According to a report from the University of Michigan’s Research Seminar in Quantitative Economics, Michigan’s economy is expected to experience steady job growth and low unemployment in the next two years. The team, which has been operating at the university since 1952, predicts that the national economy will also remain healthy in the coming years, despite a potential slowdown in the near term.
Despite high interest rates, both the U.S. and Michigan economies have fared better than expected. The Michigan forecast expects that the state will add around 76,000 jobs in 2024-25, with an unemployment rate predicted to remain just below 4%. By the end of 2025, Michigan is projected to have 2.4% more jobs than before the COVID-19 pandemic. However, there are concerns about consumer behavior on a national level, such as rising credit card and auto loan delinquencies, slowing consumer credit growth and stagnant vehicle sales.
On a positive note, the state’s economic forecast is not entirely negative. UM researchers expect that real disposable income in Michigan will be modest but with a slight decline in 2024 followed by a small rise in 2025. Despite some challenges and uncertainties in their economic outlook for both Michigan and the U.S., experts suggest careful monitoring of consumption patterns and financial indicators will be crucial in determining future economic prospects
