The Michigan Unemployment Insurance Agency says it made progress improving service in 2025—but its latest annual report shows there’s still work to do, especially when it comes to payment accuracy.
For workers, the headline is this: most people who qualify for unemployment are getting paid relatively quickly. The agency says 89% of first payments were issued within 21 days, slightly better than the federal benchmark.
Appeals are also moving faster than required, with most first-level disputes resolved in about 24 days.
At the same time, the report highlights a lingering issue that has dogged the system for years—improper payments. The agency says about 21% of payments were made incorrectly, more than double the federal target of 10%. That includes both overpayments and underpayments.
What it means for workers
In total, about 307,000 claims were approved in 2025, with just over $1 billion paid out in benefits.
The average person stayed on unemployment for about six weeks, and notably, only about one-third of claimants collected benefits for the full time they were eligible—a sign many people are returning to work relatively quickly or not completing the process.
The state says 73% of people who went through reemployment programs found jobs, slightly above national targets.
What it means for employers
Employers paid about $1.14 billion in unemployment taxes last year, spread across roughly 249,000 Michigan businesses.
The agency also resumed collecting past overpayments in 2025 after a pause tied to pandemic-era disputes and court rulings. So far, it has recovered about half of those overpaid funds, still below federal expectations.
Technology changes coming
One of the bigger changes on the horizon is a long-awaited upgrade to the state’s unemployment system.
The UIA says it plans to roll out a new platform, called MiUI, to replace the aging MiWAM system that many users have complained about for years. The goal is to make filing claims, resolving issues, and communicating with the agency easier and more reliable.
Bottom line
The state’s unemployment system is performing better in some key areas—especially speed—but accuracy remains a concern.
For workers, that means benefits are generally arriving on time, but mistakes still happen often enough to cause frustration. For employers and taxpayers, it’s a reminder that oversight and modernization efforts are still very much a work in progress.
UIA 2025: By the Numbers
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$1.024 billion — Total unemployment benefits paid
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307,648 — Claims approved statewide
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89% — First payments made within 21 days
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6 weeks — Average time on unemployment
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31.6% — Claimants who received full eligible benefits
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24 days — Average time to resolve first appeals
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36 days — Second-level appeals resolution
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21% — Improper payment rate (above federal target)
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50% — Overpayments recovered since collections resumed
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73% — Employment rate after reemployment services
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$1.14 billion — Taxes paid by employers
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249,255 — Michigan employers contributing to the system
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586,921 — Customer service calls handled
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119,719 — Appointments (in-person, phone, virtual)
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3.3 million — Website visits
