Economic Impacts of County Population Changes in Michigan - Summary Report

December 1, 2009
by Soji Adelaja, Yohannes Hailu, Melissa Gibson, Majd Abdulla, Chuck McKeown, Benjamin Calnin, Tyler Borowy, Nigel Griswold and Trevor Lewis

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On December 1, 2009, LPI published the Economic Impacts of County Population Changes in Michigan (both full and summary report versions). The thousands leaving Michigan in search of better opportunities are more than casualties of the state’s depressed economy, Michigan State University researchers say. Emigration deepens the state’s malaise as well.

“When people leave town, so does their economic activity,” said Soji Adelaja, lead author of the study that charts the impacts of Michigan’s population loss, and Director of the Land Policy Institute at MSU. “This is especially true in a service economy, which depends upon people providing and needing services. The impact of these departures cuts deeper into the economy.”

Michigan has lost more people each year as jobs evaporated, with 9,388 fewer in 2005; 34,088 in 2006; and 46,368 in 2007. Sixty-three out of 83 Michigan counties lost population between 2000 and 2008, especially urban counties. The outflow represents a loss of 15,855 jobs and $1.9 billion in economic output, Adelaja and colleagues estimated. In addition, the state lost $585 million in labor income, $346 million in property income and $2.49 billion in home equity value.

Much of the population decline was triggered by manufacturing job losses, especially from the auto industry in southeastern Michigan. Wayne County lost more than 100,000 residents out of approximately 2 million, or one in 20 people between 2000 and 2008. Not all left the state—some simply moved to other counties. But Wayne County’s exodus of residents (111,232) for this period was second only to Orleans Parish in Louisiana (172,821) following Hurricane Katrina in 2005. From 2006 to 2008, Wayne County charted the highest population loss per year in the nation. . . .

Attracting desirable groups into such metropolitan areas should be a key strategy, according to Dr. Adelaja. Those groups include young “knowledge workers,” educated immigrants and entrepreneurs who can leverage Michigan’s assets—an emerging renewable energy industry, a skilled work force, research universities and affordable urban properties. . . . Other revitalization strategies include deliberately shrinking urban areas and promoting tourism.