Updates About Jobs

Governor Whitmer touted Michigan’s strong job growth with the addition of 27,000 jobs in Fiscal Year 2024, signaling ongoing economic expansion. The construction sector reached a two-decade high, employing over 200,000 people, while Michigan’s labor participation rate rose above 62%—its best level since 2009. Key data from the Department of Technology, Management and Budget (DTMB) shows Michigan’s unemployment rate at 4.5%, with average manufacturing wages up 5% year-over-year, outpacing inflation.

The Governor has pursued several initiatives to fuel this growth, including $21.3 billion in clean energy and battery projects, a $500 million Make it in Michigan Fund, and a new Innovation Fund to foster local businesses. These efforts have contributed to Michigan’s leadership in the auto and clean energy sectors, record construction employment, and rapid small business growth, making the state a top performer in job creation and business climate.

The Michigan Supreme Court issued an order clarifying the implementation of the state’s minimum wage increase plan, confirming that the Department of Labor and Economic Opportunity and the Department of Treasury’s calculations were accurate. The court ruled that inflation adjustments should be calculated starting from January 1, 2019, through July 31, 2024, resulting in a gradual increase in the minimum wage to $12.48 in 2025 and up to $14.97 by 2028.

The court also addressed a missed phase-in percentage for tipped wages, clarifying that tipped workers’ wages would reach 100% of the regular minimum wage by 2030, correcting their initial projection of 2029. Justice Elizabeth Welch provided a concurring opinion, while Justices Brian Zahra and David Viviano dissented. Treasury must submit the finalized wage figures by November 1, 2024.

In April, unemployment rates fell in 15 of Michigan’s 17 labor market areas, according to the Department of Technology, Management and Budget. Prior to this spring, all 17 areas experienced a year-over-year increase in unemployment, with a median rise of 0.5%. However, beginning in April there was a median decrease in unemployment at a rate of 0.2%, with rates ranging from 3% to 6.8%. The largest reduction was in Northeast Lower Michigan, while Flint and Muskegon saw no change.

Over the past year, employment rose in 14 markets, with a median increase of 1.2%, and Niles showing the most growth. Unemployment rate reductions were noted in 68 of 83 counties, with Livingston County having the lowest rate of unemployment at 2.5% and Mackinac County with the highest at 14.3%. The Upper Peninsula saw the biggest decrease in labor force levels at 1.1%, but there was a median decrease of 0.7% across the state. The sectors with the most added employment opportunities were professional and business service industries and construction.