Michigan unemployment rate drops in April

Michigan’s seasonally adjusted unemployment rate decreased by three-tenths of a percentage point to 3.8 percent during April, according to data released Thursday by the Department of Technology, Management & 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.

“There was a large drop in the number of unemployed people this month in Michigan, causing the state’s unemployment rate to fall,” said Wayne Rourke, labor market information director of the Michigan Center for Data and Analytics. “Payroll jobs rose for the sixth consecutive month during April.”   

The national unemployment rate fell by one-tenth of a percentage point to 3.4 percent 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 (4,731,000).

• Total unemployment in the state decreased by 7.0 percent over the month, a reduction over twice the unemployment drop seen nationally (-3.1 percent).

• Although Michigan’s April 2023 rate of 3.8 percent 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 percent over the year, while the national workforce rose by 1.7 percent since April 2022.

• The April statewide labor force participation rate rose by three-tenths of a percentage point to 60.2 percent over the month, while Michigan’s employment-population ratio increased by 0.3 percentage points to 57.8 percent.

—Detroit metro area unemployment rate drops in April

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) 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.

—Michigan payroll jobs edge up in April

According to the monthly survey of employers, Michigan seasonally adjusted nonfarm employment increased slightly by 5,000, or 0.1 percent, 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.  

—Industry employment trends and highlights

• Total nonfarm jobs in the state rose for the sixth consecutive month during April.

• Michigan’s professional and business services sector exhibited the largest numerical employment gain over the month, with employment rising by 3,000 since March.

• Statewide nonfarm employment rose by 61,000, or 1.4 percent, 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 percent).

• 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.