Michigan vs. Its Neighbors: September State Jobs Data for Employers (Oct. 21, 2026)
The U.S. Bureau of Labor Statistics released its September numbers for every state yesterday, and Michigan stands out, for good and bad reasons if you're an employer. Here's a plain-language look, as of October 21, 2026, at how Michigan compares with Ohio, Indiana and the rest of the region, and what it means if you need to hire.
Michigan's jobless rate is among the highest in the country
In the BLS State Employment and Unemployment report (opens in a new tab) for September 2026, Michigan's unemployment rate was 5.0 percent, unchanged from August and up from 4.9 percent a year earlier. The national rate was 4.2 percent. Michigan was one of only two states, along with California at 5.1 percent, whose rate was significantly higher than the U.S. figure. The District of Columbia was also higher, at 5.6 percent.
Our neighbors look very different. Ohio and Indiana were both at 3.4 percent, and Wisconsin was at 3.2 percent. South Dakota had the lowest rate in the country at 2.0 percent.
The bigger story: fewer people in Michigan's workforce
From BLS table 1 (opens in a new tab) (seasonally adjusted), Michigan's civilian labor force, meaning people who are working or looking for work, fell to 4,826,439 in September from 5,004,120 a year earlier. That is about 178,000 fewer people in the state's workforce, a drop of roughly 3.6 percent. About 241,000 Michiganders were unemployed.
For employers, that matters more than the jobless rate. A higher rate suggests more people are available, but a shrinking labor force means the overall pool of workers is getting smaller. Many of the people still looking may not have the skills, schedule or reliability a plant or warehouse needs.
Payrolls are flat across the region
From BLS table 3 (opens in a new tab), nonfarm jobs located in each state (seasonally adjusted):
| State | Unemployment rate, Sept. | Total jobs, Sept. | Change from Sept. 2025 | Manufacturing jobs, Sept. |
|---|---|---|---|---|
| Michigan | 5.0% | 4,487,400 | +2,000 | 583,800 |
| Ohio | 3.4% | 5,688,300 | +18,700 | 686,600 |
| Indiana | 3.4% | 3,257,300 | −12,900 | 520,800 |
| Wisconsin | 3.2% | 3,043,300 | +13,000 | 457,800 |
| Illinois | 4.6% | 6,164,500 | +13,800 | 571,100 |
- Michigan lost about 6,300 jobs from August to September (4,493,700 to 4,487,400), though BLS treats a change that size as essentially unchanged.
- Michigan factories held steady. Manufacturing jobs edged up to 583,800 in September from 583,100 in August, about 1,600 below a year earlier.
- Ohio and Indiana added factory jobs over the year. Ohio manufacturing rose by about 12,300 and Indiana by about 4,700, which means more competition for the same skilled production workers along the I-75 and I-69 corridors.
- Nationally, only two states added a significant number of jobs in September (New Jersey and South Carolina), and only Wisconsin lost a significant number, down 13,700.
Layoffs are still low
The U.S. Department of Labor's weekly claims report (opens in a new tab) released October 15 showed 199,000 seasonally adjusted initial jobless claims for the week ending October 10, with a four-week average of 198,500. Companies are holding on to their people, so experienced workers aren't flooding the market even where unemployment is higher.
What this means for employers
- Don't assume a 5 percent rate means easy hiring. Michigan has more people out of work than its neighbors, but its workforce is smaller than a year ago. Finding the right people still takes real screening.
- Watch the border states. If you hire near Toledo or northern Indiana, you're competing with tighter labor markets where unemployment is 3.4 percent.
- Reach people who aren't applying. Many good workers aren't scrolling job boards. A recruiter with a ready network can reach them faster.
- Try temp-to-hire. It gets someone on your floor now and lets you see their work before making a permanent offer.
New weekly jobless claims come out tomorrow, October 22. BLS releases September numbers for metro areas, including Monroe and Detroit, on October 28, and September JOLTS data on November 3. We'll keep tracking them here.
Let us fill your open seats
Aggressive Hiring Group is a woman-owned, family-run staffing agency in Monroe, MI, placing workers for employers nationwide for 12 years. We keep a network of pre-screened industrial, warehouse, logistics, office and technical candidates ready to go, and every one goes through our screening process, including background and reference checks and 10-panel drug screening. If you need people, call us at 734.785.8968, Monday through Friday, 9 AM to 5 PM, or request staff online.
Sources: U.S. Bureau of Labor Statistics, State Employment and Unemployment — September 2026 (released Oct. 20, 2026), news release and tables 1 and 3; U.S. Department of Labor, Unemployment Insurance Weekly Claims Report (released Oct. 15, 2026).