Michigan is struggling with unemployment recently, with last week’s claims 129.71% higher than in the previous week but 11.85% lower than last year, according to WalletHub’s updated rankings for the States Where Unemployment Claims Are Decreasing the Most. 

Unemployment Situation in Michigan (1=Best; 25=Avg.):

• Overall Rank for Michigan: 49^th
   
• 50^th – Unemployment Claims Decrease vs. Previous Week
   
• 10^th – Unemployment Claims Decrease vs. Same Week Last Year
   
• 47^th – Cumulative Unemployment Claims in 2025 vs. Same Period Last Year
   
• 51^st – Unemployment Claims per 100,000 People in Labor Force
   

To view the full report and your state’s rank, please visit:
https://wallethub.com/edu/states-unemployment-claims/72730

Expert Commentary

Do you think the hiring dynamic is currently tilted in favor of employees or employers?

“The hiring dynamic is currently tilted in favor of the employees in most cases, particularly those who are competent and high performers. The best recruits are already working or under contract, which puts them in a position to opt not to take up an offer that does not meet their needs and to strategically negotiate their future employment engagements. As a result, these employees may have one or multiple firms pursuing them for regular and/or temporary employment arrangements. Hence, the recent trend in talent acquisition puts equal weight on talent retention and on creating a win-win situation for both the employee and employer.”
Dr. Carolyn Wiley, PhD (UCLA), SPHR, SHRM-SCP, DipEmpLaw – Professor, Roosevelt University

“It depends on the industry. For many industries that rely heavily on lower-paid workers, it is becoming increasingly difficult to find those workers. The combination of fewer teens working plus uncertainty regarding immigration has hit these sectors hard. Farm worker shortages are particularly concerning as this may have a direct impact on food prices and food waste. However, industries in the areas more affected by the take-up of AI are starting to show a slowdown in hiring for entry-level positions, making the job market particularly tight for recent college graduates and adding to great uncertainty regarding how best to train for white-collar jobs of the future.”
Joyce P. Jacobsen – Professor, Hobart and William Smith Colleges and Wesleyan University

What are your predictions for the job market as we move forward during 2025 (job gains, hiring confidence, quit rates etc.)?

“I expect employers and employees to behave conservatively due to the unpredictability of the Trump administration on economic issues. The high degree of uncertainty around tariffs, federal funding, federal employment, etc. will likely make people risk adverse, with both employers and workers avoiding making changes.”
Jeff Rothstein, PhD – Professor; Chair, Department of Sociology, Grand Valley State University

“Continued uncertainty regarding longer-term trends as the effects of widespread AI adoption and changes in AI tools continue. At this point, recent safe havens like learning to code seem less safe. The continued uncertainty regarding the levels and effects of tariffs on domestic industries and the slowdown in the tourist industry in the US are also keeping hirers cautious as they wait to see the full effects of the current federal administration’s seesawing policies. It’s hard to imagine consumer and employer confidence rising any time soon. The best-case scenario for the year is low but positive growth rather than a turn towards recession, but 2025 may well manage to do this as the full effects of the tariffs and other administrative policies may not become clear until after the holiday season, boding less well for 2026.”
Joyce P. Jacobsen – Professor, Hobart and William Smith Colleges and Wesleyan University

Given the current circumstances, what trends do you expect to see in terms of unemployment in the foreseeable future?

“The trend I expect to see in terms of unemployment in the foreseeable future is a greater uptake. Employers contribute to unemployment insurance, to ensure access to these funds when needed. These days laid off employees are more likely to apply for it, and employees and employers have less stigma around it. Employees during the Pandemic and thereafter, found this benefit to be extremely helpful. I expect that more people will leverage unemployment funds as more layoffs occur and be less concerned about a negative impact on their future job prospects or opportunities.”
Dr. Carolyn Wiley, PhD (UCLA), SPHR, SHRM-SCP, DipEmpLaw – Professor, Roosevelt University

“Unemployment rates, which have stayed in a reasonable range for some time now, have never fully reflected the state of the job market, and that continues to be the case. In particular, discouraged workers and underemployed workers, including the many workers who do not utilize fully their formal training, are not reflected. The current job market is less about high unemployment and more about structural issues, such as the mismatch between what skills employers are looking for and what skills potential workers have. The issue for many younger and even middle-aged workers is also the inability to find a single well-paying job with full benefits, leading more workers to hold multiple part-time positions and short-term gigs.”
Joyce P. Jacobsen – Professor, Hobart and William Smith Colleges and Wesleyan University