Michigan unemployment rate edges down during September

LANSING, Mich. – Michigan’s seasonally adjusted unemployment rate decreased by one-tenth of a percentage point over the month to 5.1 percent in September, according to data released today by the Michigan Department of Technology, Management & Budget. Employment fell by 2,000 over the month, and the number of unemployed people receded by 5,000, resulting in a workforce decline of 7,000 in September.

“Michigan’s labor market showed declining trends for both the labor force and state unemployment rate throughout the third quarter. Both metrics have fallen from recent peaks earlier in the year.” said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics. “Payroll jobs edged up slightly in September, displaying minor monthly job gains in the third quarter.”

The national unemployment rate increased by one-tenth of a percentage point over the month to 4.4 percent. Michigan’s September jobless rate was 0.7 percentage points above the U.S. rate. The national jobless rate advanced by three-tenths of a percentage point over the year, while Michigan’s unemployment rate was unchanged since September 2024.  

Labor force trends and highlights

• Total employment in the state decreased for the seventh consecutive month during September, with the number of employed declining by 28,000, or 0.6 percent, since February 2025.
• Michigan’s total workforce receded by 0.1 percent over the month, while the national labor force rose by 0.3 percent in September.
• The number of unemployed people in the state edged up by 0.4 percent over the year, whereas the national number of unemployed advanced by 10.2 percent since September 2024.
• Michigan’s average quarterly jobless rate was reduced by 0.2 percentage points since the second quarter of 2025, from 5.4 to 5.2 percent.
• The September statewide labor force participation rate decreased by two-tenths of a percentage point over the month to 61.3 percent. Michigan’s employment-population ratio remained unchanged in September at 58.2 percent.

Detroit metro area unemployment rate remains stable in September

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) seasonally adjusted unemployment rate was unchanged at 4.6 percent during September. Employment was reduced by 8,000 over the month and total unemployment edged down by 1,000. The Detroit metro area labor force fell by 8,000 over the month.

Over the year, the Detroit metro area jobless rate decreased by 0.3 percentage points.  Employment rose by 16,000 and unemployment fell by 6,000 since September 2024.

Michigan nonfarm payroll jobs rose modestly in September

According to the monthly survey of employers, Michigan seasonally adjusted nonfarm payroll jobs increased by 2,000 during September, resulting in a job total of 4,534,000.

Industry employment trends and highlights

• Michigan’s construction sector exhibited the largest over-the-month employment increase, with jobs advancing by 4,000 since August.
• Monthly job losses were led by private education and health services (-5,000).
• Michigan seasonally adjusted total nonfarm jobs were 36,000, or 0.8 percent, above its year-ago level.
• Over the year, private education and health services recorded the most significant industry job gains (+13,000).
• On a percentage basis, the state’s construction sector saw the most notable industry employment gain since September 2024 (+5.6 percent).
• Statewide quarterly nonfarm employment advanced by 3,000, or 0.1 percent, between second and third quarter 2025.

For more detailed information, including data tables, view the full release.

Important note about monthly employment situations:

Due to the suspension of federal government services from Oct. 1 to Nov. 12, updates to Michigan's monthly employment, unemployment, and payroll jobs estimation for September 2025 were delayed. The October 2025 Michigan and regional employment situation press releases have been cancelled as a result of the interruption in federal operations, which impeded the ability to collect survey data for the October reference period. The upcoming November 2025 Michigan and regional employment situation releases will be issued Jan. 6 and Jan. 15, 2026, respectively.

For the latest information on Michigan and regional employment situation release dates, please go to Michigan.gov/mcda/labor-market-information/employment-situation-press-release-dates.