Michigan economic outlook

Economists at the University of Michigan say the state’s economy will steadily move forward during the next two years after five years of solid growth. In their annual forecast, George Fulton and colleagues Joan Crary and Donald Grimes said the state will add more than 132,000 jobs during the next two years. The U-M economists predicted employment gains of 59,400 jobs during 2015 and 73,200 jobs during 2016. They also predict that Michigan’s sustained recovery will help lower the state’s unemployment rate from the current rate of 7.1 percent to 6.7 percent at the end of next year and 6.3 percent at the end of 2016. Also noted was Detroit’s bankruptcy being approved and the creation of an exciting “fresh start” in the city. The forecast also mentions major credit-rating agencies have upgraded Michigan’s outlook in the past few years. Fulton says the Michigan economy has certainly come a long way in the past five years, and that progress should be celebrated. Although the forecast is optimistic, the U-M economists caution that Michigan continues to be among states with the highest jobless rates, ranks in the bottom third in per capita personal income, lags in population growth among the young and college-graduated adults and is home to numerous residents not yet vested in the recovery.  (MRN)