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Michigan Falling Behind In Personal Income
Michigan continues to fall behind other states in per capital personal income. Although Michigan had the 16th-highest per-capita personal income in 1999, as of 2022, it ranked 39th overtaken by states like Ohio, Wisconsin and Indiana. In a recent report by Michigan Future, Inc. it is expected that Michigan will fall to 41st behind Georgia and Idaho when the 2023 data comes out.
According to the report, the driving factor is a lack of growth in high-wage, knowledge-economy industries which outweighs the modest growth in wages for plant workers in the automotive industry.
Between 1999 and 2022, real personal income per capita in the U.S. grew by 42.1%. In Michigan, it grew by only 24.2%. The report attributes part of this due to slow earnings growth in high-wage, high-education attainment industries such as computer manufacturing, information, finance and insurance where annual wages average more than $100k. In comparison, the automotive manufacturing annual wages average approximate $73k for plant workers.
Michigan’s per-capita income in 2022 was 13% below the national average, its lowest-ever mark since the data was first compiled in 1929. In order to improve these stats, Michigan will need to find effective ways to increase the number of young professionals living and working here as well as increase the number of residents with post-secondary degrees.