Labor force participation decreased in Michigan from 2014 to 2015, a reversal of the previous year’s trend. The labor force participation rate in Michigan was six percentage points less than the “Top Ten” average and three percentage points less than the peer state average. Michigan’s labor force participation rate in 2014 was lower than that of all peer states except for Alabama and Tennessee.
What It Is: The share of the population age 16 and older, not including residents who are on active duty or institutionalized, that is employed or looking for work.
Why It Matters: Members of the working-age population can stop looking for work and drop out of the labor force due to many reasons, including disability, old age, or discouragement. Higher labor force participation is a sign of a healthier economy and workforce.