THE MICHIG AN ECONOMY
1989–2 002
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TABLE OF CONTENTS
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MICHIGAN’S POPULATION
Population in Millions 1992–2001
Population By Age 1990 vs. 2000
6 | HIGH-TECH EMPLOYMENT/RESEARCH &
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DEVELOPMENT IN MICHIGAN
Funding for Industrial Research and Development 1999
Total R&D Funding 1987–1999
Total Employment in High-Tech Industries 2000
Total High-Tech Occupational Employment 2001
2 | ECONOMIC CLIMATE IN MICHIGAN
Employment Growth 1992–2001
Major Employment Sector Share of Total Employment
Unemployment Rates 1978–2002
U.S. Top Producing States (Cars and Trucks) 2001
U.S. Top Car Producing States 2001
U.S. Top Light Truck Producing States 2001
U.S. Gross Domestic Product and Michigan
Gross State Product 1991–2000
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VENTURE CAPITAL IN MICHIGAN
Venture Capital Invested by Industry 2001
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Venture Capital Investments Michigan and U.S. 1996–2002 7-1
8 | MICHIGAN’S EXPORTS
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Exports by Country 2001
Top 10 Export States 2001–2002
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3 | INCOME IN MICHIGAN
Per Capita Personal Income 1992–2001
Michigan and U.S. Earnings Per Job 1992–2001
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INFLATION (CPI) IN MICHIGAN
Annual Inflation Rate, Michigan and
U.S. Percent Change 1993–2001
9 | MICHIGAN’S METROPOLITAN AREAS
MSA Per Capita Personal Income Growth 1992–2000
MSA Unemployment Rates 2001
MSA Employment Growth 1992–2001
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5 | MICHIGAN’S NEW AND EXPANDED
FACILITIES RANKING
New Business Investment 1999–2001
Total Capital Investment 2001
New and Expanded Facilities Ranking 1991–2002
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THE MICHIGAN ECONOMY 1989–2002 | Table of Contents
MICHIGAN’S POPULATION
 Michigan’s population grew by 5.5% from 1992 to 2001.
 Michigan’s median age increased from 32.9 in 1990 to 35.3 in 2000.
Michigan ranks 8 th in the U.S. in total population, accounting for
3.5% of the U.S. population in the 2000 Census.
The population of 25–34 year olds has decreased by 7.6% nationwide from 1990–2000. Michigan’s decrease during this period was
13.5% . This demographic group is especially important because of its
contribution to the workforce.
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 Michigan ranks 39th in growth between 1990 and 2000.
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THE MICHIGAN ECONOMY 1989–2002 | Michigan's Population | 1-1
ECONOMIC CLIMATE IN MICHIGAN
From 1992 to 2001, Michigan employment grew by 16.8% , compared
to national employment growth of 22.3% .
Between 1992 and 2001 employment in the services* sector increased
by 32.7% , while all other sectors decreased.
Michigan’s employment peaked in 2000 with 4,674,000 workers.
From 1992 to 2001, the gap between the employment in the services
and the manufacturing sectors widened by 310%.
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Over this period, the greatest employment growth occurred in the
service sector. Manufacturing as a whole lost jobs; however, there were
segments within manufacturing that gained employment, including
furniture and fixtures, industrial machinery and equipment, and rubber
and miscellaneous plastics products.
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*Services include establishments primarily engaged in providing a wide variety of services for
individuals, business and government establishments and other organizations. Hotels and other
lodging places; establishments providing personal, business, repair and amusement services;
health, legal, engineering and other professional services; educational institutions; membership
organizations, and other miscellaneous services are included.
During the recession years of the early eighties and nineties, Michigan’s unemployment rate exceeded the national average by as much as
5.8 percentage points. From November 2000 through November 2001, Michigan’s annualized unemployment rate was only 0.4% higher than the
national average.
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THE MICHIGAN ECONOMY 1989–2002 | Economic Climate in Michigan | 2-1
ECONOMIC CLIMATE IN MICHIGAN
 In 2001 Michigan claimed 34.1% of U.S. Car Production, up from 33.3%
in 2000.
 Michigan ranked #1 in 2001 U.S. Production with 1,664,374 Cars.
Ohio, Illinois Kentucky and Tennessee ranked 2nd through 5th.
 In 2001 Michigan accounted for 15.6% of U.S. Truck Production.
 In 2001 Michigan ranked #2, producing 1,023,173 light trucks in U.S.
Truck Production. Missouri ranked #1, Kentucky, Ohio and Indiana
ranked 3 rd through 5 th.
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THE MICHIGAN ECONOMY 1989–2002 | Economic Climate in Michigan | 2-2
ECONOMIC CLIMATE IN MICHIGAN
 Gross State Product (GSP) is the value added to production by the
labor and property located in a state. GSP is often considered the state
counterpart of the nation’s gross domestic product (GDP), which is the
commonly used measure of U.S. output.
 Michigan GSP grew by 67.5% from 1991 to 2000, while the U.S. GDP
grew by 64.1% during the same period.
Michigan’s annual GSP growth rate during this decade peaked in
1994 at 10.7% .
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THE MICHIGAN ECONOMY 1989–2002 | Economic Climate in Michigan | 2-3
INCOME IN MICHIGAN
Personal Income in Michigan increased at an annual average rate of
5.2% between 1992–2001.
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Michigan’s earnings per job for 2001 averaged $38,176. Workers
in Michigan, on average, earned $919, or 2.5% more than the average
U.S. worker.
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From 1992 to 2001, Michigan earnings per job grew by an average of
3.6% per year. U.S. earnings per job grew at an annual average rate of
3.9% during that period.
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Michigan’s earnings per job have remained above the U.S. average
since 1989.
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THE MICHIGAN ECONOMY 1989–2002 | Income in Michigan | 3-1
INFLATION IN MICHIGAN
 Consumer price index (CPI) is the measure of the average change in
prices over time of goods and services purchased by households. While
there appears to be sharp fluctuations in the annual percentage change
in CPI, in fact the value ranges from 1.5% to 3.5% during this period.
 From 1992–2001 the Michigan annual average change in CPI is 2.8% ,
compared to 2.6% for the U.S. Despite faster growth in CPI, Michigan’s
CPI remains below the U.S. average.
 Michigan’s low cost of living, combined with a high average wage,
provides the opportunity for Michigan residents to have higher disposable income.
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THE MICHIGAN ECONOMY 1989–2002 | Inflation in Michigan | 4-1
MICHIGAN'S NEW AND EXPANDED FACILITIES RANKING
NEW AND EXPANDED FACILITIES RANKING
YEAR
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
R ANK
22
22
15
23
7
6
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1
1
1
1
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 Michigan ranked #1 for new and expanded facilities for five straight years.  Michigan ranked #2 in total capital investment per one million
population in 2001.  Michigan led the country in both manufacturing and non-manufacturing new business investment from 1999–2001.  Detroit
ranked #1 Metropolitan Area in 1998, 1999, 2000 ; #2 in 2001.  In 2002, Michigan ranked #2 for new and expanded facilities. Illinois ranked #1 with
835 new and expanded facilities, only three more than the state of Michigan.
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THE MICHIGAN ECONOMY 1989–2002 | Michigan's New and Expanded Facilities Ranking | 5-1
HIGH-TECH EMPLOYMENT/RESEARCH & DEVELOPMENT
IN MICHIGAN
 In 1999, Michigan ranked # 2 in the U.S. in total private R&D spending.
 Among the top ten states in R&D investment, Michigan ranks #1 in
Michigan’s high ranking is due in large part to the auto industry.
per capita R&D investment.
 In 2000, Michigan ranked #1 in R&D intensity (R&D/GSP), according
to the National Science Foundation. Michigan’s ratio of total R&D to
gross state product was 5.81% , more than double the U.S. ratio of 2.69% .
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THE MICHIGAN ECONOMY 1989–2002 | High-Tech Employment/Research & Development in Michigan | 6-1
HIGH-TECH EMPLOYMENT/RESEARCH & DEVELOPMENT
IN MICHIGAN
Michigan ranks 4th in total employment in high-tech industries as
defined by the U.S. Bureau of Labor Statistics, surpassing States normally perceived as high-tech including Massachusetts, Illinois, North
Carolina, and Georgia.
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 Employment in high-tech industries accounts for 5.3% of Michigan’s
total workforce; Michigan exceeds the U.S. average of 4.4% .
 Of the top ten states in high-tech occupational employment, Michigan
 Illinois, Ohio, and Michigan are the only three Midwest states to rank
ranked third in growth (13.8%) from 1998–2001, behind California and
New Jersey.
in the top ten for high-tech occupational employment. From 1998–2001,
Michigan was the only top ten midwestern state to experience a positive
growth in high-tech occupational employment.
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THE MICHIGAN ECONOMY 1989–2002 | High-Tech Employment/Research & Development in Michigan | 6-2
VENTURE CAPITAL IN MICHIGAN
 Venture Capital (VC) investments in Michigan follow a national
trend, peaking in 2000.
Software, Industrial, and Biotechnology firms continue to attract
the most investment capital.
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 Four new VC funds started operations in Michigan in 2002 .
 In 2002, there were $2.5 billion in Venture Capital funds under
management in Michigan.
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THE MICHIGAN ECONOMY 1989–2002 | Venture Capital in Michigan | 7-1
MICHIGAN’S EXPORTS
Michigan ranks fourth among U.S. states in exports behind California,
Texas and New York. In 2001 Michigan accounted for 6.9% of U.S. exports.
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 Canada and Mexico accounted for nearly three-fourths of Michigan
exports in 2001. In contrast, the NAFTA partner countries accounted for
only 36.3% of overall U.S. exports. Similarly, while exports to European
Union nations comprised 10.5% of Michigan exports, they accounted
for 21.8% of overall U.S. exports.
 Between 1993 and 2001, Michigan exports nearly doubled, increasing
99.8% compared with a 57.3% increase nationally.
Michigan’s top exports by industry include: Motor Vehicles and
Parts (43.8%); Industrial Machinery, Computers (20.7%); Electronics
(5.6%); Plastics (3.7%); Furniture (3.4%); Instruments, Optics (2.8%);
Chemicals (1.9%); Fabricated Metal Products (1.5%); Glass, Glassware
(1.2%) and Other (15.4%).
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THE MICHIGAN ECONOMY 1989–2002 | Michigan's Exports | 8-1
MICHIGAN’S METROPOLITAN AREAS
Michigan’s per capita personal income growth from 1992–2000 was 43.8% .  The Ann Arbor MSA experienced a 49.7% rate of per capita
growth, the highest in the state.  The Upper Peninsula experienced a 29.5% per capita growth, the lowest in the state.
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*Metropolitan Statistical Areas (MSAs) as defined by the U.S. Census Bureau, consist of a large population nucleus, having a high degree of social and economic integration with that area. MSAs are
used for the purpose of collecting, tabulating and publishing federal data.
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THE MICHIGAN ECONOMY 1989–2002 | Michigan's Metropolitan Areas | 9-1
MICHIGAN’S METROPOLITAN AREAS
 In 2001, Michigan experienced a relatively low unemployment rate of 5.3% . The U.S. unemployment rate was 4.8% .  Michigan had five MSA
regions that were less or equal to the U.S. unemployment rate of 4.8% and six MSA regions that were less than the Michigan unemployment rate
of 5.3% .
*Metropolitan Statistical Areas (MSAs) as defined by the U.S. Census Bureau, consist of a large population nucleus, having a high degree of social and economic integration with that area. MSAs are
used for the purpose of collecting, tabulating and publishing federal data.
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THE MICHIGAN ECONOMY 1989–2002 | Michigan's Metropolitan Areas | 9-2
MICHIGAN’S METROPOLITAN AREAS
 Michigan experienced growth in total employment of 16.8% from 1992–2001.  Each MSA experienced growth, with an overall average employment
growth of 14.8%.
*Metropolitan Statistical Areas (MSAs) as defined by the U.S. Census Bureau, consist of a large population nucleus, having a high degree of social and economic integration with that area. MSAs are
used for the purpose of collecting, tabulating and publishing federal data.
WWW.MICHIGAN.ORG
THE MICHIGAN ECONOMY 1989–2002 | Michigan's Metropolitan Areas | 9-3
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