The annual Michigan Economic Outlook survey was released at the Detroit Economic Club Tuesday. For the first six months of 2024, those surveyed said the economic outlook in Michigan was more positive, but still facing challenges.
Short-term concerns are related to a soft economic growth due to high interest rates that are still impacting the mortgage industry, the auto industry, and housing and building trades. The good news is inflation is falling giving the Federal Reserve room to cut interest rates. Most surveyed expected growth in the latter half of the year and into 2025.
A continued track of concern is Michigan’s population and the state’s ability to attract and retain a younger work force.
Gabriel Ehrlich from the University of Michigan spoke at the report’s unveiling and says we have an older population and aging work force, which presents a challenge.
“We really don’t see a lot of room for a lot more growth of the labor force, even though it’s a tight job market. And so typically you think a tighter job market brings people into the labor force. We think that’s going to be tough in the years to come. And so, you know, growing the population, especially the working age population, it’s an important ingredient for economic growth.”
Ehrlich says young people need career opportunities if they’re going to stay in Michigan, but the national competition for talent is fierce.
Video of the Detroit Economic Club’s review of the survey is here: https://youtu.be/NQOxGJvoy6Q
