The economy in Southwest Michigan faces some challenges but also has many strengths, according to the W.E. Upjohn Institute for Employment Research, which is based in Kalamazoo.
Michael Horrigan is president of the Upjohn Institute. He said jobs lost in the pandemic have been recovered. This is especially relevant to Michigan, which saw a steeper decline during the pandemic compared to the rest of the country.
"This is typical of Michigan. Our recessions are deeper because of the manufacturing base," Horrigan said.
Horrigan added that the region’s economy appears “fairly robust."
“Diversity is kind of insurance against risk, if you will. It's got a diverse industry base. And I think on a number of metrics, we are recovered from the fall that we had in 2020.”
Taking a deeper dive into the numbers, Kalamazoo County was the only county in Southwest Michigan to see an increase in its working-age population from 2013 to 2023.
Horrigan attributed most of that growth to the appeal of the Kalamazoo metro area. But he added that Kalamazoo still faces challenges.
“There are areas in Kalamazoo that have very high poverty rates. There's areas in Kalamazoo that have higher mortality rates for babies and as well as low birth weight."
Horrigan said slowing workforce growth, and high housing and childcare costs could affect the region’s economic future.
Southwest Michigan's more rural counties share in these potential risks, with additional setbacks not seen in Kalamazoo County.
None of the region’s predominantly rural counties saw their working-age population go up from 2013 to 2023. Compounding this, jobs requiring a high school diploma or less are predicted to decline.
Horrigan added that rural community colleges could help to counter this potential issue.
“There is a focus in those community colleges on the benefits of getting some sort of certification, professional certification, a license, things like that. So, the rural areas are not without sort of a pathway for the folks that graduate.”
Horrigan added some rural areas could see industry growth, attracting more workers with bachelor's degrees or more.
"With the slowing employment growth and population growth, those industries are going to be looking for more talented workers, for more skilled workers."
Michael Symonds reports for WMUK through the Report for America national service program.
