Labor force participation increased in Michigan from 2015 to 2016, reversing a decline from the previous year. The labor force participation rate in Michigan is 4.5 percentage points less than the “Top Ten” average and 1.7 percentage points less than the peer state average. Michigan’s labor force participation rate in 2016 was lower than that for 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.