Yen Archer, Economic Specialist
Wages for Michigan workers continued to increase in 2025, although the pace and distribution of growth varied across occupations and regions. The statewide median hourly wage across all occupations rose from $23.22 in 2024 to $23.69 in 2025, an increase of 2.0 percent. Average hourly earnings for private-sector workers increased 3.0 percent to $33.35. Consumer prices rose 2.6 percent during the year, indicating a modest increase in real hourly earnings for private-sector workers. Median wages increased in all 10 prosperity regions.
Michigan’s average hourly earnings for private sector workers increased to $33.35 in 2025, up 3.0 percent from $32.37 in 2024. Over the same period, prices rose 2.6 percent and real hourly wages increased by approximately 0.4 percent after adjusting for inflation. Over the past decade, wage growth exceeded inflation in most years, except during the inflation surge from 2021 through 2023. By 2025, both rates had moderated, and wage growth once again slightly exceeded price growth.
Inflation Rates Compared to Average Hourly Wage Growth in Michigan, 2016–2025
Sources: Current Employment Statistics and Consumer Price Index, U.S. Bureau of Labor Statistics
Average hourly earnings for private sector workers fluctuated during 2025, rising from $33.23 in January to a peak of $34.01 in November before easing slightly to $33.92 in December. In 2026, average hourly earnings reached $34.41 in February before falling to $34.01 in June. This coincided with higher inflation levels in early 2026.
Median wages varied across Michigan’s prosperity regions in 2025, reflecting differences in local industry and occupational composition. The Detroit Metro prosperity region had the highest median wage of $25.61 per hour; while the Northeast region had the lowest median at $21.12. The difference was $4.49 per hour, or 21.3 percent. With a median wage of $25.38 per hour, South Central was the only other prosperity region—along with Detroit Metro—to exceed the statewide median of $23.69 per hour. In both regions, the highest-paying major occupational groups included Management; Computer and mathematical; Architecture and engineering; Legal; and Healthcare practitioners and technical occupations.
Wage growth also differed across regions between 2024 and 2025. The Northeast region recorded the largest increase in median wages, at 4.6 percent; while West Michigan experienced the smallest increase, at 0.8 percent. Statewide, the major occupational groups with the largest median wage increases were Educational instruction and library (+12.5 percent); Legal (+11.7 percent); Arts, design, entertainment, sports, and media (+11.2 percent); Personal care and service (+8.4 percent); and Food preparation and serving related (+8.0 percent).
| Prosperity Region | 2024 | 2025 | Over-the-Year Percent Change |
| Detroit Metro | $24.69 | $25.61 | 3.7% |
| South Central | $24.34 | $25.38 | 4.3% |
| Southeast | $23.17 | $23.65 | 2.1% |
| Southwest | $22.44 | $22.85 | 1.8% |
| West | $22.61 | $22.78 | 0.8% |
| Upper Peninsula | $21.62 | $22.48 | 4.0% |
| Northwest | $21.75 | $22.36 | 2.8% |
| East Central | $21.92 | $22.33 | 1.9% |
| East | $21.58 | $22.10 | 2.4% |
| Northeast | $20.20 | $21.12 | 4.6% |
Source: Occupational Employment and Wage Statistics, U.S. Bureau of Labor Statistics
Michigan’s occupational wage distribution continued to shift toward higher wage ranges in 2025, reflecting wage growth among lower-paying occupations and changes in the types of jobs held by Michigan workers. The share of employment in occupations with median wages below $15 per hour declined to 12.0 percent, down from 14.2 percent in 2024 and 16.8 percent in 2023. This was the largest change among the wage ranges, indicating that fewer Michigan jobs were concentrated on the lowest wage level than in previous years.
Distribution of Michigan Jobs by Median Hourly Wage, 2023–2025
Source: Occupational Employment and Wage Statistics, U.S. Bureau of Labor Statistics
At the same time, the employment share in several higher wage ranges continued to grow. Occupations with median wages of $50 per hour or more accounted for 11.9 percent of Michigan employment in 2025, up from 10.8 percent in 2024 and 9.6 percent in 2023. The share of jobs in the $20 to $25 per hour range also rose to 18.2 percent, while the $25 to $30, $35 to $40, and $40 to $45 ranges recorded smaller increases.
The $15 to $20 wage range remained the largest category in 2025, representing more than one million jobs, or 23.4 percent of statewide employment, although its share declined in the past two years. The $30 to $35 range also decreased slightly, falling to 6.7 percent in 2025. Overall, the distribution continued to move away from the lowest wage range and toward middle and higher-paying occupations in Michigan.
Michigan’s minimum wage increased twice in 2025, first from $10.33 to $10.56 per hour on January 1 and then to $12.48 per hour on February 21. By February 2025, the state’s minimum wage had increased by $2.15 per hour, or 20.8 percent above the 2024 rate. Based on 2025 Occupational Employment and Wage Statistics (OEWS) estimates, approximately 94,160 Michigan jobs, or about 2.1 percent of statewide employment paid less than or equal to $12.48 per hour. Lower-wage occupations in food preparation and serving, sales, personal care, cleaning, and other service-related fields were among those most likely to be affected by the higher wage floor.
Number of Occupations in 2025 Earning At or Below Certain Dollar Thresholds
Source: Occupational Employment and Wage Statistics, U.S. Bureau of Labor Statistics
Michigan’s minimum wage increased to $13.73 per hour on January 1, 2026, and is scheduled to reach $15.00 per hour on January 1, 2027. The 2025 OEWS estimates show that roughly 245,700 jobs, or 5.6 percent of statewide employment, paid less than or equal to $13.73 per hour, while 527,210 jobs, or about 12.0 percent paid less than or equal to $15.00 per hour. These estimates suggest that the future increases could affect a substantially larger share of Michigan employment.
Overall, Michigan’s 2025 wage showed continued nominal growth, a small increase in inflation-adjusted hourly earnings, and a gradual shift toward higher wage levels. The statewide occupational median wage rose 2.0 percent, and median wages increased in every prosperity region. The share of employment in occupations with median wages below $15 per hour declined to 12.0 percent, compared with 14.2 percent in 2024 and 16.8 percent in 2023, while the share in occupations paying $50 per hour or more increased to 11.9 percent.
