Michigan’s Jobless Rate Flat in April; Experts Warn of Future Increases

Michigan’s jobless rate was steady at 5.5% for April 2025, a temporary reprieve after three months of rising rates of unemployment. That number, published May 15 by the Michigan Department of Technology, Management and Budget (DTMB), can be considered temporary calm but action on the streets shows the peace won’t last long.

When compared to the same period last year, the state’s jobless rate has gone up considerably. Michigan’s unemployment rate in April 2024 was 4.4%, representing a 1.1 percentage point gain over the last 12 months.

At the same time, the nation’s unemployment rate while showing no change in April at 4.2% – also displayed the same trend of labor market woes across the country.

A Closer Look at Job Gains

While the unemployment rate stayed flat, there was positive activity in jobs. Michigan added 11,000 payroll jobs during April, an increase of 0.2%, in employer surveys conducted by DTMB.

The majority of the new jobs were in the private education and health services sector, a healthy and expanding sector even during periods of general economic instability.

Manufacturing, a stalwart leading industry for the state of Michigan, also jumped slightly by 2,000 jobs in April. That’s balanced, however, by the fact that manufacturing employment remains 11,000 jobs behind April 2024. That’s a gauge of ongoing ills in the sector, including automation, international supply chain pullbacks, and economic trends.

Warning Signs Ahead

Though the rate was even in April, there are some warning signs of future rises in unemployment. One of the indicators is the rise in unemployment insurance jobless claims weekly. New jobless claims increased to more than 12,000 in the week ending May 3, a massive number compared to previous years. Though next week’s claims dropped to 6,347, it’s higher than normally experienced in an employment atmosphere that’s good. These large numbers show that more employees are being let go, yet total employment is rising modestly.

Mass Layoffs and WARN Notices

Another sign of impending job market stress is the rise in the number of WARN Act notices filed by Michigan-based companies. The WARN (Worker Adjustment and Retraining Notification) Act requires that employers provide advance notice before initiating mass layoffs or plant closing.

One of the biggest recent warnings was from General Motors, which in April announced that it would be cutting its workforce at its Factory Zero plant, in Detroit and Hamtramck, by 200 employees. The factory has been the location of GM’s shift toward electric vehicle production, and the cuts are a cause for concern about the pace of that shift and what they portend for Michigan workers.

Other businesses in other industries have also issued WARN notices, so the layoffs are not just confined to manufacturing. The trend may also pressure Michigan’s labor market in the future.

The Bigger Picture: Economic Stress

Michigan’s new economy is a patchwork of contrasts. Healthcare and education positions are on the increase, and total unemployment has been temporarily held at bay. However, mounting layoffs, flat manufacturing bounce, and ongoing inflation are alarming workers and economic analysts alike.

Inflation has eased since the peak of 2022 and has been spurring on wage growth across much of the country. Yet, most residents show that prices continue to be out of reach for them, which is what spurs the concern on how much incomes are being strained when confronted with housing, utility, and food bills.

What to Expect in the Months Ahead

The coming months will be telling to whether Michigan’s work climate continues strong or begins to slip. If the job reductions continue to happen at an increasing rate and hiring gets bogged down, it’s safe to say the unemployment rate once again begins to rise, pushing Michigan further into the national average.

Policymakers and business executives will be watching whether autos, manufacturing, and technology rebound or fall. Meanwhile, the family and the worker are looking for a place to call home that they can afford and stability among workers necessary for long-term economic health.

In the meantime, April’s flat jobless rate gives us an illusory moment of balance but all the omens are for continued uncertainty as Michigan navigate the complex permutations of a post-pandemic, high-tech, and inflation-sensitve economy.

Michigan’s unemployment rate may have held steady at 5.5% for April, but increasing unemployment filings and layoff notices are warning signs. There are still some patches of light of hope for the labor market—primarily in healthcare and education—but the future remains uncertain. Ongoing monitoring of WARN notices, sector-specific hiring trends, and inflationary impact on real wages will be required to make forecasts on the way ahead for Michigan workers.