The Wayne County economy has recovered most of its employment losses resulting from the COVID-19 pandemic, according to a new University of Michigan study. The U-M’s Research Seminar in Quantitative Economics (RSQE) analysis says the county’s jobless rate had fallen to 4.5%, as of July, representing a nearly 90% recovery of the pandemic-induced job losses.
The relatively strong recovery, researchers say, is driven by the end of pandemic restrictions on the service economy, significant federal income support, rising personal comfort levels and reopening of schools for in-person instruction. They also expect the city of Detroit will resume its promising economic trajectory before the pandemic.
“The pandemic has been difficult for everyone and we haven’t defeated this virus yet,” said Wayne County Executive Warren C. Evans. “But we are regaining our pre-pandemic economic momentum. My administration has worked hard to support local small businesses and workers so the economy could safely reopen. I’m grateful to our business leaders and workers for their efforts throughout the pandemic.”
However, economists note the recovery has not been consistent across all sectors. The Wayne County Economic Outlook for 2021–23 is optimistic for finance and insurance, transportation equipment manufacturing, and transportation and warehousing industries. However, accommodation and food services, along with the arts, entertainment and recreation industries are expected to lag well behind their pre-pandemic levels by the end of the forecast. U-M economists are also concerned that a faster recovery in higher-income sectors could exacerbate income inequality.
“Throughout the pandemic we’ve said we are all in this together and the recovery can’t leave anyone behind,” said Evans. “Our responsibility as government is to be there to support industries and their workers that are slower to recovery. Whether it is rental assistance for residents or workforce development, Wayne County is committed to making this economy work for everyone in our 43 communities. We will continue to work with the state and federal governments as well as private-sector partners to ensure opportunity is equitably distributed.”
From 1969-2016, Wayne County trailed the State of Michigan in economic growth, however in 2016, Wayne County experienced a turnaround in economic pace and continues to outpace the state to date. This growth scan be contributed in part to the numerous programs, initiatives and partnerships implemented by the Evans administration. The administration followed this same pattern in addressing economic hardships during the pandemic.
Wayne County’s response to the economic impact of the COVID-19 pandemic has included:
- $70 million in CARES Act funds for “Back To Work” grants to nearly 5,000 small businesses across Wayne County’s 43 communities, with a special emphasis to assist minority-, women-, and veteran-owned business.
- $3 million in CARES Act funds for $25,000 grants to 117 Wayne County non-profits
- $6 million in CARES Act funds to deliver $500 grants to 12,000 Wayne County workers affected by Michigan’s Dec. 2020 health and safety order.
- Distributed fresh food to at-risk and food insecure Wayne County residents at multiple locations across Wayne County in partnership with Forgotten Harvest, Gleaners, and the Muslim Community Council.
Despite revenue losses and other challenges, Wayne County has maintained an investment-grade bond rating throughout the pandemic and passed its seventh straight balanced budget for the 2021-22 fiscal year.
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