Michigan unemployment rate lowest since March 2020


The latest unemployment data show Michigan is trending downward to reach its lowest number of claimants since the start of the pandemic.

According to the Bureau of Labor Statistics, Michigan had about 530,000 people claiming unemployment for the week ending June 12.

The state had seen between 600,000 and 900,000 people claiming unemployment benefits every week since the start of the year. Previously, the smallest drop was in February with about 590,000 people claiming benefits.

There were 1,862 new claimants added for the week ending June 19. Michigan was one of only three states with an increase of over 1,000 new applicants for that period. The state cited layoffs in the auto industry as the reason for the rise.

Looking at national trends, personal finance website WalletHub places Michigan at No.5 in the recovery since last week and No.13 since the start of the pandemic. WalletHub’s analysis found that Michigan’s jobless claims this week were the fourth smallest increase nationwide since 2020.

Compared to the same period last year, jobless claims in Michigan were down 84.83%. Comparing the same week to pre-pandemic claims in 2019, Michigan had 15.66% fewer new claims, according to WalletHub.

(Can’t see the graph? Click here.)

Michigan is still among the states – about half the country – that have not given up on the extra $ 300 in federal unemployment benefits. Of Michigan residents claiming unemployment, approximately 439,000 claim federal benefits.

An analysis by a progressive think tank The Century Foundation found that states that have ended the federal supplemental unemployment offer are below the national average for replacement rates. Replacement rates estimate how much of a worker’s salary before being unemployed is covered by unemployment benefits.

Michigan exceeds the national average of 59% with a replacement rate of 72.2%.

Neighboring states of Ohio and Indiana have both ended additional federal payments. In Ohio, this rate is 43.3% and in Indiana 33.3%.

Nationally, federal claims for pandemic unemployment assistance, pandemic emergency unemployment compensation and extended benefits are all declining.

Related: Unemployment offices will reopen for appointments on June 30; no appointment

June also marks the first month since Michigan reinstated its job search obligation after it was suspended during the pandemic. Job search is mandatory for those receiving benefits under the state’s regular unemployment insurance program as well as federal benefit programs.

Governor Gretchen Whitmer recently announced that $ 3.8 million will be invested in the Michigan Works employment program! to fund individual job search counseling for those who are eligible for the Re-employment and Eligibility Assessment Services (RESEA) program.

It is estimated that this funding will serve 21,476 applicants. This funding neither extends nor contributes to the services, but rather finances RESEA staff.

The most recent federal data puts Michigan’s unemployment rate for May at 5%, breaking the field nationally, tied with Ohio and Tennessee for the 25th rankings, according to the Bureau of Labor Statistics.

For comparison, in May 2020, Michigan’s unemployment rate was 20.8%.

The US Department of Labor said the overall unemployment rate was 5.9% for June. The United States added 850,000 jobs to the economy, including 343,000 jobs in recreation and hospitality. The economy is growing faster than at any time in 40 years, according to the Ministry of Labor.

More on MLive:

Whitmer calls for stimulus money to be spent on $ 15 hourly wages, transition to unemployment

Michigan offers solutions to labor shortage – but reducing unemployment is not an option

The post-pandemic office? Western Michigan is working on it.


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