Updates About Economy

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.

On Tuesday, June 21, Governor Gretchen Whitmer sent a letter to President Joseph R. Biden urging him to work with members of Congress to pause the federal gas tax as prices at the pump rise. On June 22, President Biden called on Congress to pass legislation to suspend the federal gas tax through September. Whitmer’s full letter to the President can be found here.

Previously, the Michigan State Senate passed legislation to suspend the state’s gas tax and sales tax on motor fuel from June 15 until September 15. The legislation has been referred to the House committee on Tax Policy for further consideration.