The outlook for the Michigan economy looks encouraging through the end of 2025, according to a report by economists at the University of Michigan.
The Research Seminar in Quantitative Economics (RSQE) released the Michigan Economic Outlook for 2024-25. It notes that Michigan’s economy is not keeping pace with the national recovery, but Michigan is expected to do better over the next couple of years.
“We hope to see the payroll jobs rise above their pre-pandemic level in the first half of this year and continue growing over the next two years,” said Michael McWilliams, one of the economists who wrote the report.
The economists at RSQE report that employment growth slowed in Michigan in the second half of last year.
“That was partly due to the auto strikes and more recently the announced layoffs. And so, there are some short term challenges. But, there’s also been good news, too, in the state,”
The good news includes that fact that the number of people with a job is still increasing. Also, inflation is slowing. The Federal Reserve Board could begin lowering interest rates.
“We should see mortgage rates come down a little bit. We should see vehicle financing rates come down. And, in general, that would help growth continue in the economy and help Michigan avoid a downturn over the next two years,” McWilliams said.
The report projects that Michigan will add 37,900 jobs this year. It explains the weak growth at the end of 2023 could hold down growth in 2024. But if the economy remains strong, Michigan might add another 57,500 jobs by the end of 2025.
That would approach employment levels that Michigan has not seen in a quarter century.
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