Michigan's seasonally adjusted unemployment rate increased by 0.2 percentage points to 5.0% in December, according to data released by the Michigan Department of Technology, Management & Budget. Employment declined by 11,000, while unemployment increased by 8,000, resulting in a net labor force reduction of 3,000 from November.

“After three consecutive years of declining unemployment rates, Michigan's annual average unemployment rate increased in 2024,” said Wayne Rourke, labor market information director for the Michigan Center for Data and Analytics. “However, the state's annual average labor force and total payroll employment both saw growth over the year.”

Nationally, the unemployment rate declined by 0.1 percentage points to 4.1% in December. Michigan's rate was 0.9 percentage points higher than the national average. Over the year, the national unemployment rate increased by 0.3 percentage points, while Michigan’s rose by 0.9 percentage points compared to December 2023.

Labor Force Trends and Highlights

• Michigan’s unemployment rate increased for the third consecutive month in December.
• The December jobless rate of 5.0% was the highest recorded in Michigan since October 2021 (5.1%).
• Total employment in Michigan declined by 0.2% over the month, while national employment grew by 0.3%.
• The number of unemployed individuals in Michigan increased by 21.7% over the year, exceeding the national growth rate of 9.0%.
• The statewide labor force participation rate remained unchanged at 62.2% for the third consecutive month.
• Michigan’s employment-population ratio declined by 0.1 percentage points to 59.1% in December.

Michigan's 2024 Preliminary Annual Labor Force Data

Michigan’s preliminary annual average unemployment rate in 2024 was 4.5%, up 0.6 percentage points from 3.9% in 2023. The state had an average employment level of 4,821,000 in 2024, with an estimated 228,000 unemployed individuals. The total annual labor force was 5,049,000.

Annual Average Trends and Highlights

• The 2024 unemployment rate increase follows three consecutive years of decline.
• Michigan’s annual average unemployment rate was 0.5 percentage points higher than the preliminary national rate of 4.0%.
• Annual employment increased by 9,000 (0.2%), while the number of unemployed individuals grew by 33,000 (16.9%).
• The state's labor force expanded by 41,000 (0.8%) over the year.

Detroit Metro Area Unemployment Rate Trends

The seasonally adjusted unemployment rate in the Detroit-Warren-Dearborn Metropolitan Statistical Area (MSA) increased by 0.1 percentage points to 4.9% in December. Employment in the region declined by 12,000, while the number of unemployed rose by 2,000, leading to a net labor force reduction of 10,000.

Over the past year, the Detroit MSA unemployment rate increased by 0.9 percentage points. Employment declined by 62,000, and the number of unemployed increased by 20,000 compared to December 2023.

Detroit MSA 2024 Preliminary Annual Labor Force Data

The Detroit-Warren-Dearborn MSA’s preliminary annual average unemployment rate for 2024 was 4.5%, an increase of 0.9 percentage points from the 2023 average of 3.6%. The Detroit region’s annual jobless rate was equal to the statewide unemployment rate.

Michigan Payroll Employment Increases in December

Based on the monthly survey of employers, Michigan's seasonally adjusted nonfarm employment rose by 6,000 (0.1%) in December.

Industry Employment Trends and Highlights

• Nonfarm payroll employment increased for the fourth consecutive month, adding 22,000 jobs (0.5%) since August 2024.
• The leisure and hospitality sector recorded the largest employment gain in December (+3,000).
• Job declines were observed in manufacturing (-2,000) and construction (-1,000) sectors.
• Since December 2023, total nonfarm payroll employment in Michigan has grown by 43,000 (1.0%).
• The largest over-the-year job gains occurred in government (+18,000), construction (+14,000), and private education and health services (+12,000) sectors.
• Michigan's annual average employment increased for the fourth consecutive year in 2024, with total nonfarm payroll jobs rising by 39,000 (0.9%).