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Michigan unemployment rate increased in August

LANSING, Mich. – Michigan’s seasonally adjusted unemployment rate inched up by one-tenth of a percentage point to 5.0 percent during August, according to data released today by the Michigan Department of Technology, Management & Budget. Employment decreased by 25,000, and the number of unemployed people was unchanged over the month, resulting in a workforce decline of 25,000 in August.

“The uptick in Michigan’s unemployment rate was driven by an overall reduction in the state’s workforce in August,” said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics. “Payroll jobs declined due to losses in manufacturing this month.”

The national unemployment rate remained unchanged at 4.1 percent in August. Michigan’s August jobless rate was 0.9 percentage points larger than the national rate. The U.S. unemployment rate fell by two-tenths of a percentage point over the year, while the statewide rate rose by one-tenth of a percentage point since August 2025.

 

Detailed data will be available for viewing and download with the MCDA Data Search tool by noon.

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Michigan and U.S. Unemployment Rates

Seasonally Adjusted

Data for October 2025 were not collected due to the federal government shutdown.

Source: Local Area Unemployment Statistics, U.S. Bureau of Labor Statistics

 

Labor force trends and highlights

  • Michigan’s total workforce fell by 0.5 percent over the month, while the national labor force total moved up by 0.4 percent.
  • Total unemployment in the state was unchanged during August, while total unemployment in the U.S. advanced by 1.7 percent over the month.
  • Michigan’s employment total receded by 3.2 percent over the year, while the national employment level decreased by 0.4 percent since August 2025.
  • Michigan’s labor force participation rate declined by 0.3 percentage points to 58.8 percent over the month. Michigan’s employment-population ratio fell by 0.3 percentage points to 55.9 percent in August.

 

Michigan Labor Force Estimates 

Seasonally Adjusted

Labor Market Indicators Aug. 2026 Jul. 2026 Aug. 2025 Over-the-month Change Over-the-year Change
Civilian Labor Force 4,853,000 4,878,000 5,011,000 -25,000 (-0.5%) -158,000 (-3.2%)
Employed 4,612,000 4,637,000 4,776,000 -25,000 (-0.5%) -154,000 (-3.2%)
Unemployed 241,000 241,000 246,000 0 (0.0%) -5,000 (-2.0%)
Unemployment Rate 5.0% 4.9% 4.9% 0.1 0.1

Source: Local Area Unemployment Statistics, U.S. Bureau of Labor Statistics

 

Detroit metro area unemployment rate rose in August

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) seasonally adjusted unemployment rate edged up by one-tenth of a percentage point to 5.4 percent during August. Employment fell by 11,000 over the month, while unemployment rose by 1,000, resulting in a workforce loss of 10,000 in August.    

The Detroit MSA unemployment rate increased by seven-tenths of a percentage point over the year. The Detroit region’s labor force advanced by 27,000 since August 2025.

 

Detroit-Warren-Dearborn MSA Labor Force Estimates

Seasonally Adjusted

Labor Market Indicators Aug. 2026 Jul. 2026 Aug. 2025 Over-the-month Change Over-the-year Change
Civilian Labor Force 2,182,000 2,192,000 2,155,000 -10,000 (-0.5%) 27,000 (1.3%)
Employed 2,064,000 2,075,000 2,053,000 -11,000 (-0.5%) 11,000 (0.5%)
Unemployed 118,000 117,000 102,000 1,000 (0.9%) 16,000 (15.7%)
Unemployment Rate 5.4% 5.3% 4.7% 0.1 0.7

Source: Local Area Unemployment Statistics, U.S. Bureau of Labor Statistics

 

Statewide payroll jobs inched down in August

According to the monthly survey of employers, Michigan seasonally adjusted nonfarm payroll employment fell by 2,000 to a total of 4,496,000 during August.

Industry employment trends and highlights

  • After five consecutive months of employment increases, Michigan total nonfarm payroll jobs declined during August.
  • The state’s manufacturing sector demonstrated the greatest over-the-month employment decrease in August (-2,000).
  • Employment within private education and health services advanced for the fourth consecutive month, with jobs increasing by 6,000 since April 2026.
  • Over the year, statewide payroll jobs rose by 8,000, or 0.2 percent.
  • Industries with the most prominent over-the-year payroll gains included government (+16,000) and private education and health services (+8,000).
  • Since August 2025, professional and business services demonstrated the greatest numerical job loss (-6,000).

Michigan Total Nonfarm Jobs

Seasonally Adjusted

Note: Change calculated using unrounded data

Source: Current Employment Statistics, U.S. Bureau of Labor Statistics

Michigan Industry Job Change

Seasonally Adjusted, August 2026

Note: Change calculated using unrounded data

Source: Current Employment Statistics, U.S. Bureau of Labor Statistics