by Scott McClallen
Michigan’s seasonally adjusted unemployment rate decreased by three-tenths of a percentage point to 3.8% during April, according to data from the Department of Technology, Management, and Budget.
Employment in the state rose by 30,000, while unemployment decreased by 14,000. Michigan’s labor force rose by 18,000 over the month, with some sectors rebounding from COVID’s job losses.
“There was a large drop in the number of unemployed people this month in Michigan, causing the state’s unemployment rate to fall,” Michigan Center for Data and Analytics market information director Wayne Rourke said in a statement. “Payroll jobs rose for the sixth consecutive month during April.”
Gov. Gretchen Whitmer welcomed the update.
“Michigan’s economy is moving,” Whitmer said in a statement. We have a low unemployment rate of 3.8%, comparable to the lowest levels Michigan has seen only three times since the ‘70s. Our strong labor market means working people are finding good-paying jobs, companies are investing and expanding in Michigan, and families have more money to buy food, get gas, and save for their children’s futures.
The national unemployment rate fell by one-tenth of a percentage point to 3.4% during April. Michigan’s April jobless rate was 0.4 percentage points above the U.S. rate. The national and statewide unemployment rates both demonstrated a rate reduction of two-tenths of a percentage point over the year.
Labor force trends and highlights
- Michigan’s April employment level of 4,682,000 was the largest employment total seen in the state since March 2020, at 4,731,000.
- Total unemployment in the state decreased by 7% over the month, a reduction over twice the unemployment drop seen nationally (-3.1%).
- Although Michigan’s April 2023 rate of 3.8% matched its February 2020 pre-pandemic rate, the statewide labor force in April 2023 remained 72,000 below its February 2020 level.
- The statewide workforce advanced by 0.5% over the year, while the national workforce rose by 1.7% since April 2022.
- The April statewide labor force participation rate rose by three-tenths of a percentage point to 60.2% over the month, while Michigan’s employment-population ratio increased by 0.3 percentage points to 57.8%.
- Detroit metro area unemployment rate dropped in April.
The Detroit-Warren-Dearborn Metropolitan Statistical Area’s seasonally adjusted employment total increased by 11,000 over the month, while unemployment declined by 7,000, resulting in a minor workforce gain and a jobless rate reduction during April.
The Detroit MSA unemployment rate was reduced by six-tenths of a percentage point over the year. Employment edged up by 3,000 and unemployment fell by 13,000, resulting in a labor force decline of 10,000 since April 2022.
According to the monthly survey of employers, Michigan seasonally adjusted nonfarm employment increased slightly by 5,000, or 0.1%, over the month. Much of this month’s employment increase came from the professional and business services sector while most other industries recorded only minor job changes.
Total nonfarm jobs in the state rose for the sixth consecutive month during April.
Michigan’s professional and business services sector exhibited the largest employment gain over the month, with employment rising by 3,000 since March.
Statewide nonfarm employment rose by 61,000, or 1.4%, over the year.
Industries with the largest numerical over-the-year employment gains included government (+19,000) and education and health services (+19,000).
On a percentage basis, the state’s construction industry demonstrated the largest over-the-year employment increase (+4.3%).
As of April 2023, Michigan payroll jobs were still 30,000 below their February 2020 pre-pandemic level.
Average weekly earnings in Michigan’s manufacturing industry rose by nearly six percent over the year.
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Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.
