If nothing else, Michigan can claim it’s not the worst state in the republic.

A new analysis of the state’s unemployment situation ranked Michigan among the states with the worst changes in their unemployment rates.

According to a new review from the personal finance site WalletHub, the Wolverine State ranked No. 48, ahead of only Kentucky, Nevada and South Carolina. Nationally, South Dakota, Connecticut, and New Hampshire are ranked as the states with the best unemployment rate changes.

Go Ad-Free, Get Content, Go Premium Today - $1 Trial

WalletHub compared all 50 states and the District of Columbia to understand how unemployment rates are changing nationwide. It used six key metrics and compared unemployment rate statistics from December 2024, the latest available data, to key dates in 2019, 2020, 2023 and 2024.

“Michigan’s No. 48 ranking in unemployment indicates some ongoing struggles in the state’s job market,” WalletHub writer and analyst Chip Lupo told The Midwesterner via email.

“While the unemployment rate of 5.0% isn’t the highest, it reflects a 3.2% increase from November 2024 and a 21.6% rise compared to December 2023,” Lupo added. “These numbers point to persistent challenges in Michigan’s economy, suggesting that the state is still dealing with significant employment issues despite overall economic growth. Factors like inflation and shifts in the job market likely play a role in this trend.”

According to the WalletHub analysis, the Great Lakes State’s dismal ranking is driven by its higher-than-average unemployment rate, which increased by 21.6% from December 2023 to December 2024.

Go Ad-Free, Get Content, Go Premium Today - $1 Trial

How do you feel President Trump is doing on the border and illegal immigration?

By completing the poll, you agree to receive emails from The Midwesterner, occasional offers from our partners and that you've read and agree to our privacy policy and legal statement.

“The state’s struggles with job retention and a 34.9% rise in continued unemployment claims highlight ongoing workforce challenges,” Lupo said.

“To improve its ranking, policymakers should prioritize workforce development by investing in skills training for in-demand sectors like tech and healthcare,” Lupo added. “Supporting small businesses and diversifying the economy beyond manufacturing could also foster job creation. Additionally, targeted regional development and incentives for job retention would help address Michigan’s labor market difficulties.”

Regionally, Illinois ranked 46th, Indiana ranked 44th, Ohio ranked 40th, and Wisconsin came in at ninth place.

The state’s industry mix and reliance on auto manufacturing, coupled with the on-again, off-again EV mandate, didn’t help.

“Michigan’s industry mix, particularly its reliance on auto manufacturing and the transition to electric vehicles, could influence the state’s unemployment trends,” Lupo said. “However, this factor was not explicitly considered in our report.

“The fluctuating nature of the EV mandate and the cyclical challenges within the auto sector may contribute to the slower recovery currently ongoing in Michigan,” Lupo added. “While it’s an important consideration, our analysis focuses on broader unemployment changes and factors such as the overall economic recovery and job market conditions.”

Michigan’s jobless numbers are among the worst in the country, and state labor officials conceded that after three consecutive years of jobless rate declines, the state’s annual average unemployment rate rose during 2024.

Interestingly, the rankings don’t necessarily break down by region, and the best- and worst-performing states aren’t necessarily clustered in a particular region. However, some commonalities exist among the states at the bottom and top of the list.

“The states at the bottom of the unemployment rankings: Kentucky, Nevada, South Carolina, and Michigan, are geographically spread out but share challenges such as slow recovery from pandemic job losses and structural economic issues,” Lupo said. “These states have shown minimal improvement in unemployment since 2020, reflecting persistent roadblocks in their job markets.

“In contrast, high ranking states like South Dakota and Vermont demonstrate stronger economic recovery and lower unemployment rates, which highlights the broader factors beyond regionality that influence job market outcomes,” Lupo added.