Michigan jobless rate stable in December

LANSING, Mich. – Michigan’s seasonally adjusted unemployment rate was unchanged over the month at 5.0 percent, according to data released today by the Michigan Department of Technology, Management & Budget. Employment decreased by 9,000 over the month and the number of unemployed people was unchanged, resulting in a workforce decline of 9,000 in December.

“Michigan’s unemployment rate ended the year at 5.0 percent, after peaking to 5.5 percent during the first half of 2025. Both employment and unemployment levels receded throughout the year, causing a sizable drop in the state’s labor force.” said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics. “Payroll jobs edged up slightly over the month, but overall growth remained modest in the second half of 2025.”

The national jobless rate edged down by one-tenth of a percentage point between November and December to 4.4 percent. Michigan’s December unemployment rate was 0.6 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 decreased by 0.2 percentage points since December 2024.

Labor force trends and highlights

• Total employment in Michigan fell for the ninth consecutive month of available data (excluding October 2025). The statewide employment total receded by 44,000, or 0.9 percent, since February 2025.
• Michigan’s labor force receded by 0.2 percent over the month, while the national workforce total was unchanged between November and December.
• The number of unemployed people in the state receded by 3.8 percent over the year, while the national unemployment total rose by 8.4 percent since December 2024.
• The statewide labor force participation rate receded by one-tenth of a percentage point over the month to 61.0 percent. Michigan’s employment-population ratio also fell by one-tenth of a percentage point during December to 57.9 percent.

Detroit metro area unemployment rate increases during December

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s seasonally adjusted unemployment rate edged up by 0.1 percentage points between November and December to 4.8 percent. Employment was unchanged over the month and total unemployment rose by 2,000. The Detroit metro area labor force increased by 2,000 in December.

Over the year, the Detroit metro area jobless rate decreased by 0.2 percentage points. The region’s labor force was unchanged since December 2024.

Michigan payroll employment up over the month

According to the monthly survey of employers, Michigan's seasonally adjusted payroll employment advanced by 5,000, or 0.1 percent, between November and December.

Industry employment trends and highlights

• Nonfarm payroll jobs increased for the sixth consecutive month during December, with employment advancing by 18,000, or 0.4 percent, since June 2025.
• Michigan’s government sector recorded the largest over-the-month numerical employment gain during December (+4,000).
• Monthly job losses were seen in construction (-4,000) and trade, transportation, and utilities (-1,000).
• Over the year, Michigan total nonfarm employment rose by 34,000, or 0.7 percent.
• The most significant over-the-year numerical industry job gains occurred in government (+14,000) and private education and health services (+11,000).
• On a percentage basis, the state’s construction sector saw the most notable industry employment gain since December 2024 (+3.2 percent).
• Statewide annual average job levels rose for the fifth consecutive year, advancing by 41,000, or 0.9 percent, in 2025.

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

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