(The Center Square) – Michigan’s unemployment is the third highest nationally, according to the latest data from the U.S. Bureau of Labor Statistics.
With Michigan’s unemployment rate at 5.4% in June, Nevada is the only state with higher unemployment at 5.5%. California tied with Michigan at 5.4%, increasing from the previous month’s 5.3%.
Michigan state officials applauded this as a positive trend for the state, which had previously ranked second-worst in the nation for three consecutive months.
“Michigan’s unemployment rate declined for the second consecutive month in June, a sign of labor market stabilization during the second quarter,” said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics. “Payroll jobs also declined this month but recorded a solid second quarter gain of over 10,000 jobs.”
In June, Michigan also lost 8,700 net payroll jobs, despite unemployment decreasing. Down 0.1% from May, 271,454 Michiganders remained unemployed in June.
This means that Michigan’s unemployment rate was still more than 1% higher than the national average of 4.1%.
This comes as the Michigan Department of Labor started distributing $34 million in back payments to qualifying unemployment insurance claimants last week.
These back payments are part of a legislation package signed by Gov. Gretchen Whitmer in December to increase unemployment benefits for the first time since 2002.
The current maximum weekly benefit has been increased from $362 a week to $446, with future increases to $530 in 2026 and $614 in 2027.
“This money will help thousands of Michiganders across the state pay their bills and feed their families,” said Michigan Unemployment Insurance Agency Director Jason Palmer. “Our phone staff is hearing from many, many callers who appreciate receiving the extra money while they search for work. This is one of the many benefits from bipartisan legislation signed into law by Governor Whitmer last December.”
The state anticipates that nearly 48,000 Michiganders will receive retroactive unemployment payments.
Currently, Michigan’s labor force participation rate is also lower than the national average, with some fluctuation month to month.
In June, the state had 61.7% labor force participation, placing it 33rd in the nation. By comparison, the national average was 62.4%, and top states were in the 70% range. This is according to the June 2025 report from the U.S Congress Joint Economic Committee.
Republicans, who only recently gained control of the state House after a Democrat-held trifecta, have expressed concerns about these numbers showing the state’s economic stagnation.
“Numbers don’t lie. [Gov. Gretchen] Whitmer’s policies have failed Michigan workers,” said Senate Republican Leader Aric Nesbitt, R-Porter Township. Nesbitt is running for governor in 2026. “It’s time to cut taxes and reduce regulations so we can unlock Michigan’s potential.”
