UPPER PENINSULA of Michigan

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UPPER PENINSULAof Michigan
An Economic Profile
Presented by MDCD Office of Labor Market
Information
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Industry Profile

• Upper Peninsula

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Three Industries Account For 3 Out of 4 Upper
Peninsula Jobs
UP - 2001
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More Government Less Services and Manufacturing
U.P. Michigan Government 30
15 Services 21 28 Retail Trade 20
19 Manufacturing 12 20 Fin, Insur, Real
Est 3 5 Wholesale Trade 3
5 Constr/Mining 7 4 Trans, Comm, Util
4 4
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Most Upper Peninsula Firms Have Fewer Than 50
Workers
Percent Distribution
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Small and Medium Firms Account For Significant
Share of U.P. Jobs
Percent Distribution
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Over 18,000 Payroll Jobs Added During Ten Year
Period
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Local Government Leads U.P. Job Expansion
Number of jobs (in thousands) added 1991 - 2001
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2001 Recession Impacts Durable Goods
Manufacturing
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Gain in U.P.s Service Sector Offsets
Goods-Producing Job Loss
First and Second Quarter 2002 vs. 2001
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Upper Peninsula Economy Outperforms State in
First Half of 2002
First and Second Quarter 2002 vs. 2001
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U.P. Employment Growth Outperforms State
UP employment growth
Number of jobs if UP grew at state rate
13

Average Weekly Wage
U.P. 2000
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Upper Peninsula Real WagesFlat in 2001
Adjusted for inflation
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Employment Gains Forecast In Most Upper Peninsula
Industries
Outlook 2008
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Upper Peninsula Industry Highlights

• Major industry sectors include government,
  services and trade
• Relatively higher government employment, lower
  manufacturing employment
• Small and medium firms provide the majority of
  employment
• Recent job growth outperforms state
• When adjusted for inflation, average weekly wage
  growth has been stagnant

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Labor Force
Upper Peninsula
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Upper Peninsula Labor Force Experiences Growth
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Regional Employment Peaks in 2000
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Employment Growth Fastest in Eastern U.P.
1991 2001 Percent Change
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U.P. Unemployment Jumps to Highest Level Since
1997
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Increase in U.P.s Unemployed Less Than Metro
Areas
First and Second Quarter 2002 vs. 2001
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Sharp Rise in Michigan Unemployment Insurance
Claimants in 2001
March 2001 - Recession Begins
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U. P. Trend Similar to Michigan

• 2000 jobless rate in Upper Peninsula lowest in
  30 years
• Local jobless rate consistently above state
  average

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Unemployment Rates Continue to Rise in 2002
2000
2001
2002

• Seasonal pattern evident in U.P. unemployment

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Upper PeninsulaLabor Force Highlights

• Labor force expanding since 1991
• Employment growth slower than statewide
• Unemployment in Upper Peninsula more seasonal
  than state and nation
• 2002 jobless rates are higher than 2001
• Recent increase in unemployed persons less than
  all areas
• Rate of increase in unemployment insurance
  claimants less than statewide

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Population
Upper Peninsula
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Over Half of Upper Peninsulas Residents Reside
in Central U.P.
2000 Census
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Upper Peninsula Population Gains Marginal Despite
East U.P. Growth
2000 Census
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Upper Peninsula Growth Rate Influenced by
Institutional Population
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Median Age of U.P. Residents Well Above Michigan
2000 Census
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Upper Peninsula Youth Population Shrinks
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Working Age Population Growing Older in Upper
Peninsula
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Upper Peninsula Population More Educated Since
1990
2000 Census
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Fewer Upper Peninsula ResidentsWith Advanced
Education

• Smaller proportion of U.P. population with
  education beyond high school
• Higher average age in U.P. than statewide
• Smaller share of U.P. jobs require degree beyond
  high school

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Upper PeninsulaPopulation Highlights

• Population growing slowly
• May limit long term economic growth
• Youth population shrinking
• Aging population
• More retirees, greater need for senior services
• Population better educated since 1990

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Upper Peninsula Summary

• Ten-year job growth slower than statewide
• Declining real wages
• Impact of recession softer than statewide
• Higher employment growth rate
• Increase in unemployment insurance claimants less
• Jobless rate higher, more seasonal than Mich.
• Aging workforce and shrinking youth population

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Office of Labor Market InformationHow to Obtain
Information

• Website
• www.michlmi.org
• Detroit Labor Market Analysis Section
• Telephone [phone]
• Regional Labor Market Analyst

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Upper Peninsula Regional Analyst

• Kathleen Salow
• 1498 ODovero Drive, Marquette, MI 49855
• Telephone [phone]
• Fax [phone]
• E-Mail ksalow_at_up.net

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UPPER PENINSULAof Michigan
An Economic Profile
Presented by MDCD Office of Labor Market
Information