Michigan Loses Second-Most Jobs Nationwide in January

Report shows Michigan's job losses were second only to Georgia as nationwide job cuts hit highest January total since 2009

Published on Feb. 7, 2026

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According to a report from Challenger, Gray & Christmas, a Chicago-based outplacement firm, Michigan lost 19,714 jobs in January 2026, the second-highest total of any state in the country. This comes as nationwide job losses reached their highest January level since the Great Recession, potentially signaling more cuts to come in 2026.

Why it matters

The report highlights the economic challenges facing Michigan, which has seen its unemployment rate rise above the national average. The job losses span multiple industries, including transportation and technology, and come despite President Trump's claims of a 'booming' economy in the state.

The details

The Challenger, Gray & Christmas report found that Michigan's job losses in January 2026 were second only to Georgia, which saw 31,415 jobs lost. In contrast, Michigan lost only 2,923 jobs at this time last year. Nationwide, the report showed 108,435 jobs were lost in January, the highest total for that month since 2009. The biggest losses were in the transportation (-31,243) and technology (-22,291) sectors.

  • Michigan lost 19,714 jobs in January 2026.
  • In January 2025, Michigan lost 2,923 jobs.
  • The report covers job losses nationwide in January 2026.

The players

Challenger, Gray & Christmas

A Chicago-based outplacement firm that compiles regular reports on job losses and layoffs across the United States.

Andy Challenger

Workplace expert and chief revenue officer for Challenger, Gray & Christmas.

Kendall Witmer

Rapid response director for the Democratic National Committee.

President Donald Trump

The President of the United States, who claimed the economy was 'booming' in Michigan during a recent speech.

Acrisure

A Grand Rapids-based insurance brokerage firm that announced plans to cut 400 accounting positions, 250 of which are in Michigan.

Dow

A Midland-based company that announced plans to cut about 4,500 jobs, or 13% of its total workforce, though it's unclear how this will impact its Michigan workforce.

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What they’re saying

“Generally, we see a high number of job cuts in the first quarter, but this is a high total for January. It means most of these plans were set at the end of 2025, signaling employers are less-than-optimistic about the outlook for 2026.”

— Andy Challenger, Workplace expert and chief revenue officer, Challenger, Gray & Christmas (Freep.com)

“Donald Trump has completely wrecked the job market, causing over 19,000 layoffs in January in Michigan alone. Everyday Michiganders are getting laid off, struggling to find a job and being forced into part-time jobs at a breakneck pace because of Trump's reckless economic policies... When will enough be enough?”

— Kendall Witmer, Rapid response director, Democratic National Committee (Freep.com)

What’s next

The report did not indicate the specific industries in which the jobs were lost in Michigan, but the state's unemployment rate in December 2025 was higher than the national average. More details on the job losses and their impact on Michigan's economy are expected in the coming weeks.

The takeaway

The Challenger, Gray & Christmas report paints a concerning picture of Michigan's economy, with the state losing more jobs than all but one other state in the country. This comes despite the President's claims of a 'booming' economy, underscoring the disconnect between political rhetoric and the real-world experiences of workers and families in Michigan.