—
LANSING, Mich. (WLNS) — As Michigan marks Labor Day, a new report is highlighting challenges facing workers across the state, including unemployment, increased competition for available jobs and continued changes in Michigan’s manufacturing sector.
The Michigan League for Public Policy released its 2026 Labor Day Snapshot examining Michigan’s workforce and economy.
According to the report, Michigan had the eighth-highest unemployment rate in the country in June. The state’s unemployment rate stood at 5%, compared to the national rate of 4.2%.
Laura Ross, communications director for the Michigan League for Public Policy, said changes within Michigan’s manufacturing industry are contributing to the state’s current labor market.
“Our economy is still adjusting to a shrinking manufacturing sector,” Ross said. “We lost 19,200 manufacturing jobs last year alone, and the industries that are potentially replacing them just don’t create nearly as many jobs.”
The report also found there are approximately 1.2 job seekers for every available job in Michigan.
“For every open position, there’s more than one person competing for it,” Ross said. “So even qualified job seekers are facing real competition and longer job searches than they would in a healthy market.”
The report also points to challenges for those who remain unemployed for extended periods. Michigan’s unemployment insurance exhaustion rate was 30% in June, meaning nearly one in three job seekers receiving unemployment benefits exhausted those benefits before finding another job.
Labor unions are another part of Michigan’s changing workforce. According to the report, 14.2% of Michigan workers are currently represented by a union.
Harold Pope, a retired automotive worker who previously belonged to a union. (WLNS)
Harold Pope, a retired automotive worker who previously belonged to a union, said he believes unions continue to play an important role for workers.
“Unions are absolutely relevant,” Pope said. “Even if their numbers have reduced, still they’re relevant for the people that they recognize and that they represent.”
Ross said the unemployment rate alone does not capture everyone who has left Michigan’s labor force.
According to the League, labor force participation has fallen 1.7% this year, representing approximately 125,000 people. Ross said people may leave the labor force for a variety of reasons, including retirement, caregiving responsibilities, health concerns or difficulty finding employment.
The League’s report also recommends several policy changes it says could strengthen Michigan’s workforce, including measures related to wages, childcare affordability, worker organizing, transportation and education.
Copyright 2026 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.For the latest news, weather, sports, and streaming video, head to WLNS 6 News.
