Mississippi’s economy is steady but vulnerable.
Layoffs were low early in the year. In January, about 12,000 layoffs and discharges were recorded. That’s 7.7% less than in January 2024. The state’s 12-month average layoff rate was 1.1%. That matches the national average. It’s also slightly lower than past years.
But job growth is slowing. Employment is projected to rise only 0.2% in 2025. In 2026, it may fall by 0.3%. Fewer people are being laid off, but new jobs are not being created quickly.
Manufacturing is at risk. Jobs in the sector are expected to drop 3.5% this year. That means about 5,100 job losses. MW Components in Pontotoc already laid off 121 workers in January. That event is under review for possible WARN Act violations.
National trends may add pressure. Consumer goods and auto manufacturing layoffs are rising. Mississippi could be affected even without direct announcements. Any national slowdown could spill over.
Healthcare is another key concern. Federal Medicaid cuts could hit hard. Mississippi relies heavily on Medicaid funding. If Congress passes the "Big Beautiful Bill," hospitals may lose funding. That could lead to layoffs, unpaid reimbursements, or even closures.
Some hospitals are already struggling. Maternity wards are closing. Staff are being cut. Healthcare is projected to grow by 3.1% this year, adding 3,600 jobs. But this growth depends on stable federal funding. If cuts go through, the forecast could reverse.
Retail and wholesale trade are declining. The state is expected to lose 2,400 jobs in these sectors in 2025. That’s a 1.4% drop. National retail layoffs are up 274% so far this year. Brands like Macy’s and Joann are closing stores. Mississippi could see local impacts soon.
Other sectors are shrinking too. Private education may lose 670 jobs, a 5% drop. Government jobs are also expected to decline by 1%.
A few sectors are growing. Construction may rise by 2.2%, adding 790 jobs. Mining and oil and gas extraction may grow by 2.6%, adding 160 jobs. These increases are small but positive.
Real GDP in Mississippi is projected to rise 1.1% in 2025. That’s lower than past estimates. Tariffs and broader U.S. slowdown are weighing on growth. Wages are going up slightly, but inflation could limit real gains.