2023 Michigan Annual Economic Analysis Report

Executive Summary 

Labor Market and Wages

• Annual average data for 2023 showed that Michigan had its highest payroll job level and lowest unemployment rate in over 20 years.
• Both total employment and total workforce levels reached 15-year highs during 2023, while the number of unemployed reached a low last seen in 2000.
• Current Population Survey metrics indicated persons on temporary layoff and permanent job losers fell since 2022, while the percentage of job leavers advanced over the year.
• The state’s average hour wage rose above $32 for the private sector in 2024. Despite this increase, real earnings have remained stagnant compared to 2019.
• The Michigan job market is experiencing a shift towards mid-range and higher-paying jobs, with a notable decline in low-wage jobs.
• The size of Michigan’s middle class ranks near the middle (28th in 2022) among states.

Differences by Demographic Group

• Unemployment rates for males and females ages 16 and older receded from 2020 to 2023, with the male jobless rate reaching a five-year low of 3.8 percent during 2023, and the female rate matching its 2019 rate of 3.9 percent.
• Jobless rates for white and Black workforce participants fell to five-year lows during 2023.The percentage of individuals available to work now but identified as discouraged workers fell to a five-year low during 2023.
• Earnings gaps with white non-Hispanic workers narrowed across race and ethnicities in Michigan through 2022.
• Michigan’s gender earnings gap has decreased, though it is still larger than the gap nationally.

Employment and Population Outlook

• Job openings and online job advertisements are down over the year, and labor turnover is the lowest in over a decade.
• Overall, employment growth is expected to be modest, increasing by 25,010, or 0.6 percent, over the 10-year period.
• Private education and health services is projected to add 50,000 jobs, the largest major industry increase.
• Goods-producing industries are projected to decline by 17,000 jobs from 2022-2032, led by an 18,000 (-3.0 percent) drop in Manufacturing jobs over the decade.
• Without net positive migration, Michigan’s projected population will be significantly lower by 2050. This includes the 25-to-54-year-old population who are critical to the state’s labor market.