Labor Market Pulse · Information Technology · October 2026
Information Technology Labor Market Report: Muskegon-Norton Shores, MI MSA — October 2026
Muskegon IT pay splits sharply between engineering and infrastructure roles.
Muskegon Software Engineer advertised pay hit $185,460, above the national median of $154,403, while local Systems Administrator pay fell to $71,496 against a rising $102,503 nationally.
Free archive edition. Published by WageScape as sent to subscribers; data as of October 2026.
Key indicators
- Metro unemployment rate: 4.6% — Down 0.7 pts YoY, steepest improvement in Michigan
- Metro labor force decline: -8.2% — Year-over-year, largest drop among Michigan metros
- Metro employment decline: -7.1% — Year-over-year, largest reduction in Michigan
- National tech layoffs YTD: 133,417 — Across 325 companies, exceeds all of 2025
Key takeaways
Software engineering pay has decoupled from the local labor market.
Muskegon's Software Engineer advertised median of $185,460 now runs above the national figure of $154,403, an unusual inversion for a secondary Michigan metro with a shrinking workforce. Consider benchmarking this role against regional scarcity instead of historical metro norms — it signals employers are paying a premium to retain a thin bench, a sign of localized scarcity pricing rather than broad market strength.
Systems administration pay is falling here while rising nationally.
Metro Systems Administrator advertised pay dropped significantly to $71,496 even as the national median climbed to $102,503, widening the gap to roughly 30%. Current conditions suggest build-vs-buy decisions for infrastructure support favor remote or outsourced staffing, since local advertised rates may not reflect true competitive cost to retain in-market talent.
A shrinking labor force is colliding with falling unemployment.
Muskegon's labor force declined 8.2% over the year even as unemployment fell to 4.6%, meaning the decline reflects fewer available workers more than stronger job creation. This dynamic likely tightens competition for the technical talent that remains, reinforcing retention as a higher-leverage lever than external hiring for scarce IT skills.
Cybersecurity pay gains locally track the national premium story.
Cybersecurity Analyst advertised pay rose moderately to $99,237 locally, trailing the national $107,327 but moving in the same direction, consistent with national data showing 87% of tech leaders paying premiums for specialized skills. Headcount planning should assume this gap narrows further if data center and infrastructure buildout extends into West Michigan.
Median advertised pay by role — Muskegon-Norton Shores, MI MSA
| Role | 25th percentile | Median advertised pay | 75th percentile | Metro trend | National median |
|---|---|---|---|---|---|
| Data Scientist | $98,861 | $118,369 | $148,531 | Significant decline | $145,881 |
| Systems Administrator | $66,592 | $71,496 | $75,718 | Significant decline | $102,503 |
| Network Engineer | $72,268 | $72,269 | $72,269 | Stable | $115,757 |
| Software Engineer | $161,321 | $185,460 | $206,527 | Significant increase | $154,403 |
| Help Desk/IT Support Specialist | $41,860 | $46,800 | $53,422 | Stable | $53,129 |
| Cybersecurity Analyst * | $84,765 | $99,237 | $120,000 | Moderate increase | $107,327 |
| IT Project Manager * | $85,840 | $112,166 | $124,800 | Stable | $118,150 |
* State-level figure shown where metro postings were too few.
WageScape's median is calibrated to correct for spurious low-value postings (reported as the 60th percentile of raw advertised pay). Download: CSV · JSON
Local market conditions
Muskegon-Norton Shores unemployment fell to 4.6% in September, down 0.7 points year-over-year — the sharpest metro-level improvement in Michigan — yet this coincides with a labor force that has contracted 8.2% and employment that has dropped 7.1% over the year, the steepest decline of any Michigan metro. Manufacturing disruptions, including the Pace Industries closure affecting 145 jobs and Michigan Spring & Stamping's 116 layoffs, are shrinking the overall workforce base from which local IT talent and employer demand both draw.
What it means
Shrinking labor force paired with falling unemployment signals a market where fewer workers are available locally even as fewer are actively job-seeking — a structural tightness that advertised pay data confirms: Muskegon Software Engineer pay has risen sharply to $185,460, now exceeding the national median of $154,403, while Systems Administrator and Network Engineer advertised pay sit far below national levels at $71,496 and $72,269 respectively. That split suggests local employers are bidding aggressively for scarce senior technical talent while infrastructure and support roles remain comparatively depressed, making those functions strong candidates for managed services or remote/hybrid sourcing beyond the metro. Consider reviewing whether infrastructure and support headcount should shift toward outsourced or remote delivery models, freeing budget to compete for the senior engineering talent the local market is pricing at a premium.
Looking ahead
Early indicator: Watch whether Muskegon's labor force decline stabilizes or deepens in the October release; continued contraction would further tighten the pool for infrastructure, security, and support hires regardless of unemployment headlines.
Emerging pressure point: National tech layoffs have already topped 133,000 for the year as of late October, concentrated outside Michigan. Monitor whether any displaced cloud or security talent becomes available to Muskegon employers through remote hiring, given 41% of technologists say they would trade salary for remote flexibility.
Worth watching: Local Systems Administrator and Network Engineer advertised pay sit well below national levels; if the gap persists through year-end, expect continued difficulty filling these roles locally and growing reliance on outsourced or offshore infrastructure support.
Potential inflection point: Statewide data center investment and infrastructure hiring are expanding even as tech-hub metros pull back. Track whether any of that buildout activity extends into West Michigan, which could shift local demand and pay for infrastructure-adjacent roles.
Sources
- Michigan Department of Technology, Management & Budget — Muskegon-Norton Shores unemployment at 4.6% in September, down 0.7 pts YoY
- Michigan Department of Technology, Management & Budget — Muskegon MSA labor force declined 8.2% and employment fell 7.1% over the year
- Upjohn Institute Michigan Layoff Tracker — Pace Industries closure affecting 145 jobs in Muskegon
- Tech layoff tracking aggregator — 133,417 tech employees laid off at 325 companies through Oct 21, 2026
- Industry workforce survey — 41% of technologists would trade salary for remote flexibility
- Industry workforce survey — 87% of tech leaders pay premiums for specialized skills
Methodology
Advertised pay from active employer job postings, not survey data. WageScape's median is calibrated to correct for spurious low-value postings: distribution analysis shows roughly the lowest 10% of raw values are erroneous entries, so the reported median is the 60th percentile of raw advertised pay. WageScape observes 98% of U.S. job openings daily.
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