Updates About Economy

On September 6, Governor Gretchen Whitmer signed an executive directive titled ‘Lowering Costs for Families with the Inflation Reduction Act’, presented as an effort to utilize opportunities from the federally passed Inflation Reduction Act (IRA).

Executive Directive 2022-9 instructs state departments to identify ways to educate Michiganders on opportunities to lower costs on energy upgrades, electric vehicles, transportation, and prescription drug costs.

Under the directive, the Michigan Department of Health and Human Services (MDHHS) and Department of Insurance and Financial Services (DIFS) are expected to ensure that eligible residents have the information needed to apply and receive tax credits for health insurance purchased on the marketplace. MDHHS is also encouraged to continue efforts to decrease the cost of prescription drugs for Medicaid recipients.

In the month of July, Michigan saw a decrease in the seasonally adjusted jobless rate by one-tenth of a percentage, dropping to 4.2 percent. Although Michigan has seen a precipitous drop in the unemployment rate year over year – from 6.2 percent to 4.2 percent – Michigan’s jobless rate remains behind the national average, which for July was 3.5 percent.

The Michigan Department of Technology, Management & Budget (DTMB) reported that statewide, employment increase by 8,000 jobs and unemployment was reduced by 5,000, leading to an overall workforce gain of 3,000 jobs.

Michigan’s nonfarm jobs saw the greatest increase at 3.1 percent. This was followed by leisure and hospitality at 2.6, and retail trade at 0.5 percent.

For the first time in almost ten years, Fitch Ratings boosted Michigan’s credit rating from AA to AA+ with a “stable outlook”.

In its report Fitch increased the credit rating to reflect Michigan’s higher level of fiscal resilience and diversified economy, as well as fiscally responsible budgeting and efforts to address debt. The state has also managed economic risks through increased fiscal reserves, paying down liabilities, and practicing conservative budgeting and revenue forecasting. With the rainy-day fund having been replenished, Michigan has maintained structural balance.