University of Michigan economists expect jobs burst this year

| Monday, April 4, 2011
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Michigan is expected to gain 64,600 jobs this year, according to a University of Michigan forecast released today. That's more than 10 times the number (6,300) that U-M economists George Fulton, Joan Crary and Don Grimes predicted in November.

Chalk it up to a boost in auto sales plus a stronger than expected recovery in the manufacturing sector and overall state economy.

Many of those jobs likely have already been created. Fulton said jobs grew at a 3.8 percent annual rate in the first quarter of this year. Job growth is expected to slow to 0.8 percent in the second quarter and then rise 1.1 percent in the final six months of the year, according to the U-M forecast

Michigan is expected to add another 61,500 jobs in 2012, slightly fewer than this year, but 13,500 more than in the November U-M forecast.

The number of jobs added through 2012 is expected to be double the number Gov. Rick Snyder used in developing his budget plan.

In a separate forecast, Center for Automotive Research chief economist Sean McAlinden has predicted Michigan will add 44,900 auto jobs this year and next. But about 2,200 auto jobs are expected to be lost in 2013 as sales growth levels off.

And in other job-related news, the McDonald's fast-food chain said it will hire 50,000 workers nationwide on just one day--April 19. The jobs pay $8.30 an hour, but restaurant managers can earn $50,000 a year.


Michigan League said...

Rick, Great post! Do you know if Gov. Snyder's tax proposals were part of this projection? Or are they saying that will happen even if we don't end the "jobs killing" MBT? -- Judy Putnam

Rick Haglund said...

Judy: George Fulton says his jobs forecast for this year and next assumes the current tax structure stays in place.

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