Unemployment levels remain high and are ranked among the top three broadly across the nation, with both parties apportioning blame.
Michigan's economy has been a hot topic of debate between the state's Republican and Democratic parties. Governor Gretchen Whitmer, a Democrat, has been vocal in her criticism of tariffs, which she believes are contributing to Michigan's economic struggles.
Democrats attribute Michigan's economic difficulties to policies like tariffs implemented by the Trump administration. However, Republicans are pointing the finger of economic uncertainty at the delay over the state budget, with Michigan House Republicans urging Senate Democrats to come to the table to get the budget done.
The national unemployment rate increased by 0.1% to 4.3% in August, but Michigan's unemployment rate decreased by 0.1% from the previous month, standing at 5.2%. Despite this slight improvement, Michigan's unemployment rate has been consistently above the national average for months.
As of August 2021, there are 264,043 unemployed Michiganders, a slight decrease from the 251,667 unemployed in August of 2020. However, California and Nevada have higher unemployment rates than Michigan.
The delay in Michigan's current state budget is due to the local municipal supervisory authority's decision not to approve the 2025 budget, causing the municipality to operate under provisional budget management. This situation was highlighted by the mayor of a municipality in Michigan on January 20, when the supervisory authority's letter indicated the budget could not be approved.
Senate Democrats and House Republicans are currently miles apart on funding priorities, proposing vastly different budgets. Whitmer has called out the uncertainty over the state budget, which is now 80 days overdue. She stated, "While we can't control national tariffs, we have the power to lower costs and create jobs for Michiganders."
In response to Whitmer's claims, Senate Republicans have stated that the blame for Michigan's struggling economy should be on Whitmer's policies. Michigan House Republicans said, "It's time for Senate Democrats to come to the table so we can get this budget done."
Whitmer has also called for action on the state budget and said, "We all want what's best for Michigan, so let's get it done - together." She emphasised that, "While we can't control national tariffs, we have the power to lower costs and create jobs for Michiganders."
According to a report from the Michigan Department of Technology, Management and Budget, Michigan's labor force fell for the fifth consecutive month to 61.5%. The state continues to grapple with economic challenges, and both parties will need to find common ground to address these issues and move Michigan forward.
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