Adjusted statistics show addition of $23 billion to residents' incomes over past three years
In another sign Michigan’s economy is on the rebound, the U.S. Bureau of Economic Analysis updated its reporting on the state's personal income growth over the past few years and found that Michigan's residents made billions more than previously stated.
The release showed that personal income in Michigan increased by 3.1 percent in the second quarter of 2013 from the second quarter of 2012, growing the 8th most among the states. The top six states for growth were right-to-work states (see image nearby).
Michigan's 2010, 2011, and 2012 personal income has been restated upwards by 2.3 percent, 2.1 percent and 2.1 percent, respectively. The adjustments showed an addition of $23 billion to the incomes of Michigan residents over those three years.
That's good news for Michigan's recovery, said James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy, who added that it’s not unusual for economic reports to be updated with more detailed data that replaces preliminary estimates.
"Michigan's recovery is real," Hohman said. "This is more evidence of it."
University of Michigan Economist Don Grimes said the upward revisions didn't surprise him because the federal government has been underestimating Michigan's employment growth for the past few years.
"The state of Michigan has done as well as could possibly be expected during the past few years," Grimes said in an email. "The question remains how well it will do in the future. The rebound in factory jobs in the auto industry is about done; we will hopefully continue to see growth in white collar employment in the auto industry. The key to Michigan's long-term employment and growth prospects will be tied to our ability to attract 'knowledge economy' jobs and the people who fill those jobs. I am hopeful, but the question remains unanswered."
Michigan's unemployment has crept up recently because more people are entering the labor force. Job growth has rebounded in the auto sectors of the economy, but non-auto manufacturing and other sectors have recovered better than in other states.