After declaring bankruptcy in 2013, Detroit is stronger than ever in the job sector. The City of Detroit, in conjunction with the University of Michigan, released a detailed report revealing that there’s been a 1.7% growth rate in employment for 2019. This number surpasses the 1.0% growth rate of household employment in Michigan.
“Bringing new jobs to Detroit and filling them with Detroiters has been a cornerstone of the Mayor’s economic development strategy,” said David Massaron, Chief Financial Officer for the City of Detroit. “This independent forecast validates that strategy as we work to ensure Detroiters have opportunities for good jobs.”
U of M economist Donald Grimes stated that employment would increase from 47.3% to 48.5% between 2018 and 2024 due to new developments such as the Gordie Howe International Bridge and the FCA Mack Avenue plant. Unemployment rates decreased from 18.7% in July 2013 to 8.6% in 2019. The report states that these rates will reduce by 7.9% in 2023 and 2024, the fastest in the state.
“Detroit has vastly improved its financial position and prepared for any future financial hiccups by doubling its rainy-day fund,” said U-M economist Daniil Manaenkov. “Despite that progress, Detroit’s economy continues to face well-known challenges, including an elevated poverty rate and relatively low educational attainment among its residents.”
Other highlights in the report include:
- Employment to expand by about 6,700 jobs through 2024 with most gains coming from service sector jobs such as financial, professional and business services, leisure and hospitality, and education and health care. Major new construction projects will also add considerably to resident city employment.
- Manufacturing is projected to remain Detroit’s second-largest sector, behind education and health services, making up 16% of overall employment.
- Total resident income is expected to rise by 4-4.7% per year from 2020 to 2024, outpacing statewide income growth.
This report was generated by U of M’s Research Seminar in Quantitative Economics. Economists at Michigan State University and Wayne State University also contributed to the study.
To read the report in full, CLICK HERE.