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Faster job growth, increased income forecasted for city of Detroit through 2024

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Posted at 10:11 AM, Feb 10, 2020
and last updated 2020-02-10 10:11:02-05

DETROIT (WXYZ) — The first forecast for the city of Detroit, released by the city and the University of Michigan, showed gains in household income, employement and labor force participation through 2024.

The forecast reports a 1.7 percent growth rate in employment for 2019,

UM economist Donald Grimes said labor force participation is expected to rice from 48.5 percent from 47.3 percent between 2018 and 2024. Grimes says new job opportunities are created from developments like the FCA Mack Avenue plant and Gordie Howe International Bridge.

"Bringing new jobs to Detroit and filling them with Detroiters has been a cornerstone of the mayor's economic development strategy," said David Massaron, chief financial officer for the city of Detroit, in a press release. "This independent forecast validates that strategy as we work to ensure Detroiters have opportunities for good jobs."

The forecast was produced by economists at UM's Research Seminar in Quantitative Economics, part of the partnership with Detroit and economists at Michigan State and Wayne State universities.

Per the forecast, the city's unemployment rate is expected to continue to fall from 18.7 percent in July 2013, when the city filed for bankruptcy, to 8.6 percent in 2019, and to 7.9 percent by 2023 and 2024.

"Detroit has vastly improved its financial position and prepared for any future financial hiccups by doubling its rainy day fund," said UM economist Daniil Manaenkov. "Despite that progress, Detroit's economy continues to face well-known challenges, including an elevated poverty rate and relatively low educational attainment among its residents."

View the full forecast here.