Updates About Jobs

Last week, Governor Gretchen Whitmer delivered her “Road Ahead Address” at the Detroit Auto Show, focusing on Michigan’s economic future and the critical role of our auto industry. She highlighted bipartisan achievements, including passing over 1,400 bills, and outlined her vision for Michigan to lead the evolving “auto ecosystem,” encompassing battery factories, software companies, and advanced manufacturing.

Whitmer proposed replacing expiring economic tools like the bipartisan job fund and road bonding plan with innovative initiatives such as a “Make it in Michigan” job fund, tax incentives for hiring Michigan workers, and investments in housing, transit, and infrastructure. She emphasized collaboration with both state and national leaders to secure Michigan’s position as an auto industry leader and safeguard its economy from global competition.

Additional insight on Whitmer’s goals for the 103rd legislature will be revealed in February during her State of the State Address and presentation of the Fiscal Year 2025-2026 Executive Budget Recommendations.

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.

The Michigan Supreme Court issued an order clarifying the implementation of the state’s minimum wage increase plan, confirming that the Department of Labor and Economic Opportunity and the Department of Treasury’s calculations were accurate. The court ruled that inflation adjustments should be calculated starting from January 1, 2019, through July 31, 2024, resulting in a gradual increase in the minimum wage to $12.48 in 2025 and up to $14.97 by 2028.

The court also addressed a missed phase-in percentage for tipped wages, clarifying that tipped workers’ wages would reach 100% of the regular minimum wage by 2030, correcting their initial projection of 2029. Justice Elizabeth Welch provided a concurring opinion, while Justices Brian Zahra and David Viviano dissented. Treasury must submit the finalized wage figures by November 1, 2024.