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Michigan Initiatives brings you coverage of the latest news and events mounting the next great surge in state economic development. Through this coverage, MI will provide some imperative "connective tissue" between employers, business coalitions, economic development groups, academic institutions and government officials. By reporting on the robust efforts of these individuals and organizations, MI hopes to enhance and accelerate the pace of change toward new heights in prosperity and quality of life in our state.

Wednesday, March 24, 2010

Employment forecast: it's all relative

West Michigan job growth for the remainder of 2010 into 2011 isn't likely to send the region's economic hopes soaring, but 2009 proved things can always be worse.

New analysis from economists at the W.E. Upjohn Institute (http://www.upjohninst.org/) projects regional gross domestic product will rise 2.4% in 2010 and then 3.1% in 2011.

"It's a forecast that, like most, generates only modest employment growth during 2010," according to the March issue of the Institute's Business Outlook. Specifically, employment for the region's six metropolitan areas (Battle Creek, Grand Rapids, Holland-Grand Haven, Kalamazoo, Muskegon and Niles-Benton Harbor) is predicted to be down 1.5% from 2009, then up slightly, .2%, in 2011.

Employment in the region's struggling goods-producing sector is expected to drop 3.4%. Auto suppliers continue to cut workers in line with lower production volumes, and the region's office furniture industry is also expected to have a slow year. New manufacturing orders are likely to be filled by increases in productivity and overtime hours, and the use of temp workers.

Economists expect employment in the region's service providing sector to drop 1.2% in 2010.

"Growth is expected in health care fields and professional and business services, which will help buffer expected losses in both the trade/leisure and hospitality sectors," according to the Outlook.

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