It is getting closer to being number one.
Michigan’s unemployment rate rose to 5.5% in March, nearing Nevada’s rate of 5.7%, which decreased slightly by 0.1%. While California’s unemployment rate remained steady at 5.4% and Kentucky saw a drop from 5.4% to 5.2%, Michigan’s rate climbed for the 12th consecutive month, making it the second highest in the U.S.
This March increase, which added about 5,000 people to the unemployment rolls, is part of a larger trend. Compared to March 2024, Michigan’s unemployment rate has surged by 1.3 percentage points, the largest increase in the country. Over the past year, the number of unemployed residents in Michigan has grown by 69,000, a 32.9% rise, with 279,000 people out of work in March 2025 compared to 210,000 the previous year.
Nationally, the unemployment rate rose by 0.1% to 4.2%, according to the Michigan Department of Technology, Management, and Budget. Michigan’s unemployment has now reached its highest level since September 2021, with payroll jobs in the state showing a decline, particularly in the manufacturing and professional services sectors.
In March, Michigan saw significant job losses, including 5,000 in manufacturing, 4,000 in professional and business services, and 1,000 in construction. However, the state did see some gains, with 2,000 new government jobs and small increases across retail, financial services, and the leisure and hospitality sectors. Despite concerns over federal job cuts, Michigan’s growth was mostly in state and local government positions.
The job loss trend has continued into April, with new unemployment claims in Michigan rising by 38%, reaching 6,500 last week compared to the same time last year, further indicating the state’s ongoing employment challenges.
