Updates About Economy

A recent report by the Senate Fiscal Agency (SFA) showed that Michigan’s state revenue from major taxes and net lottery earnings reached $2.9 billion in November, marking a 10.5% increase compared to one year ago. Partially credited for the increase was the $147 million above anticipated projections for collections, including $31.8 million above forecast for the General Fund and $103 million exceeding expectations for the School Aid Fund. Additional funds were allocated to entities such as the Local Community Stabilization Authority and gaming-related programs.

Income tax revenue led the growth, totaling $1.1 billion for November, an 11.4% increase from last year and $6.2 million higher than projected. Use tax collections also saw a significant 7.4% increase, reaching $234.7 million. However, not all areas experienced growth; sales tax receipts dipped 1.5% year-over-year to $843.5 million, with motor vehicle sales tax collections hitting their lowest level since June 2024.

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.

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.