Jan. 24, 2025 | This Week in Government: Tipped Wage, Earned Sick Time Clear House With Bipartisan Support

Bills preserving a lower tipped minimum wage and making changes to the Earned Sick Time Act sailed through the House on Thursday with several Democrats joining Republicans in support.

“There was bipartisan support, so that encouraging,” said Rep. Bill Schuette (R-Midland), who chaired the select committee on the bills (editor’s note: this story has been changed to correct Schuette’s party affiliation). “Now the ball is in Leader Brinks’ and the governor’s court, and I’d hope they would follow the bipartisan example that we set in the House.”

HB 4001, which keeps the tipped minimum wage at 38% of the minimum wage, cleared the House in a 63-41 vote.

Rep. Peter Herzberg (D-Westland), Rep. Tullio Liberati (D-Allen Park), Rep. Carol Glanville (D-Walker), Rep. Will Snyder (D-Muskegon), Rep. Karen Whitsett (D-Detroit), and Rep. Angela Witwer (D-Delta Township) voted with the Republican majority. All the Democrats who voted in favor of the legislation served on the select committee.

The only Democrat to serve on the committee who voted against HB 4001 was Rep. Matt Longjohn (D-Portage), though he voted to report it out of committee. He also voted against HB 4002 on the floor, though he voted to report it out of committee.

Rep. Brad Paquette (R-Niles) voted against the legislation.

“Everybody is their own shade of red,” Schuette said. “I think there are some people who had concerns about raising the minimum wage at all.”

Schuette said that the bill demonstrated his caucus was willing to introduce legislation with compromise.

“There has been a version of legislation that was introduced that would just put everything back to how they were,” he said. “We’re introducing commonsense legislative fixes the problem that protects small business and our workers.”

HB 4002, which makes scales back the paid sick leave law set to take effect Feb. 21, passed 67-38.

Rep. Tyrone Carter (D-Detroit), who also served on the committee, voted in favor of the legislation, along with Rep. Noah Arbit (D-West Bloomfield), Glanville, Herzberg, Liberati, Rep. Amos O’Neal (D-Saginaw), Snyder, Whitsett, and Witwer.

Schuette said House Republicans have not discussed putting an appropriation on the bills to make them referendum proof.

There have been discussions with members of the Senate on the legislation, though, Schuette said. He expressed hope that the Senate would move quickly to pass the legislation.

Senate Majority Leader Winnie Brinks (D-Grand Rapids) made it clear she had no intention of just passing the House’s version of the legislation. The Senate has different concepts on the issue in SB 8 and SB 15.

“I believe we can achieve a balance that ensures that workers have strong rights, employers are able to run their businesses, and that the spirit of the initiative petition – which received hundreds of thousands of signatures – is upheld,” she said. “The bills we have in the Senate are much better for workers, and we are continuing to focus on those. But I want to be clear: I will not rubber stamp a plan that takes earned sick leave away from a million Michiganders.”

The House plan exempts all employers with fewer than 50 employees from the requirement to provide one hour of paid sick leave for every 30 hours worked with a minimum of 72 hours per year. The Senate plan is a smaller change to the law set to take effect. That law says employers with less than 10 employees only have to provide a minimum of 40 hours in paid leave plus 32 hours of unpaid leave.

Under the Senate Democratic plan, the threshold would rise to those employers with fewer than 25 employees having the 40 hours paid/32 hours unpaid minimums.

House Minority Leader Ranjeev Puri (D-Canton) said he was looking forward to more robust discussions with the Senate legislation.

Although there was bipartisan support on both bills, Democrats put forward several floor amendments that were rejected. Democrats proposed five amendments for HB 4001 and eight amendments for HB 4002.

“We’ve seen an abundance of amendments that came out for ways that can improve upon the disastrous bills that were offered today, so … if we could have meaningful discussion, we’d love to engage in that,” Puri said.

Puri said that he could not account for why House Democrats didn’t take up the legislation last term when they were in the majority and could have facilitated those discussions themselves.

“I think the sooner we would have addressed this, the better off we would have been, but we obviously can’t change what happened in the past,” he said.

He also said he didn’t think there was a need to pass legislation before Feb. 21, when the current laws go into effect.

“We should be working toward a solution that is not fitting a political narrative,” he said. “This law has been put into seven states around the country. There’s not been instances of widespread layoffs in any of these states. There’s not been thousands of displaced workers in these states because these laws have been implemented.”

Schuette, on the other hand, said the House bills struck a better balance for workers and employers.

“I’m an optimist,” he said. “We’re going to keep full pressure all the way down.”

Several groups reacted to the House passing the legislation, with those who opposed the legislation coming down hard against Democrats who voted in support of it.

“Today, in a bipartisan fashion, the Michigan House of Representatives caved to corporate lobbyists and betrayed Michigan workers by voting to gut the state’s minimum wage and paid sick leave laws,” Sam Inglot, executive director for Progress Michigan, said in a statement. “The majority of Michganders support the increase in the state’s minimum wage laws, the elimination of the subminimum wage, and the implementation of paid sick leave for workers across the state. HB 4001 and HB 4002 strips workers of a well-deserved and overdue raise and strips too many workers of paid sick leave they need to take care of themselves and their loved ones. We urge the Michigan Senate to reject changes to the laws and allow them take effect as intended on Feb. 21.”

David Worthams, director of employment policy for the Michigan Manufacturers Association, said passage of the bill reining in the sick time law is a crucial step toward addressing the “onerous and nonsensical challenges” the law poses. Besides the requirement to provide one hour of paid time off for every 30 hours worked, employer groups have decried the law’s apparent prohibition on employers providing a block of sick time to workers at the start of the year, requirements for employers to log hours worked and sick time accrued, prohibition on employers requiring advance notice of employees using sick time, and more.

“The changes proposed in HB 4002 are necessary to ensure that manufacturers can continue to operate effectively while maintaining fair, competitive, and sustainable paid time off policies,” he said in a statement. “Whenever there is legislation that passes in such a bipartisan nature, it shows that there is clearly an issue that must be addressed quickly because it has such an impact on Michiganders across the state.”

The Democratic-controlled Senate set the table Wednesday for a potential legal fight with the Republican-controlled House, adopting a resolution authorizing the majority leader to pursue potential legal action compelling the House to present its final nine bills of the recently completed legislative session.

Members in a voice vote along party lines adopted SR 3, which authorizes Senate Majority Leader Winnie Brinks (D-Grand Rapids) to sue on behalf of the Senate to “compel the House of Representatives to fulfill its constitutional duty to present to the governor the nine remaining bills passed by both houses the 102nd Legislature.”

“Michigan residents deserve elected officials who are committed to fulfilling their constitutional duties,” Brinks said prior to the vote. “I hope to make it abundantly clear that we will not tolerate illegal partisan games that evade our state Constitution. While the speaker has indicated that the House will continue to undermine our Constitution and unilaterally delay the presentation of this past legislation to the governor, I am preparing to take legal action if necessary to ensure that the Constitution is followed.”

Wednesday’s move comes after House Speaker Matt Hall (R-Richland Township) earlier this month announced the remaining nine bills would not be presented pending a legal review of whether the House has the authority to do so and when the House must send them (See Gongwer Michigan Report, Jan 9, 2025).

It also signals a beginning of what might be a contentious two years in the Legislature with the return to divided government.

Hall’s move left several key remaining controversial bills from last session, most significantly HB 6058 of 2024, which requires public employers to pay a larger share of the health insurance premium for public employees.

Language in SR 3 says the House failed in its constitutional duty to present the bills to the governor and the Constitution “does not permit the House’s unilateral decision to delay presenting those bills to the governor.”

“We certainly hope that Speaker Hall makes the right choice and sends those bills over to the governor,” Brinks told reporters, adding the timeline for taking legal action will depend on Hall’s response. “Ideally, he would take this opportunity to do the right thing and send those bills to the governor without us having to pursue further legal action. … I’m not giving him a deadline, but at some point, there will be decisions made.”

Attorneys for the House earlier this month began reviewing the nine bills, as well as the requirements for presenting bills passed by both chambers to the governor after the start of a new term.

Hall ripped the Senate’s move when asked about it during a Wednesday afternoon press conference, questioning whether the Senate is even in session due to what he called a lack of news coming out of the other chamber.

By comparison, he said the House has already begun committee hearings on important policies, such as its version of legislation to amend the state’s minimum wage and paid sick time laws set to go into effect next month.

“So, apparently, they are in session, because they came in and said: ‘we’re going to sue,’” Hall said. “We’re just trying to follow the Constitution and the law.”

He said the House Republicans general counsel, former Rep. Andrew Fink, is conducting a thorough review of the legislation and the constitutional issues the caucus has raised.

“Whatever decision we come to is going to be by the book, under the Constitution and the law,” Hall said. “This almost has never happened before, where the prior speaker doesn’t file his bills … before he leaves, and so there’s just a lot of legal and constitutional questions, and the more we look into it, the more we find. So, we’re going to do a thorough legal review, but the Senate has no role in telling the House what to do.”

Article IV, Section 33 of the Michigan Constitution says, “Every bill passed by the legislature shall be presented to the governor before it becomes law, and the governor shall have 14 days measured in hours and minutes from the time of presentation in which to consider it.”

However, there is nothing in the Constitution, statute or the Joint Rules of the Legislature stating when a legislative house must present a bill. For unknown reasons, House Speaker Joe Tate (D-Detroit) and then-House Clerk Rich Brown allowed the 2023-24 House Democratic majority to end at noon Jan. 1 without completing the enrollment and presentation of the bills to the governor.

The question now is how “shall” should be interpreted legally in the current circumstances.

Senate Republicans were also unimpressed with the move by Brinks.

“We come back. We’re in a divided government. Republicans have some power, Democrats have some power; a good opportunity to work together on solving the problems of people in Michigan, and we get this dropped on us,” Sen. Jonathan Lindsey (R-Coldwater) said prior to the voice vote. “It sounds like it’s asking to empower, to take legal action against the new speaker of the House because the Democrats in the last session couldn’t get their job done.”

Lindsey said the Democrats could not do something as simple as carry a slate of bills over to the governor before the clock ran out on the last session, and now they are seeking to have the Republicans solve a problem of their own creation.

“This is ridiculous that this body is taking up this resolution and asking for this action,” Lindsey said. “I recommend that the Democrats … instead focus their time on figuring out how to effectively legislate and maybe think about the lessons that should have been learned from a session where Democrats literally failed the people of Michigan, couldn’t even conduct a basic duty of taking legislation that had been passed and delivering it to the governor.”

Senate Minority Leader Aric Nesbitt (R-Porter Township) in a statement called adoption of SR 3 a political stunt.

“It is unfortunate for the people of Michigan that Democrats continue to be divisively partisan instead of working across the aisle with Republicans who are ready to focus on real solutions to the problems facing families across our state,” Nesbitt said. “Let’s be done with this nonsense, move beyond the failures of the previous House leadership, and serve the people we have promised to serve.”

Brinks was asked if she would consider it her responsibility to present all Senate bills to the governor before leaving office, to which she said yes.

“Yes, all bills that have been duly passed, I think we would follow that procedure,” Brinks said. “I don’t know what occurred over in the House, either the previous speaker or the current speaker. Either way, I believe there’s an obligation if legislation has been passed properly by both bodies, it should be delivered to the governor’s desk.”

Brinks said from a legal standpoint, the Senate is an aggrieved party in potential legal action. She added that includes those that could be affected by the legislation, such as the state employees, as well as corrections officers, she said.

The other remaining legislation still being held in the House includes three bills allowing Detroit history museums to seek a property tax millage from Wayne County voters (HB 4177 of 2023, HB 5817 of 2024 and HB 5818 of 2024); bills that would put corrections officers into the State Police pension system (HB 4665 of 2023, HB 4666 of 2023 and HB 4667 of 2023) and exempting public assistance, disability, and worker’s compensation from garnishment to repay debts (HB 4900 of 2024, and HB 4901 of 2024).

Each of the bills being held from presentation passed both chambers along party lines and near party-line votes.

The Monday inauguration for the second term of President Donald Trump drew a joyous response from Michigan Republicans who praised his return to office and hailed a flurry of executive orders he signed in the opening hours of his administration.

From Democrats there was pushback against some of Trump’s cabinet nominees and over some of his initial executive orders. Some, including Gov. Gretchen Whitmer, seemed to resign themselves to the new reality with calls for bipartisanship.

Republicans from Michigan’s congressional delegation were thrilled with Monday’s inauguration in various statements.

“I am eager to work with President Trump and my colleagues on both sides of the aisle to implement economic policies that return good-paying jobs to American workers, lower inflation, cut taxes, and revive our manufacturing sector – especially right here in Michigan – where we will ensure we make more cars and goods that say ‘Made in America,’” U.S. Rep. Tom Barrett (R-Charlotte) said. “Together, we will build an America that stronger, safer, and more united.”

U.S. Rep. John Moolenaar (R-Caledonia) echoed Barrett in a statement.

“President Trump’s historic second inauguration is good news for Michigan,” Moolenaar said. “He has always been a fighter for the people of Michigan and I look forward to working with him to extend tax relief for Michigan families, defend Michigan manufacturing, support small businesses, and help our veterans and farmers.”

Whitmer in a statement called for bipartisanship in a statement, congratulating Trump on his assuming office.

“Here in Michigan, we are focused on creating good-paying, local jobs, fixing the damn roads, fighting for our advanced manufacturing industries including autos, defense, maritime, and aerospace, and working with our partners in Canada to keep costs low for working families and small businesses,” Whitmer said. “Together, with Republicans and Democrats in Lansing and the new administration in D.C., I know we can lower costs, bring more manufacturing back to Michigan, boost research and innovation, and cut red tape.”

Michigan Democratic Party Chair Lavora Barnes in a statement took a swipe at Trump’s agenda.

“Last time Trump made a lot of big promises to Michigan he failed us at every turn, shipped jobs overseas, and gave the ultra-wealthy a tax cut while costs went up for working Michiganders,” Barnes said. “Every time Trump lies and fails our great state, we will be there to hold him accountable and remind Michiganders of how Democrats have and will continue to deliver for them in the face of his extreme and expensive agenda.”

What effect Trump’s initial burst of executive orders might have on Michigan was not immediately clear Tuesday, including an order targeting electric vehicles, which could significantly affect the state’s auto industry.

In targeting electric vehicles, Trump halted the spending of federal monies designated toward electric charging stations across the country, a possible end of a waiver for states to adopt zero emission vehicle rules and a possible ending of a $7,500 tax credit for certain EV purchases.

The move is part of Trump’s campaign pledge to end what he and Republicans have called an EV mandate.

Trump may also revoke the disbursement of further unspent monies from the Inflation Reduction Act, which could result in some of the billions granted to Michigan auto companies and EV battery projects to be clawed back.

The EV order drew an immediate rebuke from Barnes in a statement.

“Within just hours of being president again, Trump is once again hurting Michigan auto workers with his electric vehicle Executive Order,” Barnes said. “As auto workers already know, Donald Trump is one of the biggest threats to the auto manufacturing economy here in Michigan. With factories already idling because of Trump’s presidency, there is no telling how much more damage he will do to Michigan’s auto jobs.”

A message left Tuesday with a spokesperson for the Michigan Economic Development Corporation was not immediately returned.

Another executive order issued by Trump on Monday seeks to end birthright citizenship, a move that was quickly countered by Attorney General Dana Nessel and Democratic attorneys general with a lawsuit filed in federal court (see separate story).

House Speaker Matt Hall (R-Richland Township) cheered the quick action by Trump in a Monday statement, saying Michigan House Republicans stand ready to partner with the new administration.

“Today is a monumental day in American history and the beginning of a much stronger and successful time for our nation,” Hall said. “The American people have spoken asking for real change, and now President Trump is taking bold, decisive action to immediately deliver on his promises to secure our borders, assert American energy dominance, and bolster Michigan’s auto industry.”

Rep. Angela Rigas (R-Alto) in a statement said she was also pleased with the first day’s work from Trump.

“President Trump’s actions yesterday reaffirm his unwavering dedication to restoring justice, protecting women’s rights, and safeguarding our sovereignty,” Rigas said. “He is proving once again why millions of Americans stand with him in the fight to preserve our country’s foundational principles.”

Trump also pardoned nearly 1,500 defendants, including several Michigan residents, who participated in the Jan. 6, 2021, attack on the U.S. Capitol.

Among them appears to be 2022 Republican gubernatorial primary candidate Ryan Kelley, who in 2023 was sentenced to 60 days in prison and was levied a $5,000 fine. He pleaded guilty to one count of entering and remaining the U.S. Capitol during the attempted insurrection on Jan. 6, 2021.

According to the U.S. Department of Justice’s Office of the Pardon Attorney, a presidential pardon does not remove a pardoned offense from an individual’s criminal record. A pardon helps in facilitating the removal of legal disabilities stemming from a conviction.

U.S. Sen. Elissa Slotkin (D-Holly), in a statement, condemned the pardons, referenced her having to hole up in her office while police officers battled the crowd in 2021.

“In issuing these pardons, the president signaled that those who commit violence on his behalf – even assaulting police officers – can get away with their crimes,” Slotkin said. “It also signals that political violence that supports President Trump will be treated as acceptable and potentially pardonable going forward. This creates real, long-term damage to our legal system, and puts the rule of law and our democracy at great risk.”

Secretary of State Jocelyn Benson also rebuked Trump for the pardons in a post to X, formerly Twitter, calling the pardons a “stunningly callous disregard for law and order.”

“No matter our politics, we should all be able to agree that the tragedy at our U.S. Capitol on Jan. 6, 2021, is to be condemned and those who broke the law should be held accountable. Anything less is an affront to democracy and everything we are as Americans,” Benson wrote.

Also Monday, Michigan’s Democratic U.S. senators announced their support for some of Trump’s nominees for key posts in his administration.

Both U.S. Sen. Gary Peters (D-Bloomfield Township) and Slotkin gave their support to forward the nomination of South Dakota Governor Kristi Noem to the U.S. Senate floor as secretary of the Department of Homeland Security.

U.S. Sen. Marco Rubio (R-Florida) separately obtained confirmation as secretary of state on Monday by a 99-0 vote.

Peters in a statement said he appreciated Noem’s meeting with him multiple times prior to her confirmation hearing.

“During her confirmation hearing, I pressed Gov.Noem to set aside partisan ideologies and to follow the facts when it comes to the threats our communities face – whether we’re talking about securing our borders, foreign and domestic terrorism, or even increasingly devastating natural disasters,” Peters said. “Given her openness to working on a bipartisan basis to address these and other threats to our homeland security, I voted to advance her nomination.”

Slotkin also spoke positively of Rubio and Noem in a Monday statement, saying she weighed the ability of nominees to uphold their oaths of office and willingness to obey the law and not a political party.

“Senator Rubio stands out as a leader who will do so, and I was pleased to support his nomination for secretary of state,” Slotkin said. “While I have some concerns, I also voted to advance Gove. Kristi Noem’s nomination for secretary of Homeland Security, who has made firm commitments to me regarding supporting the state of Michigan – a border state in our own right.”

The senators were staunchly opposed to Pete Hegseth’s nomination as secretary of defense and Russell Vought as director of the Office of Management and Budget, pointing to what they called a lack of experience and concerns over past conduct.

“Pete Hegseth and Russell Vought have failed to meet that standard, in public hearings and in private conversations,” Slotkin said. “I have no confidence that Mr. Hegseth, as secretary of Defense, will protect the apolitical American military, nor will he stand in the breach if given a non-Constitutional order. Mr. Vought’s demonstrated record of disregard for the rule of law should disqualify him from any position of public trust, much less the powerful director of Office of Management and Budget.”

Hegseth is a former Fox News Channel host and member of the National Guard. He has faced criticism over allegations of sexual assault, excessive drinking, and alleged financial mismanagement at two veterans service organizations at which he previously worked.

“I deeply respect Pete Hegseth’s military service and his work advocating on behalf of our nation’s veterans,” Peters said. “However, after reviewing his past professional experiences and hearing firsthand his lack of knowledge on basic issues impacting the Department of Defense, it’s clear to me that Pete Hegseth is unqualified for this position.”

Vought has ties to Project 2025, a conservative think tank’s plan for restructuring the federal government, which has concerned Democrats. He also served as head of OMB in the first Trump administration.

The primary focus of the House Judiciary Committee will be law and order, Speaker Matt Hall (R-Richland Township) said at a press conference Wednesday.

Flanked by law enforcement officials from across the state, Hall outlined several pieces of legislation that would not be carried forward from last term and highlighted instead how the committee would support law enforcement.

“The people of Michigan are concerned about violent crime in our state,” Hall said. “Law enforcement are working very hard, but we’re still a top 10 state for violent crime in Michigan, and you see us above the national average… What we saw with Democrats running the House was a series of bills that I’m happy to announce that with Matt Hall as speaker of the House… are now dead.”

Among the bills Hall said would not be revisited this term were HB 4556 of 2023, HB 4557 of 2023, HB 4558 of 2023, HB 4559 of 2023, and HB 4560 of 2023, which would have allowed inmates to petition for resentencing after 20 years. Also off the table are HB 4160 of 2023, HB 4161 of 2023, HB 4162 of 2023, HB 4163 of 2023, and HB 4164  of 2023. The bill package would have required an individual who was sentenced for a crime committed when the individual was younger than 19 to be eligible for parole consideration after serving 20 years of a sentence for life without parole.

Other bill packages Hall said would not be revisited were productivity credits (HB 4450 of 2023, HB 4451 of 2023, HB 4452 of 2023, and HB 4453 of 2023), good time credits (HB 4470 of 2023) and eliminating cash bail (HB 4655 of 2024, HB 4656 of 2024, HB 4658 of 2024, HB 4659 of 2024, HB 4660 of 2024, and HB 4661 of 2024).

“The people of Michigan want criminals to serve their time,” Hall said. “What I want to say to all the crime victims and to all the law enforcement officers in Michigan is the Michigan House Republican majority has your back, and we’re going to restore your trust in government.”

The focus, instead, for the House will be judiciary policies that help to recruit, retain and support police. Hall said a prime example was the public safety trust fund, which was HB 4606 of 2023. The legislation passed both chambers of the Legislature last term but ultimately died after the Senate made a technical amendment to the bill, sending it back to the House, which already had adjourned for the year.

Detroit Police Interim Chief Todd Bettison was among the law enforcement officers who stood alongside Hall on Wednesday. (Editor’s note: This article has been updated to reflect Bettison’s accurate title). He spoke in support of the Public Safety Trust Fund.

“That will allow the city of Detroit Police Department to hire more officers that will allow us to work in critical areas, along with our mental health calls. It will allow us to hire more neighborhood police officers. It will also me to also hire the type of police officers and others to be able to add additional resources,” he said. “We’re going to hire more officers, and we’re going to continue to push down violence in the City of Detroit.”

Hall noted the work Democrats did on the legislation last year, naming Rep. Alabas Farhat (D-Dearborn), who sponsored the legislation last term and Hall named as the minority vice chair of the House Appropriations Committee this term, and Rep. Karen Whitsett (D-Detroit), who advocated for the policy during lame duck. He did not say what, if any changes, might be made to the legislation as was written last year.

Hall also said he plans to work with the Trump administration on illegal immigration by ending sanctuary counties. He alluded to crimes committed by immigrants, such as the murder of Ruby Garcia that took place in Grand Rapids last year. Garcia was killed by her boyfriend, who was in the country illegally and had previously been deported.

“We’re going to partner with President Trump to ensure that those criminals are deported,” Hall said.

During the press conference, Hall also suggested that the House Oversight Committee would pay special attention to the Department of the Attorney General, the Department of State Police and the Department of Corrections.

Michigan’s unemployment rate rose to 5% in December, the highest rate seen since October 2021, according to data released Thursday by the Department of Technology, Management, and Budget.

The rate increased from 4.8% in November and is now up from 3.9% in February.

The increase in Michigan came as the national rate dropped by 0.1 percentage point to 4.1% last month.

Wayne Rourke, labor market information director for the Michigan Center for Data Analytics, said the disparity in the national and Michigan trends is due to overall weakness in Michigan’s key economic sectors. A payroll survey done by the center shows the number of jobs by industry. He said manufacturing is particularly weak right now, both nationally and in Michigan.

“The trend lately is Michigan’s unemployment rate’s been going up while the national rates have either been staying flat or going down, and that’s mainly because the number of unemployed people in Michigan has been going up at a much faster rate than nationally in the last year or six months,” Rourke said.

He said after three consecutive years of annual jobless rate decreases, the preliminary average annual unemployment rate rose in 2024.

In the month of December, total employment in Michigan fell by 0.2%, while national employment rose by 0.3%.

Employment also receded by 11,000 and unemployment rose by 8,000, resulting in a workforce decline of 3,000 since November 2024.

Rourke said the employment and unemployment number do not match due to different surveys. The unemployment data comes from household surveys, a smaller survey with only a few thousand in the state that also tracks labor force.

The employment data is a result of payroll survey, or business survey, which is much larger and surveys companies monthly to track and benchmark employment.

“Our actual number of payroll jobs, the business survey is showing an increase in jobs overall in Michigan, so we are seeing some gains over the year in things like construction, government and education and health services,” Rourke said. “There is some positive news in the payroll jobs, but the unemployment rate is going up.”

In 2024, the government sector increased by 18,000 jobs, construction gained 14,000 jobs, and private education and health services gained 12,000.

Just in December, manufacturing saw a loss of 2,000 jobs.

In metro Detroit, the jobless rate increased by 0.9 percentage points, with the labor force decreasing by 10,000 in December.

In March, when DTMB announced the unemployment rate had fallen to 3.9%, Gov. Gretchen Whitmer and legislative Democrats said the low rate was the result of Democratic policies.

However, the governor did not comment on the rate rising to 5% in December. A message left with her press office seeking reaction to the unemployment rate was not immediately returned Thursday.

In a separate news release, Whitmer touted 18 new jobs coming to Onaway as a result of Precision Hardwoods expanding its sawmill.

“Today we’re announcing good-paying jobs in Presque Isle County as we build on our statewide economic momentum,” Whitmer said. “I’m grateful to Precisions Hardwoods for expanding in Michigan, and I look forward to working with my partners in the Legislature to continue creating Michigan jobs, growing Michigan industry, and investing in Michigan communities. Let’s keep helping anyone ‘make it’ in Michigan.”