The Chamber explored this complex relationship between consumers’ negative economic perceptions and their behaviors in its eighth annual State of the Region report, as well as the ongoing economic impact of the COVID-19 pandemic on employment, consumer confidence, industry sectors, and more.
In a recent Chamber poll of registered Michigan voters, 63% of respondents say they believe the economy is on the wrong track, and 90% reported concerns about inflation. However, 74% indicate they are economically better off or about the same as they were pre-pandemic, and consumer spending on goods is up 24% since 2019.
“The economy bottomed out in spring of 2020, but it has shown surprising resilience and strength, literally, just right after bottoming out,” said Sandy K. Baruah, president and chief executive officer at the Chamber. “And what’s surprising is that, unlike other past economic crises, Michigan is more than keeping up with the national peers. In fact, Michigan is at least holding its own, if not doing better, in terms of keeping up with the national recovery, which is quite strong.” Positive trends that show Michigan’s resilience through COVID-19 include:- Michigan’s economy ranks No. 1 among 37 states with a population of two million or more, according to a .
- Income and wages have risen since the start of the pandemic, including in lower-paying sectors, such as hospitality, which saw a 13.4% increase since January 2021.
- The unemployment rate in Michigan is at pre-pandemic levels, measuring at 4.3% in December 2021.
- There was a 41% increase in job postings in 2021, despite an overall 2.6% decrease in private sector jobs since February 2020.
- New business applications in Michigan hit a record high in 2021.
- Private sector jobs recovered quickly but remain lower than pre-pandemic levels.
- Labor force participation in Michigan peaked in 2000 at 69% and fell to 60% in December 2021, resulting in Michigan ranking 40th among all states.
- In 2021, there were 33% more resignations than in 2020. According to Baruah, there were almost 160,000 people who voluntarily resigned, which was a record high.