Michigan ranks 27th in the nation for the overall economic prosperity of the state and its people, according to Business Leaders For Michigan’s 2024 Benchmarking Report released today.
The results of the report reflect recent gains in workforce participation, modest GDP growth, and ongoing strength in business creation but underscore that “significant work” remains to improve drivers of growth in population, household income, educational attainment, and talent attraction for Michigan to be competitive with top states.
“Michigan’s progress is encouraging and is something we can see and feel in communities around our state,” says Jeff Donofrio, president and CEO of Business Leaders For Michigan. “To reach Top 10 though, we’ll need to focus on growth in population, high-wage job creation, and education attainment.
“Top 10 states are magnets for jobs and people and make it easy for entrepreneurs to start and grow businesses. To move from the middle to the top, we need to accelerate efforts to attract and retain talent, improve education, foster the innovation economy, and provide a competitive business climate.”
The Top 10 states are:
- Utah
- Colorado
- New Jersey
- Texas
- Florida
- North Carolina
- Washington
- Virginia
- Arizona
- Connecticut
Since 2009, when Michigan was ranked 49th, Business Leaders For Michigan says it has worked with a coalition to improve the state’s competitiveness and make it a Top 10 state.
Achievements — such as enhancing economic development tools, expanding access to postsecondary education and career pathways, and establishing stable growth policies — have built what the organization calls a strong foundation for job creation and growth.
The 2024 report tracks eight key metrics to measure the state’s current standing and growth for economic health, competitive position, and how well Michiganders are faring compared to residents in other states. The organization updated the formula this year to incorporate benchmarks for business competitiveness and population growth. Michigan is ranked 27th overall, up from 31st in the last published report in 2022.
The Great Lakes States is ranked 10th in the Population category, 11th in Business Creation, 24th in Business Climate, and 33rd in Labor Force Participation Rate. It’s four lowest categories are Median Household Income (35), Percent of Population with a Higher-Education Degree or Certificate (35), GDP Per Capita (36), and Poverty Rate (38).
According to the report, if Michigan were performing like a Top 10 state, the impact on its residents would be “transformative:”
- Each household would see an increase of $6,400 in annual purchasing power — enough to cover a year’s worth of groceries for the average family.
- The state’s talent pool would include 325,000 more individuals with a degree or certificate, equivalent to the entire populations of Grand Rapids and Warren combined.
- About 239,000 fewer Michiganders would be living in poverty — providing financial stability to enough residents to fill Ford Field nearly three-and-a-half times over.
Achieving a Top 10 ranking, according to the report, requires a sustained focus on “holistic strategies that encourage investment, support entrepreneurship, foster growth across diverse industries, ensure Michigan’s talent is a differentiator, and make it easier and more predictable to do business in the state.”
Leading states employ consistent strategies to drive growth over decades and across terms of office.
Business Leaders For Michigan’s reports, including the Compete to Win Plan, Holistic Economic Development Framework and the Community College Report, offer strategies to build a resilient, high-wage economy and skilled talent pool for Michigan’s future. Meaningful K-12 solutions are outlined in the Launch Michigan Framework, and the Growing Michigan Together Council recommendations.
“Creating a future where every Michigander has a clear path to prosperity requires bold leadership and unified effort,” Donforio says. “It’s up to all of us to ignite change and make Michigan a Top 10 state through the opportunities we create, the progress we achieve, and the lives that will be transformed.”
To download the full report, visit here.
