As Michigan approaches election day, it is important to take stock of how the state economy is performing. The answer: not great. While Michigan produces more and residents are earning more than they did a few years ago, the state continues to rank among the lowest-performing states. And the state’s job losses since 2023 ought to worry voters as well.

Per-capita personal income in Michigan reached only $67,245 in 2025, the 11th lowest in the country. This is up 9.9% since 2019, when adjusted for inflation. The state’s income growth was in the middle of the pack, at 26th among the states. It is difficult to catch up to national averages with subpar growth.

Michigan had 191,000 fewer residents employed in September 2026 than it did in September 2019, a 4.0% decrease that is the fourth-steepest in the country. Only 15 other states experienced employment losses over the period; the rest added jobs.

The state population grew by 49,758 people from 2019 to 2025, a 0.5% gain. That’s the 10th-lowest among the states. Michigan has not been the place to be.

The state unemployment rate is 5.0%, the fifth-highest in the country. It has been rising since May 2023, and only five states have added more to their unemployment rate than Michigan over this period. Jobless rates around the country are low at the moment; yet Michigan’s rate is comparatively high, and it is trending in the wrong direction.

Economic output is up from 2019 to 2025, but Michigan again lags the nation. The state’s 36% nominal Gross Domestic Product ranks 12th-worst and trails the 43% national average. Growth is good — but it’s small consolation when the growth lags the typical state.

The state’s stagnating performance ought to matter to policymakers. The past eight years have seen increased spending on state and local government services, and billions for economic development programs, but little has been done to improve basic economic policies. The state could benefit from cheaper and more reliable energy, lower and fairer taxes, and a government willing to get out of the way of people building more homes. (This should sound familiar to Mackinac Center readers.)

The right approach is to follow basic economics, not to provide still more subsidies to select corporations. The major deals of the past eight years promised $2.7 billion in subsidies to create 20,565 jobs. So far, $1.8 billion has changed hands, but only 602 jobs have been created. Every deal that hasn’t been cancelled has been scaled back.

Michigan’s economic record demonstrates that these strategies have failed to move the state forward, while other states are leapfrogging us in key areas of economic success. Michigan’s next governor and legislature should focus on getting the basic economic policy right, instead.

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