Updates About Economy

The Michigan Senate broke records during lame duck with a 29-hour session that ran from 10 a.m. Thursday to 3:01 p.m. Friday, passing over 90 bills before adjourning. Senate Democrats prioritized salvaging as much legislation as possible after House Democrats were unable to maintain a quorum due to a missing Democratic member and a Republican walkout. While most bills were passed in their original form and are now headed to the Governor’s desk, some were amended and sent back to the House, where they are unlikely to advance unless the House reconvenes earlier than December 31.

¶Key Bills Passed by the Senate:

• Requirement for Michigan schools to supply information to parents on firearm storage rules each year
• Allowing pharmacists to prescribe contraceptives and to require coverage of pharmacist-prescribed birth control methods
• Maternal Health bills designed to address the state’s high maternal mortality rates
• Lifting medical benefit plan caps to raise the amount public employers can contribute towards staff healthcare plans
• Prohibiting law enforcement from selling firearms obtained in gun buyback programs and requiring firearms obtained through buyback programs to be destroyed
• School Safety and Mental Health bill package intended to standardize school safety requirements

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.