The latest Detroit Economic Outlook for 2022-2028, recently released by the University of Michigan, paints a promising picture for the city’s future. The forecast predicts sustained growth in Detroit’s economy, marked by job creation, rising wages, and a commitment to extending opportunities to its residents.
Gabriel Ehrlich, director of U-M’s Research Seminar in Quantitative Economics and lead author of the forecast, states, “On balance, we expect Detroit’s recovery to continue over the next several years. Our forecast takes Detroit’s unemployment rate below 6 percent on a sustained basis, while wages rise for city residents and those who work there. We believe that qualifies as an encouraging outlook for Detroit’s economy in the years to come.”
Continued Job Gains and Higher Wages
One of the highlights of the economic forecast is the city’s projected job growth. The report indicates that Detroit will see ongoing job gains over the next five years, both within the city boundaries and among its residents. In 2023, nearly 5,000 jobs are expected to be added in the city, with 4,300 more anticipated in 2024. This positive trend is expected to continue, with an average of 1,900 jobs per year through 2028.
For Detroit residents, this means more employment opportunities. Employment is expected to follow a similar pattern, growing by an average of 3,600 jobs in 2023 and 2024 before leveling to 1,700 jobs per year from 2025 through 2028. This indicates that there will be a gap that companies could fill by searching beyond the city’s residents, but this forecast promises a more stable and prosperous future for Detroiters.
Moreover, Detroit residents are witnessing substantial increases in their paychecks. The city’s improving labor market has led to a remarkable 47 percent rise in average annual wages for residents, from $26,600 in 2014 to nearly $39,200 in 2021. Looking ahead, the city’s average household income is projected to reach $50,300 by 2028, further improving the economic well-being of Detroit families.
Attracting Good-Paying Jobs and Extending Opportunities
Detroit’s economic success story is not just about numbers; it’s about a strategic approach that focuses on attracting high-paying jobs for its residents. Recent developments, such as Amazon’s new packaging facility and GM’s plan to convert the former AMC headquarters into a warehouse for electric vehicle parts, are prime examples of this strategy in action. These initiatives are not only creating jobs but also providing opportunities for Detroit residents, with a significant percentage of the workforce being local.
One notable program contributing to Detroit’s growth is “Jump Start,” a groundbreaking $100 million scholarship program aimed at assisting long-term unemployed residents in reengaging in the job market through paid education and career/job training programs. This innovative initiative is expected to reintegrate 1,200 Detroiters into the workforce, with plans for even broader outreach in the future.
As of August 31, 2023, there are 7,010 job openings available in Detroit, indicating a strong demand for skilled workers and a healthy job market.
Jay Rising, Chief Financial Officer of the City of Detroit, emphasizes, “The steady growth projected in Detroit’s economy is good news as the forecast expects to see more job gains and wage increases. While risks remain, we will continue employing the administration’s growth and opportunity strategies to further improve the quality of life for Detroiters.”
A Collaborative Effort for Economic Prosperity
The Detroit Economic Outlook is the result of a collaborative effort between the City of Detroit University Economic Analysis Partnership, comprising economic researchers from the City, Wayne State University, Michigan State University, and the Research Seminar in Quantitative Economics (RSQE) at the University of Michigan. This partnership underscores the commitment of various stakeholders to monitor, analyze, and nurture Detroit’s economic growth.
Detroit’s economic resurgence is not just a flash in the pan; it’s a sustained and well-orchestrated effort to rebuild and revitalize the city’s economy. The Detroit Economic Outlook for 2022-2028 provides a glimpse into a brighter future, where job growth, rising wages, and opportunities for Detroit residents take center stage. With innovative programs and a strategic focus on attracting good-paying jobs, the Motor City is on a path to enduring economic prosperity.
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