Updates About Economy

On February 13, Governor Gretchen Whitmer, alongside Ford’s Executive Chair Bill Ford and CEO Jim Farley, announced Ford’s $3.5 billion investment into the state to build an electric vehicle battery manufacturing facility. This help contribute to Ford’s goal to produce two million electric vehicles annually by 2026.

Located in Marshall, the 2.5 million square foot plant is expected to create 2,500 jobs in the region. These jobs are estimated to create more than $29.7 billion in new personal income over the span of twenty years with the help of expected spin-off investment and redevelopment opportunities.

The Michigan Strategic Fund (MSF) approved $210 million for the Critical Industry Program, $772 million for the MSF Designated Renaissance Zone, and $36 million for the Marshall Area Economic Development Alliance.

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.