Lansing, Michigan, January 14, 2026
Michigan’s economic outlook indicates modest growth for employment and personal income by 2026. Despite rising unemployment and inflation outlooks, regions like the Upper Peninsula show promise for job growth, reflecting a mixed economic landscape influenced by global trade challenges and federal policies.
Michigan’s 2026 Economic Forecast: Modest Growth with Potential for Optimism
Lansing, Michigan – Michigan’s economic outlook for 2026 presents a picture of modest growth, with opportunities for optimism. The state’s economy is projected to experience slight increases in employment and personal income, while challenges such as an aging workforce and global trade uncertainties remain significant factors.
Employment and Unemployment Projections
In 2026, Michigan’s wage and salary employment is expected to grow by 0.4%, following a 0.6% increase in 2025. The unemployment rate is forecasted to rise to 6.0% in 2026, up from 5.6% in 2025, before declining to 5.8% in 2027. These projections indicate a gradual improvement in the state’s labor market over the next few years.
Income and Wage Expectations
Personal income in Michigan is anticipated to increase by 3.7% in 2026, building on a 3.6% rise in 2025. Wages and salaries are projected to advance by 3.3% in 2026, following a 3.0% increase in 2025. These figures suggest a steady, albeit modest, growth in income and wages for Michigan residents.
Inflation and Consumer Prices
The Consumer Price Index (CPI) is expected to rise by 3.5% in 2026, up from 2.9% in 2025. This anticipated increase reflects ongoing inflationary pressures that could impact the cost of living for Michigan residents.
Regional Employment Trends
Employment growth is projected to vary across Michigan’s regions. The Upper Peninsula and Northwest Michigan are expected to lead in job growth rates, with each region projected to experience employment gains of 2.4% over the decade. In contrast, the Detroit Metro region is projected to contract by 0.4% in 2026, highlighting the diverse economic conditions within the state.
Factors Influencing the Economic Outlook
Several factors contribute to Michigan’s economic forecast, including:
- Global Trade and Manufacturing: Michigan’s economy is heavily tied to global trade, particularly in light-duty vehicle manufacturing, furniture, agriculture, and trade hubs with Canada. Challenges such as the transition to electric vehicles and an aging workforce are significant considerations.
- Federal Policies: Changes in U.S. trade policies, including tariffs, have introduced uncertainties affecting Michigan’s economy. The level, scope, and impact of these tariffs remain unknown, adding complexity to the economic landscape.
- Interest Rates: Fluctuations in interest rates pose risks for business investment and consumer spending. Both long-term and short-term interest rates may increase, potentially impacting large consumer purchases and housing markets.
Conclusion
Michigan’s economic forecast for 2026 indicates modest growth, with personal income and employment showing gradual increases. While challenges such as an aging workforce and global trade uncertainties persist, the state’s diverse economic activities and ongoing development projects offer avenues for optimism. Stakeholders should remain attentive to these factors to navigate the evolving economic landscape effectively.
Frequently Asked Questions (FAQ)
What is the projected employment growth for Michigan in 2026?
Michigan’s wage and salary employment is expected to grow by 0.4% in 2026, following a 0.6% increase in 2025.
How is Michigan’s unemployment rate expected to change in 2026?
The unemployment rate is forecasted to rise to 6.0% in 2026, up from 5.6% in 2025, before declining to 5.8% in 2027.
What are the anticipated wage and salary increases in Michigan for 2026?
Wages and salaries are projected to advance by 3.3% in 2026, following a 3.0% increase in 2025.
Which regions in Michigan are expected to experience the highest job growth?
The Upper Peninsula and Northwest Michigan are projected to lead in job growth rates, with each region expected to experience employment gains of 2.4% over the decade.
What factors are influencing Michigan’s economic outlook?
Factors include global trade and manufacturing, federal policies such as tariffs, and interest rate fluctuations.
Key Features of Michigan’s 2026 Economic Forecast
| Feature | Details |
|---|---|
| Employment Growth | 0.4% increase in 2026, following a 0.6% increase in 2025. |
| Unemployment Rate | Expected to rise to 6.0% in 2026, up from 5.6% in 2025, then decline to 5.8% in 2027. |
| Wage and Salary Increases | Projected to advance by 3.3% in 2026, following a 3.0% increase in 2025. |
| Regional Job Growth | Upper Peninsula and Northwest Michigan projected to lead with 2.4% employment gains over the decade. |
| Inflation Rate | Consumer Price Index expected to rise by 3.5% in 2026, up from 2.9% in 2025. |
Deeper Dive: News & Info About This Topic
HERE Resources
Economic Slowdown Continues in Grand Rapids
Shake Shack to Open First Location in West Michigan
Trump’s New Military Strategy Targets Drug Cartels in Mexico
The Coffee Beanery Opens New Location in Genesee County
Urgent Measures Needed to Preserve Michigan’s $348 Billion Auto Industry
Warner Norcross + Judd Promotes Nine Attorneys in Detroit
Michigan Businesses Navigate a Weaker Dollar
Federal Reserve Cuts Interest Rates Amid Internal Divisions
Michigan Legislature Concludes with Historical Low in New Laws
Mortgage Rate Declines to 6.18% – What It Means for Detroit
Author: STAFF HERE DETROITMI WRITER
DETROIT STAFF WRITER The DETROIT STAFF WRITER represents the experienced team at HEREDetroitMI.com, your go-to source for actionable local news and information in Detroit, Wayne County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Movement Electronic Music Festival, Detroit Grand Prix, and America's Thanksgiving Parade. Our coverage extends to key organizations like the Detroit Regional Chamber and Focus HOPE, plus leading businesses in automotive and healthcare that power the local economy such as General Motors, Ford Motor Company, and Henry Ford Health. As part of the broader HERE network, including HEREGrandRapids.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
