Recent layoffs across Michigan’s automotive industry contributed to the state’s unemployment rate rising to 4.8% in November, according to data released Thursday by the Michigan Department of Technology, Management and Budget.
November’s jobless rate is up from 4.1% the same month last year and is higher than October’s jobless rate of 4.6%. The U.S. unemployment rate rose to 4.2% last month, compared with 4.1% in October.
The increase from October was primarily driven by an increase of 9,000 unemployed workers in November, the state said.
General Motors’ headquarters at the Renaissance Center in Detroit.
Monthly job losses were led by a loss of 2,000 jobs in the trade, transportation and utilities sector, which includes the automotive industry. General Motors Co. cut a total of about 1,000 salaried and hourly employees — with the majority of cuts coming from GM’s Global Technical Center in Warren — in November, the second round of job cuts at the automaker within a matter of months. Stellantis, meanwhile, said last month that 400 workers at a Detroit logistics facility would indefinitely lose their jobs, which followed as many as 2,450 unionized job cuts at its Warren Truck facility in August.
As a result, Michigan’s unemployment rate is the highest it has been since November 2021, when the state’s economy was still rebounding from the pandemic. In the months leading up to the pandemic, the state’s jobless rate was at about 3.7%.
After dropping near pre-pandemic levels, Michigan’s unemployment rate has been rising since the spring.
The outlook for Michigan’s economy for 2025 — and for the automotive industry — is uncertain, especially with former President Donald Trump returning to the White House. He has floated significant policy changes such as additional import tariffs on Chinese goods, ending a tax credit for electric vehicle purchases and personal and corporate tax cuts.
Michigan’s economic outlook “depends critically on uncertain policy decisions and the subsequent market responses,” according to recently released University of Michigan annual economic forecasts.
The U-M forecast expects Michigan’s unemployment rate to edge down to 4.3% by the end of 2026 as job growth picks up. The state’s labor force is expected to grow at a slower rate due to changes in immigration policy, the forecast said, and manufacturing jobs could “tread water” during the next two years.
More on U-M’s projections: U-M forecasts see bigger deficits under Trump, but no economic catastrophes
More on GM layoffs: How a GM layoff email sent to employees in Warren triggered a storm on TikTok
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There were some bright spots in Michigan’s economy last month. Employment in the state’s leisure and hospitality sector rose by 3,000 since October. Since November 2023, jobs in government have increased by 19,000, construction jobs have risen by 15,000 and leisure and hospitality has increased by 10,000.
Detroit Free Press columnist Susan Tompor contributed to this report. Reporters J.C. Reindl, Jamie LaReau and Eric Lawrence contributed to this story with prior reporting.
Contact Adrienne Roberts: amroberts@freepress.com
This article originally appeared on Detroit Free Press: Michigan’s unemployment rate rises in November after auto layoffs