U.S. manufacturing added 412,000 jobs in 2025, with Michigan posting its strongest gains in 20 years as EV production and reshoring investments transform the state's industrial economy.
The U.S. Bureau of Labor Statistics reported Friday that American manufacturing added 412,000 jobs in 2025, the strongest annual gain since 2010 and a figure that economists say reflects the combined effects of reshoring incentives from the Inflation Reduction Act, CHIPS and Science Act investments, and a broader reconfiguration of global supply chains that is pulling production back to domestic facilities.
The Midwest outperformed every other region in manufacturing job growth, adding 187,000 positions, with Michigan accounting for 31,400 of those gains — the state’s strongest manufacturing employment performance in over two decades. The growth was concentrated in the EV battery and vehicle assembly sector, with Ford, GM, and several battery component suppliers all expanding Michigan footprints during the year.
Michigan’s unemployment rate fell to 3.8 percent in December, matching its lowest level since 2000. The state’s labor department reported that manufacturing wages rose an average of 4.2 percent in 2025, outpacing inflation for the second consecutive year and marking a meaningful improvement in real income for workers in the sector.
“Michigan is winning the manufacturing resurgence,” said Gov. Whitmer in a statement accompanying the data release. “Our investments in workforce training, our partnerships with automakers and suppliers, and our commitment to being the best place in the world to build an electric vehicle are paying off for workers and families across this state.”
The Southeast Michigan region, encompassing Wayne, Oakland, and Macomb counties, saw the largest absolute gains, adding 14,200 manufacturing jobs. Western Michigan added 8,900 positions, driven by growth in furniture manufacturing, medical device production, and aerospace component supply chains that have been reshoring from Asia.
Economists cautioned that maintaining the growth trajectory would require continued investment in workforce pipelines, particularly for skilled trades and technical positions that remain in short supply. Michigan community colleges and the Going PRO talent fund saw record enrollment and grant requests in 2025 as employers raced to fill openings.
The Federal Reserve’s regional beige book, published the same day, described manufacturing conditions in the Midwest as “robust” with no signs of near-term softening, suggesting the job growth trend is likely to continue into the first half of 2026.
