Updates About Jobs

The Senate Fiscal Agency (SFA) recently released the Monthly Revenue Report for May 2026. The report detailed that tax collections came in at $2.7 billion, $368.4 million above expectations and 3.8% higher compared to last May.

Leading the pack in revenue was net income tax, which totaled $1.2 billion, and came in $214.3 million higher than expected. Combined sales and use tax was a close second bringing in $1.1 billion, a slight decline from last May, but still coming in $52 million above expectations. Two surprises, first collections from the repealed Single Business Tax, Michigan Business Tax (MBT), and Corporate Income Tax (CIT) which was 89% higher than last year, totalling $146.6 million. Second, Individual Income Tax refunds were $147.1 million lower than expected.

General Fund (GF) collections were $285.1 million above the estimated number, and the School Aid Fund exceeded the predicted number by $72.9 million.

In other economic news, the Michigan Department of Technology, Management and Budget has released its latest jobs report. Michigan’s unemployment has risen to 5.1% compared to the national average of 4.3%. Despite this, Michigan has added over 17,000 payroll workers since February, with manufacturing seeing the largest increase. Since last May, Michigan has experienced its largest job losses in the transportation and utilities sector, which lost 9,000 jobs, followed by manufacturing (-8,000) and leisure and hospitality (-6,000).

Ryan Hunt, CEO of the Michigan Works! Association, provided testimony in the Senate Appropriations Subcommittee on LEO/MEDC this week on workforce impacts related to proposed SNAP and Medicaid work requirements. Hunt’s testimony included a request for $25 million to support implementation, noting that local offices are already experiencing increased demand and may require additional staffing to manage higher caseloads and reduce administrative errors.

Hunt also urged continued funding for the Going PRO Talent Fund at $31.8 million, so that workers who go through the program can continue to receive training and see wage increases.

Gotion, Inc., the developer of the proposed $2.36 billion electric vehicle battery plant near Big Rapids that was approved in 2022, is disputing The Michigan Strategic Funds’ efforts to recover $23.7 million in previously given grant money. The Michigan Strategic Fund issued a notice of default in September 2025, citing a lack of activity at the project site for three months. Recently, the Department of Attorney General weighed in and called for all Site Strategic Readiness Plan grant dollars given to the company to be repaid immediately.

In a letter to the state (first reported by Crain’s Detroit Business), Gotion asserted it is not in default under the grant agreement and instead said that project delays have occurred due to local opposition and legal challenges. The company claims that much of the funding has already been spent on buying land for the project and early construction. The only resolutions offered by Gotion included the township buying back the land for same amount that Gotion previously paid, or transferring the land to the state instead of repaying the grant funds.