Michigan maintained its second-worst unemployment rate among the 50 states in May despite the state’s official percentage of joblessness improving slightly, according to data released Tuesday by the U.S. Bureau of Labor Statistics.

Michigan’s seasonally adjusted unemployment rate moved from 5.5% in April to 5.4% in May, the third straight month that Michigan ranked 49th among the 50 states. Only Nevada, at 5.5%, had a larger unemployment rate in May.

The national unemployment rate was steady at 4.2% last month.

Michigan’s jobless percentage had generally been trending upward for about two years before the decrease in May. Data from the Michigan Department of Technology, Management and Budget showed that while the number of unemployed people in the state dropped by about 1,000 from April to May, the total civilian labor force had dropped by about 7,000.

“Michigan’s labor market remained stable over the month, with a minor unemployment rate reduction in May,” said Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics.

Over the last year, Michigan is one of 24 states that have experienced an increase in the statewide unemployment rate, according to the national jobless data. Michigan’s rate went from 4.5% in May 2024 to 5.4% in May 2025, the second-largest jump among the 50 states.

Only Mississippi, where the percentage has gone from 2.8% to 4.0%, faced a bigger increase in the percentage of unemployed adults.

Over the last year, drops in manufacturing jobs have helped drive the unemployment jumps in Michigan, where much of the economy is tied to the fate of the auto industry.

In May 2024, Michigan had 610,000 manufacturing jobs. A year later, there were about 599,000 jobs in the manufacturing sector, a loss of about 11,000 jobs, according to the state’s tracking data.

In May, California had the third-highest unemployment rate among the 50 states, at 5.3%. Kentucky was at 5.0%, while Ohio and Rhode Island were at 4.9%.

Michigan and California were tied for the second-worst unemployment rate nationally in February. Michigan’s percentage began exceeding California’s in March.

South Dakota had the lowest unemployment rate nationally in May at 1.8%. North Dakota was next at 2.5%, and Vermont was third at 2.6%.