Detroit metro area unemployment rate recedes in August

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) seasonally adjusted unemployment rate fell by two-tenths of a percentage point to 4.6 percent during August. Employment and unemployment in the Detroit MSA each fell by 3,000 over the month. The Detroit metro area labor force was reduced by 7,000 since July.

Over the year, the Detroit metro area unemployment rate fell by 0.2 percentage points. Employment rose by 19,000 and unemployment fell by 2,000 since August 2024.

Michigan payroll employment increases in August

According to the monthly survey of employers, Michigan seasonally adjusted nonfarm payroll jobs rose by 5,000 between July and August, resulting in a job total of 4,534,000.

Industry employment trends and highlights

• The state’s professional and business services sectors recorded payroll job gains (+4,000) following three consecutive months of declining employment in this industry.
• Michigan’s construction and manufacturing sectors demonstrated the largest over-the-month employment decrease in August, with jobs receding by 2,000 in each industry.
• Employment within private education and health services rose for the third consecutive month, with jobs increasing by 9,000 since May 2025.
• Michigan nonfarm payroll jobs rose by 44,000, or 1.0 percent, since August 2024.
• The most significant over-the-year numeric industry job gains occurred within the private education and health services (+22,000), government (+12,000), and financial activities (+8,000) sectors.

Revision to previous month’s payroll jobs

• Following the standard monthly revision process, July total payroll jobs were unchanged over the month, at 4,529,000.
• Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.