June's unemployment rate of 8.7 percent was up 0.3 point from May.
About 418,000 people remain unemployed in Michigan.
The rate has dropped a half-point from July 2012's 9.3 percent, according to the report from the Department of Technology, Management & Budget.
Michigan's jobless rate remains higher than the nation's July rate of 7.4 percent, which fell from 7.6 percent in June.
Michigan's civilian labor force rose by 9,400 to 4.728 million in July, while the number of those working held steady at 4.31 million, the department said.