Nik Rajkovic / news@whmi.com

Michigan’s seasonally adjusted jobless rate increased by one-tenth of a percentage point to 5.3 percent during January, according to data released Thursday by the Michigan Department of Technology, Management & Budget.

Total employment in Michigan rose by 6,000, while unemployment increased by 6,000 over the month, resulting in a workforce gain of 12,000 in January.

"The state’s unemployment rate and total labor force both increased slightly in January," said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics. "Michigan businesses showed overall growth in payroll jobs this month."

The national unemployment rate declined by one-tenth of a percentage point over the month to 4.0 percent. Michigan’s January rate was 1.3 percentage points above the U.S. rate. Over the year, the national unemployment rate rose by 0.3 percentage points, while Michigan’s rate advanced by 1.3 percentage points since January 2024.

Labor force trends and highlights:

· As a result of the U.S. Department of Labor, Bureau of Labor Statistics’ (BLS) annual revision process*, Michigan’s 2024 annual average jobless rate was adjusted upward by two-tenths of a percentage point to 4.7 percent.
· Michigan’s December 2024 unemployment rate was revised up by two-tenths of a percentage point to 5.2 percent during the BLS annual revision process.
· The number of unemployed people rose by 67,000 over the year, a 33.3 percent increase since January 2024.
· The January statewide labor force participation rate advanced by two-tenths of a percentage point to 62.0 percent. Michigan’s employment-population ratio remained unchanged at 58.7 percent.

Detroit metro area unemployment rate increases in January:

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) seasonally adjusted unemployment rate advanced by one-tenth of a percentage point to 5.1 percent over the month. The region’s workforce increased by 5,000 in January.
Over the year, the Detroit MSA jobless rate rose by 1.3 percentage points. Employment receded by 31,000 and unemployment advanced by 28,000, resulting in a workforce decline of 2,000 since January 2024.

Michigan payroll employment rises in January:

According to the monthly survey of employers, Michigan seasonally adjusted nonfarm employment advanced by 9,000 over the month, or 0.2 percent, resulting in a job total of 4,518,000 in January.

Industry employment trends and highlights:

· January marked the third consecutive month of seasonally adjusted job gains in the state.
· Michigan’s private education and health services recorded the most significant over-the-month numerical employment gain during January (+7,000).
· Over the year, total nonfarm jobs rose by 45,000, or 1.0 percent.
· Industries with the largest over-the-year payroll gains included private education and health services (+30,000), leisure and hospitality services (+12,000), and government (+11,000).
· Manufacturing recorded the greatest decline of all industries both over the month (-4,000 jobs or -0.6 percent) and over the year (-20,000 jobs or -3.2 percent).