Michigan is facing rising layoffs and economic uncertainty in 2025.
The state’s unemployment rate hit 5.5% in April. That’s the second-highest in the nation, behind Nevada. Layoffs are accelerating. In January, job discharges rose 16.7% over the same time last year. June brought layoff plans from 138 employers across various sectors.
The automotive industry is at the center of this disruption. Tariffs on vehicles, steel, and aluminum are having a major impact. The University of Michigan projects auto-related job losses could total 13,000 over the next few years.
Key automotive layoffs include:
Stellantis implemented temporary layoffs at its Warren and Sterling Heights plants. Hundreds of workers are affected.
General Motors cut 200 jobs at Factory Zero in Detroit and Hamtramck.
Lacroix Electronics will close its Grand Rapids plant, laying off 115 workers by year-end.
Akasol, an EV battery maker, exited Michigan in April. That cut 188 jobs.
Michigan Spring & Stamping Company in Muskegon is shutting down. It will eliminate 116 positions.
US Farathane in Troy is closing, laying off 180 people.
Lippert Components is closing two RV supply facilities in Chesaning. That means 159 permanent layoffs.
These moves reflect market changes, including a shift to electric vehicles and tariff-related cost pressures.
The healthcare sector is also cutting back. Blue Cross Blue Shield of Michigan announced over 600 position reductions in June. That includes 220 direct layoffs and 400 vacant roles that won’t be filled. The company aims to cut $600 million over three years due to rising healthcare costs.
Retail and logistics are under pressure as well:
UPS is reducing operations nationally. Michigan will be affected, though final numbers are pending.
Macy’s is closing stores in Sterling Heights and Troy, cutting nearly 200 jobs.
Sherwood Food Distributors will close in Detroit. This means 255 permanent layoffs.
Pratt Industries will lay off 53 workers in Livonia by August.
Conagra Brands is shutting down its Fennville plant. That will cost 75 jobs.
Other major cuts include:
Flagstar Bank in Troy will cut nearly 500 jobs by October.
Evergreen Packaging in Kalamazoo is closing, eliminating 153 positions.
Despite these losses, some sectors are still hiring. Education, health services, and hospitality are expected to add jobs. The state forecasts 25,000 new positions in 2025. However, only 300 are expected in the final three quarters of the year.
Cyclical sectors, like manufacturing, will lose ground. Transportation equipment manufacturing alone could lose 7,300 jobs in 2025.
The unemployment rate is expected to climb to 6% by early 2026. After that, it may slowly improve. Personal income is rising, but inflation is slowing down gains in real disposable income.
In short, Michigan’s economy is facing serious headwinds. Layoffs are rising in auto, healthcare, and retail. Tariffs and cost pressures are driving changes. Modest growth in stable industries may help offset some damage, but challenges remain. The road ahead looks tough, with a slow recovery expected.