economy

Economists predict Michigan’s economic news should improve rapidly the rest of the year. (See report here.)

The University of Michigan’s Research Seminar in Quantitative Economics (RSQE) says the falling number of cases, hospitalizations, and deaths due to COVID-19 plus the vaccinations are good signs.

More than 34,000 small businesses are waiting to see if they’ll get a share of $55 million in state grants.

The Michigan Small Business Survival Grant program is meant to aid businesses impacted by restrictions on gatherings and indoor businesses for the sake of public health during the pandemic. A business could get a maximum grant of $15,000 if it has been partially closed or $20,000 if it is fully closed in accordance with state coronavirus restrictions.

West Michigan economic development officials say they helped recruit or retain 953 jobs to the region in 2020. That’s even as the area lost about 40,000 jobs overall.

The Right Place, Inc. presented its annual update and forecast on Thursday. The economic development group says it secured $105.6 million in new capital investment for the region this year. It highlighted a decision by Perrigo to locate its new North American headquarters in downtown Grand Rapids, a move that's expected to bring 170 jobs downtown.

President Donald Trump’s signing of the PPP Flexibility Act on Friday doesn’t immediately answer all the questions about loan forgiveness small business owners and their advocates have been asking for weeks.  

The unemployment rate is rising because people are losing their jobs due to the COVID-19 pandemic. But, there are new jobs opening up.

Retailers Wal-Mart and Amazon are looking for temporary workers. Fast food delivery services are hiring. Some pharmacies and medical supply companies need workers. Big chain supermarkets need people to keep the shelves stocked. In some cases small businesses are hiring too.

The Michigan economy will continue to grow – but at a modest pace that won’t match the national economy’s growth rate. That determination comes from economists and state budget officials.

They met Friday at the state Capitol. Their job is to agree on revenue numbers that Governor Gretchen Whitmer and state lawmakers will use to put together the next state budget.

One index of the Midwest economy is showing its lowest reading in a decade.

The Midwest Economy Index tracks 129 indicators in five states: Michigan, Indiana, Illinois, Iowa and Wisconsin. It’s released by the Chicago office of the Federal Reserve each month.

The reading for November was at -0.48, the lowest it’s been since 2009.

There won’t be a national recession in the next couple of years, and Michigan should see some moderate job growth, continued low unemployment, and even a rise in local incomes. At least, that’s what economists from the University of Michigan are predicting in their big 2020 forecast, which they presented to Lansing in November.

Governor Gretchen Whitmer says Michigan will change its labor rules to ensure almost 200,000 salaried workers become eligible for overtime pay. Her plan would make Michigan’s overtime rule more generous than the federal standard.

A recession may be on the way in the U.S. - and it may already have arrived in Michigan.

Charles Ballard is an economist at Michigan State University.

He says there has been essentially no job growth in Michigan in the first half of 2019.

About 7,000 Michigan workers went through a layoff in 2018, according to data from the state. That number was about the same as in 2017.

The list doesn’t include everyone who lost a job for the year. And, overall, the state gained more jobs than it lost in 2018.

Economists are predicting Michigan’s economy will slow down in 2019.

Charles Ballard is an economist at Michigan State University. He says there are growing signs that the U.S. economy could be headed toward a recession.

“I’m not painting a picture that this is going to be 2009 all over again,” says Ballard. “But I do think caution would be warranted when we look forward to 2019.”

Ballard is concerned auto sales have plateaued. He does expect continued growth in Michigan’s health care and tourism industries.

The Next Idea

West Michigan is one of the most economically healthy regions in our state. It’s been cited as the fifth fastest-growing city in the country.

By digging into what’s made West Michigan such a good place for businesses to take root and grow, other communities might find something to learn.

What happens to the state’s economy when 600,000 more Michiganders get health insurance, thanks to the state’s Medicaid expansion – AKA the Health Michigan plan that’s part of the Affordable Care Act?

According to Dr. John Ayanian, professor and director of the Institute of Healthy Policy and Innovation the University of Michigan, you get about 30,000 new jobs a year.

The economy. It’s an election issue, a global issue, and, for most Americans, a personal issue.

Gaging how well the economy is doing can be very difficult for economists. Measuring economic success on the national level relies on the stock market, unemployment numbers, and wage growth.

But these measurements don’t always represent how Americans feel about the economy on a personal level.

To find out how people are feeling on a personal level, Marketplace and Edison Research have teamed up to develop the “Economic Anxiety Index.”