Updates About Economy

According to a recently Michigan Economic Indicators (MEI) report by the Senate Fiscal Agency (SFA), Michigan’s economy showed signs of resilience in April. Our state added 16,000 jobs, the largest monthly gain in over two years, driven primarily by growth in professional, education, and health services. Manufacturing, however, continued to lag, shedding 10,000 jobs compared to the same time last year. Motor vehicle production rose by 8.2% month-over-month, but remained down 9.2% from April 2024, with Michigan’s share of national auto production at its lowest level in over a year.

Despite positive movement in employment and modest housing start gains, national consumer sentiment hit a concerning low, falling for the fourth consecutive month to one of the weakest readings since the survey began in 1952. At the same time, oil prices dipped to their lowest point since 2021, retail sales posted a healthy 4.7% year-over-year gain, and inflation in Detroit remained relatively modest at 1.4%. While some sectors are clearly under pressure, Michigan’s labor market and industrial activity continue to show pockets of strength amid broader economic uncertainty.

Read the full SFA report here.

Attorney General Dana Nessel has formally intervened in Consumers Energy’s request to raise electric rates by approximately $436 million, potentially the largest request filed in decades. The proposed hike, submitted to the Michigan Public Service Commission (MPSC), would increase electric bills for Michigan residential customers by 13.3% and take effect in May 2026, if approved. In addition to the rate increase, Consumers Energy is also seeking to recoup $24 million in deferred distribution costs through a separate 12-month charge.

The multi-billion dollar company announced the latest hike to electric rates just seven days after the MPSC approved a separate $154 million rate increase that went into effect in April. The Attorney General’s office has stated they will be closely examining the filing to prevent state residents from paying unnecessary costs.

Small businesses across Michigan are feeling the pressure of rising health care costs, with many reporting a direct impact on their ability to expand and bring on new employees. In a recent survey conducted by the Small Business Association of Michigan (SBAM), over three-quarters of respondents said the cost of offering health insurance has made hiring more difficult. More than half have already scaled back or eliminated benefits, and 83% said the expense is eating into resources they would otherwise invest in growing their business.

Even so, most small business owners still see health benefits as essential for keeping employees satisfied and onboard, with 91% calling them a key part of employee retention. Yet, affordability remains a major hurdle. Nearly 70% of employers reported that their health insurance premiums increased by more than 10% in the past year. Cost drivers such as hospital fees, prescription drug prices, and administrative overhead are pushing premiums higher, while only a small share of employers—about 10%—are negotiating directly with insurers. Many rely on high-deductible plans or higher employee contributions to make do. Industry leaders continue to urge a systemwide response to tackle rising costs, prevent further strain on local shops, and maintain health care coverage for small business employees.