The two-term governor had been speculated to be a prime contender for secretary of labor. But a gubernatorial spokeswoman told The Detroit News Granholm's not interested and would not accept if President-elect Barack Obama offered her the job.
"The governor made it clear she does not want to be considered at this time," said Granholm spokeswoman Liz Boyd.
"She is interested only in working on the big issues facing this state: Growing the economy and creating jobs."
Boyd deflected a question about whether the 49-year-old governor had been vetted by the Obama transition team, saying "that's not material."
Other names floated as possible labor secretary candidates include Ed McElroy, former president of the American Federation of Teachers; Linda Chavez-Thompson, former AFL-CIO vice president; Mary Beth Maxwell, executive director of American Rights at Work; and Maria Echaveste, former Clinton White House adviser, the News said.