Both sides point fingers as unemployment ranks third-highest nationally

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(The Center Square) – Michigan’s unemployment is still the third highest nationally, according to the August data from the U.S. Bureau of Labor Statistics.

With Michigan’s unemployment rate coming in at 5.2%, California and Nevada are the only states with higher unemployment rates.

At 5.2%, that is down 0.1% from 5.3% in the previous month.

Michigan’s unemployment rate has been consistently above the national average for months, despite declining slightly from its June high of 5.4%. In August, the national unemployment rate once again increased by 0.1% to 4.3%, meaning Michigan's is still 0.9% higher than the national average.

As of August of last year, the total number of unemployed Michiganders was 251,667. That number is now 264,043.

While Michigan Republicans and Democrats agree that Michigan's economy is hurting, they disagree on why.

Democrats point to Trump administration policies like tariffs, while Republicans argue it’s the fault of the state’s own Democrat leadership.

Gov. Gretchen Whitmer, a Democrat, has been vocal in calling out tariffs.

“Working families and businesses are feeling the squeeze,” she said. “Tariffs are raising costs and causing businesses to take their investments elsewhere.”

The Michigan Democratic Party doubled down on that.

"Michiganders are hurting right now, with prices going up and their livelihoods being threatened because of the Trump administration’s policies," they said in a statement.

Senate Republicans responded to Whitmer's claims, stating that the blame should actually be on Whitmer’s policies, labeling it “Gretchen Whitmer’s failing economy.”

While many Democrats are pointing to tariffs, Whitmer also called out uncertainty over the state budget, which is now 80 days overdue.

“While we can’t control national tariffs, we have the power to lower costs and create jobs for Michiganders,” she said, calling for the state’s Republicans to take action on the state budget. “We all want what’s best for Michigan, so let’s get it done – together.”

Currently, House Republicans and Senate Democrats are miles apart on funding priorities, proposing vastly different budgets.

Instead of tariffs, Republicans are pointing the finger of economic uncertainty at Democrats for the delay over the budget.

“It’s time for Senate Democrats to come to the table so we can get this budget done,” said Michigan House Republicans.

This all comes as Michigan's labor force is also struggling. 

While unemployment dropped slightly in August, Michigan’s labor force fell for the fifth consecutive month to 61.5%. This is according to a report from Michigan Department of Technology, Management and Budget.