Michigan regional unemployment rates rose in most labor markets during July

Unemployment rates rose in 11 of Michigan’s 18 labor-market areas during July, with rates ranging from 3.8% in Traverse City to 6.0% in the Detroit-Warren-Dearborn area, according to not-seasonally-adjusted data released Aug. 27 by the Michigan Center for Data and Analytics.

The figures show uneven conditions across Michigan but should not be read as a direct contradiction of the state’s separate seasonally adjusted statewide report. That report, released Aug. 20, showed Michigan’s unemployment rate declining from 5.0% in June to 4.9% in July.

Because the regional figures are not seasonally adjusted, normal summer patterns can affect month-to-month comparisons. The state said payroll-job declines during July were tied in part to seasonal education cuts and temporary layoffs in auto-related industries.

Regional rates varied by 2.2 percentage points

Detroit-Warren-Dearborn had the highest regional unemployment rate at 6.0%, up 0.6 percentage point from June. Traverse City had the lowest rate at 3.8%, unchanged from the previous month. The difference between the two areas was 2.2 percentage points.

Battle Creek recorded the largest monthly rate increase, rising 0.7 percentage point to 5.8%. Six regions reported unchanged unemployment rates, and Midland’s rate fell by 0.1 percentage point to 4.7%.

The year-over-year picture was different. Seventeen regions had lower unemployment rates than in July 2025. Flint posted the largest decline, down 1.4 percentage points to 5.8%. Detroit-Warren-Dearborn was the only region with a year-over-year increase, up 0.4 percentage point to 6.0%.

Employment rose from June but remained below last year

Employment increased month to month in 12 regions. Traverse City led with a 3.4% gain. Employment was unchanged in Monroe and fell in five areas.

Compared with July 2025, however, employment was lower in all 18 regions. Muskegon had the largest annual decline, down 7.1%.

Regional labor-force totals rose in 14 areas during July but fell in every region over the year. The labor force includes people who are working and those actively seeking work, so changes in participation can affect the unemployment rate. The figures do not show that every person counted as unemployed lost a job during July.

Payroll jobs fell by 50,000 in July

A separate survey of employers showed that Michigan’s not-seasonally-adjusted payroll jobs declined by 50,000, or 1.1%, in July. Government payrolls fell by 28,000, while professional and business services declined by 25,000.

Payroll jobs fell in 14 of the state’s 15 metropolitan areas over the month. Monroe recorded the largest monthly decrease, at 3.4%.

The Michigan Center for Data and Analytics attributed much of the monthly payroll decline to seasonal reductions in education employment and temporary layoffs in auto-related industries. Those explanations come from the state’s release and do not identify particular employers or workers affected.

Despite the monthly decline, Michigan payroll jobs were up 19,000, or 0.4%, from July 2025. Nine metro areas recorded annual payroll-job gains, led by Flint at 1.5%.

Why the statewide rate looks different

Michigan’s separate statewide report, released Aug. 20, showed the seasonally adjusted unemployment rate declining from 5.0% in June to 4.9% in July. That measure is designed to remove recurring seasonal effects and should not be directly conflated with the regional rates released Aug. 27.

The statewide report also showed seasonally adjusted payroll employment increasing by 7,000 in July, including a 4,000-job gain in manufacturing. The regional release’s 50,000-job decline comes from the not-seasonally-adjusted employer survey, while the regional unemployment-rate and employment estimates come from a household survey. These are different measures of labor-market activity and are not expected to match one for one.

What the numbers mean for Michigan residents

The July data provide broad context for workers, employers and local communities, but they do not determine individual unemployment-benefit eligibility, identify specific occupations or explain conditions at a particular company.

Workers comparing local job markets should consider both the regional figures and the seasonally adjusted statewide rate. The U.S. Bureau of Labor Statistics identifies current estimates as subject to revision the following month. More detailed Michigan regional and county data are available through the state’s labor-market data tools.

Sources

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