According to findings from Chicago-based firm Challenger, Gray & Christmas, Michigan had the second highest number of job cuts in the country in January 2026. The report indicates Michigan lost 19,714 jobs in January, compared to 2,923 jobs this time last year.
These results come in the wake of President Donald Trump’s visit to Detroit slightly less than a month ago, where he claimed the tariffs he imposed are boosting the economy, particularly the state’s automotive industry.
The 2026 numbers are second only to Georgia, which saw 31,415 layoffs. Across the country, layoffs increased by 118% compared to the same month last year. The firm said it's the highest number of January job cuts since 2009, and the lowest January hiring period on record.
“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 for the company said in a press release.
Transportation and technology were the sectors that cut the most jobs, particularly UPS and Amazon. Health care companies and hospitals were also significantly affected, citing inflation, high labor costs, and lower reimbursements from Medicaid and Medicare.
Challenger, Gray & Christmas reported that contract loss was the biggest reason for job cuts across the country this past month, followed by market and economic conditions, restructuring, and store or department closings.
AI was responsible for 7% of total job cuts in January. The firm reported that it’s difficult to judge the impact of AI on layoffs, but said the market appears to reward companies that mention it.
NPR reports economists across the country have predicted that the economy won’t enter a recession this year. But many are of the opinion that economic growth in 2026 will most benefit AI-related companies and wealthier Americans.
