Economists predict steady job growth in Michigan

Michigan has been successfully replenishing the severe job losses it suffered in the last decade and will steadily continue to do so over the next two years, university researchers predicted in a report released Friday.
AP Wire
Nov 23, 2013

University of Michigan economist George Fulton and his colleagues, Joan Crary and Donald Grimes, said in their annual November forecast of the Michigan economy that the state will add 130,000 jobs during 2014 and 2015. Those gains, they say, will come on the heels of job increases of about 80,000 this year and more than a quarter-million since early 2010.

The expected job increases over the next two years will bring Michigan back to levels achieved just before the 2008-09 Great Recession and nearly halfway back to mid-2000 levels, according to the economic forecast.

About 60,000 of the 2014-15 job gains will be split among professional and business services and the trade, transportation and utilities sector, the researchers said. Other major sectors projected to add jobs during that time include construction, manufacturing and health care.

In addition, the report said housing, one of the state's weakest major sectors in recent years, has turned around.

"The story based on measures of the macroeconomy is largely encouraging and optimistic," said Fulton, the director of the Ann Arbor university's Research Seminar in Quantitative Economics.

There are microeconomic considerations as well, the report says, pointing out that there are portions of Michigan's population that are not benefiting from the state's broader successes.

"The state unemployment rate, currently around 9 percent, is still too high, well above the rates we saw prior to the Great Recession of 2008-09," the economists wrote. "For many residents, economic recovery has not yet arrived, and may not arrive any time soon.

"The proportion of the population living in poverty or near poverty has increased in Michigan from 2010 to 2012."

Fulton, Crary and Grimes also warned about the unpredictability of how Detroit's bankruptcy filing will affect the economy in the state's largest city and its residents.

"We don't know how the process will unfold at this time, but as was the case with the auto bankruptcy, the retirees associated with the Detroit government sector are particularly vulnerable stakeholders," the report says. "How the bankruptcy issues get settled can have a potentially dramatic impact on this cohort of the population.

"And of course there is the longer-term perspective of whether down the road Detroit will become a better place to work and live."

Online: http://bit.ly/1froaNq

Comments

Vladtheimp

Danged Snyder and freedom of choice (Right to Work). Danged U of M economists.

Grand Haven Happy

Yup! Funny how that works, just like it does every time.

bigdeal

they can't get the weather prediction right for three days from now, but these two jokers above are all over these speculations praising RTW and Dicky! hahaha, like this is real science here! Predicting jobs for 2014-2015!! lol Let's all remember this at that time and see how good their 'predictions' were. Who do they think they are, Rasputin?

"The proportion of the population living in poverty or near poverty has increased in Michigan from 2010 to 2012." - what part of that is Dick & cronies fault? ALL OF IT!

bigdeal

And where are all the manufacturing jobs? I thought Dick went to Asia to bring back manufacturing jobs here? You won't see the middle class increase any time soon under a Snyder admin. Service jobs & transportation jobs, wow.

Vladtheimp

Michigan, Texas lead way for manufacturing jobs - NBC News.com http://www.nbcnews.com/business/...

ithinkso1

Must be he used the same travel agent as Jenny, she didn't bring back anything either..

bigdeal

I read the link Vlad, just don't see where those jobs are. Not here in GH anyway. Must be on the other side of the state, you know, like when you tell someone you are from MI who has never been here and they automatically think of Detroit.
As for the typical R retort of Jenny (how you hate W retorts, but this is ok), she did much better than Engler who left the state in debt & dispair by giving tax breaks to the rich, and burning though the rainy day fund. I know, old link below, but I love his quote, "Starved, low wage states might be just great for processing chicken, but they are not the sort of states that build out high wage innovation economies."
http://www.dailykos.com/story/20...
as shown, we lose employment under R's, and gain under D's.
Another interesting chart here, be sure to click on your fav & least fav President to see what they have done for MI!
http://keystoneresearch.org/manu...

Kenny

ASPC is hiring like crazy in Grand Haven. I don't know what our governor or previous governor have done to help that, but I do know our owners have! It isn't about government doing anything anymore. It's about companies and people taking care of themselves. Government isn't doing what it was intended for.

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