News Summary

Initial unemployment claims in Michigan have surged to 6,748, marking a troubling trend amidst a decline nationwide. This increase follows a significant spike in early May and is influenced by notable layoffs in sectors like manufacturing and food services. Even as the national claims decrease, Michigan’s unemployment rate is rising, compounded by WARN Act notices indicating potential mass layoffs. However, pending legislation will enhance unemployment benefits for Michiganders, providing some relief amidst ongoing economic challenges.

Detroit, Michigan – Initial filings for unemployment benefits in Michigan have increased, marking a troubling trend amid a national decline in unemployment claims. For the week ending June 28, the state recorded 6,748 new jobless claims, a rise from 5,957 claims filed the previous week, according to the U.S. Department of Labor. This uptick comes as the national unemployment claims decreased to 233,000, reflecting a drop of 4,000 from the prior week.

Michigan was not alone in this situation, as Kansas reported the most significant percentage increase in weekly claims, soaring by 51.7%. Conversely, Delaware had the largest reduction, witnessing a decrease of 58.5% in new claims. These figures illustrate a varying landscape of unemployment claims across different states.

The increase in Michigan’s unemployment claims follows a significant spike observed in early May, when new weekly claims surged by nearly 130%, reaching 12,287 from 5,381 the week before. This drastic rise pushed Michigan’s new weekly claims to exceed 6,000 for several months, a level that has been persistently high compared to the trends of the last two years. The hardest-hit sectors during this period were manufacturing, accommodation and food services, and administrative/support services.

Despite the current rise in claims, the total seasonally adjusted initial claims for unemployment benefits in the U.S. for the week ending May 3 were reported at 228,000, marking a decrease of 13,000 claims from the previous week. However, this has not alleviated the strain within Michigan, where the unemployment rate surpassed the national average, climbing to 5.5% in March from 4.2% a year prior. Manufacturing, in particular, suffered significant job losses in March, with the sector losing 5,000 jobs compared to the preceding month, and the professional and business services sector losing 4,000 jobs.

The situation has been compounded by a number of companies in Michigan filing WARN Act notices, signaling potential mass layoffs or closures. Notable layoffs occurred at Akasol, which let go of 188 workers in April, and Flagstar Bank, which announced plans to lay off 400 employees in February.

On a brighter note, Michiganders eligible for unemployment benefits will benefit from an increase in payouts starting April 2, 2025. The maximum unemployment benefit is set to rise from $362 to $446, with additional increases planned to $530 in 2026 and $614 in 2027. Furthermore, the number of weeks for which benefits can be claimed will extend from 20 to 26 weeks under new legislation signed by Governor Gretchen Whitmer.

These changes aim to provide relief amid the ongoing economic challenges faced by many residents. A retroactive review will also be conducted for active claims filed between January 1 and April 2, 2025, to determine eligibility for the enhanced benefits. Additionally, the amount for dependents will increase from $6 to $12.66 each in 2025 and $19.33 in 2026, eventually rising to $26 in 2027.

Residents are advised to ensure their Michigan Web Account Manager (MiWAM) accounts are up-to-date and to remain vigilant for any requests for information from the Unemployment Insurance Agency. As the economic landscape continues to shift, these updates on unemployment claims will be critical for many Michiganders facing uncertainty at work.