Isely’s data indicates that employment is projected to
grow 1% to 1.6% in 2025, a small uptick compared to 2024; sales are
forecasted to grow 3.1% to 3.6% in 2025, outpacing growth compared
to the previous year; and wages are expected to grow 3% to 3.4% in
2025, a slower rate than 2024’s wage growth.
Isely said the region’s automotive industry will see a clearer
direction in 2025, following President Donald Trump’s recent executive
order that rescinds the tailpipe emission standards set by President
Joe Biden's administration.
“Before the election, we didn't know whether the
policies would be favoring electric vehicles (EV) or whether they
would be favoring traditional, internal combustion engine (ICE)
vehicles,” Isely said.
“Now as we get through that first round of signatures
by President Trump, we're seeing that the thumb on the scale for EVs
is being eased off, and that there'll be more activity around ICE
vehicles, and the reason that's important here in Michigan is
automakers didn't know which car to build.”
Despite these positive indicators, Isely acknowledged
some areas of concern.
“We know that things like tariffs have people worried,”
Isely said. “In fact, large numbers of employers in West Michigan
have told me that they're holding off on hiring until they
understand what these tariffs look like. Just this week as we
listened to (Trump), he kicked some of those decisions off for a few
more weeks. So it's going to be a little while before we have
certainty about that, and businesses are worried about it.”
Isely said consumer spending remains a potential weak
spot in the economic outlook for 2025, expressing concern over the
financial strain many households are experiencing. After years of
borrowing, Isely said many consumers are overextended and spending
too fast for their income.
“People are having to take up second jobs in numbers we
haven't seen recently,” Isely said. “We can see them getting trouble
on their debt. We can see that they've blown through their savings.
“And we can see that even though the unemployment rate
isn't getting very high, the number of people who have been
unemployed for half a year is rising.”
