The economy is growing in Detroit, Michigan as the city sees gains in employment wages. Plus seeing drops in joblessness which are expecting to continue the next several years. This is according to a University of Michigan study which was releasing Friday.
Economy and Unparalled Downturn
The city “has shown resilience in the face of an unprecedented downturn” amid the COVID-19 pandemic, says the Detroit Economic Outlook for 2021-26.
“In fact, we have really been encouraging by the data which shows Detroit’s ongoing recovery,” said Gabriel Ehrlich, director of UM’s Research Seminar in Quantitative Economics and the lead author of the forecast. “Moreover, the pandemic has created important challenges for our nation’s large cities, though we do expect Detroit to recover its pandemic job losses within the next year and then continue to grow from there.”
Unemployment Rate
Also, the study does estimate the city’s unemployment rate has dropped from about 22% in 2020 to 10% last year. Also, Ehrlich and his colleagues think the rate for 2021 is going to be revising upward but project the jobless rate will, in fact, drop below 10% this spring.
Moreover, they forecast the rate to be 8.7% in 2023. It is below the pre-pandemic level. Then poised to stay near that level through 2026.
However, much of the employment gains are going to come from blue-collar jobs. This would be construction and manufacturing. Also, service industry jobs are going to will return approximately to pre-pandemic levels by 2026, the report predicts.
In 2020, the average wage rate in the city did rise to 9.4% amind service jobs layoffs. Yet it fell 2.2% in 2021. This occurred as lower-wage workers did return. Moreover, the study did estimate. Also, Detroit’s average wage rate did rise 4.1% in 2022. Then 3.6% in 2023 and roughly about 3% annually from 2024-26. It had faster growth than Michigan overall.
“Also, our forecast does envision more Detroit residents working, and more Detroit residents who are willing and able to work in 2026 than there were before the COVID-19 pandemic,” the researchers wrote.
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