Feb 03 2025 3 mins 2
Michigan is entering 2025 with significant changes across various sectors. The state's minimum wage is set to increase from $10.33 to $12.50 an hour in February, following a Michigan Supreme Court ruling that deemed the "adopt and amend" tactic used by Republican lawmakers in 2018 unconstitutional[1].
In the political arena, the Michigan Legislature has kicked off the new term with new leadership and policy priorities. Democrats maintain control of the state Senate, while Republicans have gained a majority in the House of Representatives. Senate Majority Leader Winnie Brinks emphasized the importance of collaboration between the chambers, while also stating that Democrats will not compromise on their core values[2].
On the economic front, Michigan's economy is forecast to grow moderately in 2025, with real GDP growth expected to stabilize and pick up over the next 12 months. The unemployment rate, which rose in the fall of 2024, is anticipated to come back down in the second half of 2025, averaging 4.1% for the year[3].
In community news, residential construction is set to gain further steam in 2025, with Michigan continuing to have among the most affordable housing in the nation. This, combined with rising homebuilder confidence, should deliver another robust year for single-family construction[3].
Weather-wise, the start of 2025 is expected to be mild and active, with above-normal precipitation from January through March. Temperatures are also expected to be slightly above normal during this period[4].
Looking Ahead:
- The implementation of the new minimum wage and its impact on businesses will be closely watched.
- The Michigan Legislature's new term will see efforts to find common ground between Democrats and Republicans, particularly on policy items such as lowering prescription drug costs and reducing maternal death rates.
- Economic indicators, including payroll growth and housing market trends, will continue to be monitored for signs of stability and growth.
In the political arena, the Michigan Legislature has kicked off the new term with new leadership and policy priorities. Democrats maintain control of the state Senate, while Republicans have gained a majority in the House of Representatives. Senate Majority Leader Winnie Brinks emphasized the importance of collaboration between the chambers, while also stating that Democrats will not compromise on their core values[2].
On the economic front, Michigan's economy is forecast to grow moderately in 2025, with real GDP growth expected to stabilize and pick up over the next 12 months. The unemployment rate, which rose in the fall of 2024, is anticipated to come back down in the second half of 2025, averaging 4.1% for the year[3].
In community news, residential construction is set to gain further steam in 2025, with Michigan continuing to have among the most affordable housing in the nation. This, combined with rising homebuilder confidence, should deliver another robust year for single-family construction[3].
Weather-wise, the start of 2025 is expected to be mild and active, with above-normal precipitation from January through March. Temperatures are also expected to be slightly above normal during this period[4].
Looking Ahead:
- The implementation of the new minimum wage and its impact on businesses will be closely watched.
- The Michigan Legislature's new term will see efforts to find common ground between Democrats and Republicans, particularly on policy items such as lowering prescription drug costs and reducing maternal death rates.
- Economic indicators, including payroll growth and housing market trends, will continue to be monitored for signs of stability and growth.
