In Jobs and Economy, News Releases

FOR IMMEDIATE RELEASE
September 1, 2025

Contact:
Laura Millard Ross
lauramr@mlpp.org
517-281-1084

League’s new Labor Day report takes a close look at employment in Michigan and highlights the opportunities to better support workers, build a stronger state economy

Report reveals that Michigan had the fourth-highest unemployment rate in the country as of June 2025 and that racial and gender disparities in wages continue to be a problem

Lansing—Michigan’s unemployment rate climbed faster than the national average over the past year and unemployment rates in many rural communities are signaling more significant economic distress, according to a new Labor Day report,  A Snapshot of Michigan’s Workforce, from the Michigan League for Public Policy. The report also reveals that wage gains in Michigan have begun to erode due to higher costs and there continue to be significant wage disparities for Black and Hispanic workers as well as women, specifically women of color.

According to the report, Michigan had the fourth-highest unemployment rate in the country at 5.3% as of June 2025, while the national average is 4.1%. And of Michigan’s 83 counties, 54 have an unemployment rate of 6% or more — many of the counties are largely made up of rural communities. The issue for many Michigan communities is that there are simply not enough jobs, especially ones that pay well and offer benefits. 

The report also takes a deep dive into labor rights and how a decline in union membership and anti-worker policies have made it more difficult for Michigan workers to be fairly compensated for the work they do, while also stripping away other important worker protections. 

“This Labor Day, as we honor our state’s deep roots in the labor movement and the significant contributions of Michigan’s workers, it’s important to take a close look at the current health of our workforce and what we can be doing to better support the people who make up the backbone of our economy,” said Monique Stanton, President and CEO of the Michigan League for Public Policy. “This new report not only provides a comprehensive look at where Michigan stands in terms of unemployment, wages, wage equity and labor rights, it also provides critically important recommendations for how we can move forward in lifting up our workforce.”

There are several recommendations featured in the report, including eliminating Public Act 98 of 2011 and Public Act 105 of 2015 — two anti-worker laws in Michigan that respectively weaken builder trade unions’ ability to negotiate terms of employment and limit the tools local governments have to promote worker rights, attract and maintain talent, and maintain higher labor conditions. The report’s recommendations also include making the minimum wage a living wage; eliminating the tipped wage; and removing barriers to employment, such as investing more in public transit, thoroughly funding Michigan’s schools, and reducing the costs of post-secondary education and other training programs. Increasing scholarship reimbursements for child care facilities is also recommended, as it would go a long way in making child care more accessible and affordable for working parents and guardians, while also increasing wages for child care workers — a critical sector of Michigan’s labor force that is facing a worker shortage. 

“While there is an overall job shortage in Michigan, there are some sectors of the state’s workforce where workers are urgently needed. This includes the child care and construction workforce,” said Stanton. “If we want Michigan to be a state where working families can raise young children and support the growing demand for newly built homes, we need to be making the jobs in those industries more desirable for prospective candidates. Eliminating anti-worker laws that deter people from working in construction trades and raising the pay for child care workers, who are primarily women and are significantly underpaid, should both be top priorities.”

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The Michigan League for Public Policywww.mlpp.org, is a nonprofit policy institute focused on opportunity for all. Its mission is to advance economic security, racial equity, health and well-being for all people in Michigan through policy change. It is the only state-level organization that addresses poverty in a comprehensive way.