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Wages

2025 Michigan Annual Economic Analysis Report
Wages

Yen Archer, Economic Specialist

Key Takeaways

  • Michigan’s median hourly wage increased 2.0 percent, from $23.22 in 2024 to $23.69 in 2025. Average hourly earnings for private-sector workers rose 3.0 percent and slightly outpaced inflation.
  • Wage gains occurred across all 10 prosperity regions. The share of jobs in occupations with median wages below $15 per hour declined to 12.0 percent in 2025, while the share in occupations paying $50 per hour or more increased to 11.9 percent.
  • Michigan’s minimum wage increased to $12.48 in February 2025 and $13.73 in January 2026. The next scheduled increase, to $15.00 in January 2027, will impact approximately 527,000 jobs in the 2025 occupational wage distribution.

Wage Changes in Michigan

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 Wage Growth Continued to Outpace Inflation in 2025

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.

 

Growth of average hourly wages slightly outpaced inflation in 2024 and 2025, after three years of falling behind.

Inflation Rates Compared to Average Hourly Wage Growth in Michigan, 2016–2025

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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.

Wage Levels and Growth Varied Across Michigan's Prosperity Regions

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).

Michigan Prosperity Regions Ranked by 2025 Median Hourly Wage

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 Upward in 2025

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.

Occupational wages in Michigan shifted toward higher wage ranges between 2023 and 2025.

Distribution of Michigan Jobs by Median Hourly Wage, 2023–2025

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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.

Minimum Wage Developments and Lower-Wage Employment

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.

In 2025, about 94,000 jobs paid minimum wage or less. Additionally, there were roughly 246,000 occupations that paid less than the upcoming 2026 minimum wage of $13.73 and 527,000 jobs that paid less than the 2027 minimum wage ($15).

Number of Occupations in 2025 Earning At or Below Certain Dollar Thresholds 

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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.

Michigan Wages Continued to Shift Upward in 2025

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.

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