Factors that could Improve Michigan’s Economy
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Statistics suggest that Michigan’s economy is improving. This year could bring more success as the unemployment rate falls, auto sales increase, and cheap gasoline puts extra cash in everyone’s pockets. Thank goodness for oil shale and fracking!
Statistics suggest that Michigan’s economy is improving. This year could bring more success as the unemployment rate falls, auto sales increase, and cheap gasoline puts extra cash in everyone’s pockets. Thank goodness for oil shale and fracking!
It’s fair to suggest that there will always be unexpected and unpreventable obstacles when it comes to nurturing economic growth, but it seems that Michigan could be heading towards a very positive 2015. Analysts, state officials, and corporate leaders agree that Michigan really helped itself when it became a ‘right to work’ state, infuriating job-killing unions.
Economists from the University of Michigan predict approximately 60,000 new jobs in 2015, followed by 73,000 in 2016. The state added 39,000 new jobs between November 2013, and November 2014, causing the state unemployment rate to fall to 6.7% from 7.8%.
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Lower Gas Prices Lead to Additional Spending
As gas prices remain below $2 a gallon at many stations throughout Michigan, consumer confidence is high, good news for most businesses. The Detroit Three, of which many people believe GM should not be a part because of a controversial bailout (the Detroit Two?), are profitable. Ford is certainly a respectable company for not asking for or needing a bailout.
Manufacturers will not Provide Many Jobs
At this point, although demand for new cars predicts to increase, the auto industry should be able to handle it with existing plants. Most likely, if auto companies decide to expand, it would likely come in lower tax states such as Alabama where Toyota and other auto companies operate. Since Michigan has become a ‘right to work’ state it could allow them to stick with Michigan.
Even though the sales of automobiles in the US could reach the 17 million mark during 2015, employment in Michigan auto factories may not get much higher. In fact, the sector expects to add only 6,000 jobs in 2015, in comparison to the 77,000 jobs introduced between 2011 and 2013.
Detroit still has a long way to go in terms of cleaning itself up. It is focusing on improving the downtown area and it is working hard in terms if tackling destitute areas. This has caught the eye of some investors.
Temporary Staffing will Increase
Contract positions and temporary jobs represent an estimated 36% of Michigan’s job growth since 2009. Employers rely more heavily on temporary jobs because of Obamacare and other reasons that make hiring full time employees expensive and risky. Obamacare is devastating the health care sector and thousands of companies who are trying to cope with this burdensome law.
At the same time, Michigan’s hospitality sector will continue to surge, as resorts, hotels and tourist destinations in the northern part of the state flourish. The hospitality and leisure sector can expect to add around 9,000 jobs in 2015. Well, even part time jobs are better than no jobs.
