Skip to main content

Unemployed Persons-to-Job Openings Ratio Reaches a Near Five-Year High

Michigan’s job openings rate declined in June, according to the latest release of the Job Openings and Labor Turnover Survey (JOLTS). Similarly, the hires rate, separations rate, quits rate, and overall labor turnover rate all fell. The unemployed persons-to-job openings ratio was the only metric to increase during this period while layoffs/discharges remained unchanged.

Job Openings Declined Significantly

Job openings fell by approximately 38,000 from 226,000 in May to 188,000 in June. As a result, the job openings rate, a measure of job openings as a percentage of employment, dropped to 4.0 percent (-0.8 percentage points), the lowest since May 2020 (3.6 percent). Michigan’s rate was below the national rate of 4.5 percent and recorded the ninth lowest among all states.

Author:

Michigan’s job openings rate fell below the national rate in June.

Source: Job Openings and Labor Turnover Survey, U.S. Bureau of Labor Statistics

Unemployed Persons-to-Job Openings Ratio Rose Sharply

The unemployed persons-to-job openings ratio rose to 1.44 in June—Michigan’s highest level since December 2020 (1.50). This ratio has remained above 1.0 since May 2024, indicating that the number of job seekers has consistently exceeded available job openings. Michigan recorded the second highest ratio among states, behind California (1.52), and was well above the national level (0.94).

The Michigan unemployed persons-to-job openings ratio reached its highest level in nearly five years.

Source: Job Openings and Labor Turnover Survey, U.S. Bureau of Labor Statistics

Labor Turnover Slowed

Michigan’s labor turnover rate, a combination of the hires and separations rate, fell to 6.7 percent in June (-0.6 percentage points). This decline was primarily driven by the substantial drop in hiring. Despite this decrease, Michigan remained above the national turnover rate (6.4 percent) and recorded the 30th highest rate among states.

Hires Dropped in June

The hires rate, which measures hires as a percentage of employment, declined to 3.2 percent in June (-0.6 percentage points)—the lowest rate in nearly two years (since September 2023, 3.5 percent). This was due to employers hiring approximately 27,000 fewer workers in June (146,000) compared to May (173,000). Michigan recorded the 30th highest rate among states and remained below the national hires rate (3.3 percent).

Separations Inched Downward

Approximately 4,000 fewer individuals separated from their jobs in June (155,000) compared to May (159,000), resulting in a slight decline in the separations rate, a measure of separations as a percentage of employment, to 3.4 percent (-0.1 percentage points). Michigan recorded the 22nd highest rate among states and exceeded the national rate of 3.2 percent.

The overall decline in separations was driven by roughly 10,000 fewer quits in June (96,000) than in May (106,000). Consequently, the quits rate, a measure of quits as a percentage of employment, fell to 2.1 percent (-0.2 percentage points). The layoffs/discharges rate, a measure of involuntary separations, remained at 1.1 percent for the second consecutive month.