- Economic rankings for metro Detroit show the region sliding compared to 19 other US cities
- The Detroit Regional Chamber says the data should prompt urgency among policy-makers
- The area ranked last for per capita income, coming in a full one-third less than first-place Austin, Texas
Metro Detroit’s economy is falling behind peers and ranks near the bottom in factors from income to education, according to a new report from the Detroit Regional Chamber.
Released Wednesday, the chamber’s State of the Region analysis should be a call-to-arms for policymakers and office seekers about “hard truths” facing the region, Chamber CEO Sandy Baruah said.
“We can do a lot better,” he said. “And frankly, we need to do a lot better.”
When comparing metro Detroit to 19 areas with similar population sizes, economies and aspirations across the US, the report found the region:
- 20th on per capita income, $42,100 compared to first-place Austin at $60,900
- 19th on gross domestic product per capita, $6,400 compared to just over twice that for first-place San Francisco
- 18th on educational attainment, with 47% of the population completing a higher education program. The top three regions topped 60%
- 17th on population growth, with 0.2% gain compared to up to 3% elsewhere.
The state also ranked 19th in labor force participation rate, with about 63% of eligible workers holding or seeking jobs. The rate tops 70% in Denver, Austin and Nashville, the report notes.
“This is a terrible, terrible number,” Baruah said of the regional rate.
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The new report follows a chamber survey released in February showing the disparity between Michigan’s lackluster economic performance and residents’ impressions of it.
For example, public perception is that Michigan ranks 28th in the US in attracting high-tech jobs. In fact, the state is 45th. Residents believe we’re middle-of-the-pack in per capita income. In fact, Michigan is 40th in the nation.
The Detroit region accounts for half of Michigan’s economic activity, generating $280 billion in GDP in 2024 when the entire state totaled $566 billion.
Recognizing the economic power of the region as well as its slide when compared to similar areas is of particular importance during this election year, the chamber said in releasing the report.
“Voters and elected officials need to acknowledge the reality of where we stand and how precipitous the declines have been,” Baruah said in the report.
“Reversing this trajectory will require shared recognition of our struggles,” he added, prompting “data-based collective action.”
Baruah emphasized that the region has what he called the building blocks for success, pointing to regional innovation investment and momentum in new startups.
“Progress is about being honest with ourselves,” Citizens Bank Michigan President Yasmeen Jasey.
She continued: “The report should not be a verdict, but a catalyst.”
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