Michigan Losing the Fight for Jobs

Over the last few years, Michigan has had what some consider to be a crisis of economy. Loss of jobs have been created by outsourcing of major manufacturers while tax increases, cuts in education funding, crumbling roads and bridges, and decaying cities show that the state of Michigan is growing less able to compete for jobs as other states and nations get stronger.

In the 1990's, Michigan was rated as a leader in economic development. And it makes it more crucial than ever for government officials to focus on building a strong, diverse business climate. There are many key issues to consider, beginning with reform of the state's antiquated business tax system and potentially including steps to graduate more college students and keep them in the state.

Michigan's business climate has improved from what it was in the '80s, but Michigan still is a higher-tax state than a lot of the states we're competing with in the South and West and, of course, a much more expensive place to do business than Mexico or China or India.

In September, Michigan's jobless rate was 6.8 percent, 1.4 points above the national average. The state also lost another 6,000 manufacturing jobs in the month, bringing the total to nearly 200,000 in four years. Some analysts share the concern that Michigan's job and income growth are below national averages.

Workers are angry that Governor Granholm had hired more auditors to make sure the state is collecting all the tax money it can. The Department of Labor & Economic Growth, however, states Granholm and her Cabinet are doing everything possible to create a business-friendly environment.

Many of the jobs allowing blue and white-collar workers to be part of the middle class and adequately support their families have gone away and are never coming back. American unemployment remains very high, and the statistics do not adequately reflect discouraged and severely underemployed workers who struggle just to get by.

Despite slightly more promising job statistics in recent months, unemployment remains very high, and the statistics do not even begin to reflect the number of workers who have simply given up looking for a job, or who are severely underemployed compared to their previous job history and their personal economic needs.

As many as 79 percent of jobs are in industries where jobs have been lost forever, while the number of manufacturing jobs declined for more than 40 months in a row before recently rebounding slightly. By 2015, some 3.3 million service-sector jobs, representing $136 billion in wages, will be shipped overseas or rendered obsolete by technology. Twenty-six percent of jobs that require fewer skills, are automated or are highly portable, such as computer programming and software engineer jobs will be gone, while clerical jobs, financial research, data-entry and various administrative services also are vulnerable since their tasks are either becoming automated or can be performed by less-expensive workers somewhere else.

The White House release a report with new job figures stating, as of August 2003, more than 6.6 million jobs have been created. More jobs than all the other major industrialized countries combined. This is 810,000 more jobs than previously estimated. Our economy has now added jobs for 37 straight months.

So, it begs the question that if the economy is so improved, why is Michigan's unemployment rate 6.6%. Only surpassed by that of Alaska which is 7.7%. From Feb 2005 to Feb 2006 Michigan has lost 38,900 jobs. This year alone, Michigan has lost 10,000 jobs.

With the Gubernatorial elections right around the corner, Michigan jobs will be a highly debated issue. In current debates, Governor Granholm continues to "stay the course" feeding the Michigan public with stories of success that haven't been seen. She then goes on to request patience and that Michigan citizens will be "blown away" in 5 years.

Ms. Granholm may believe in her plan and believe that it will come to fruition in 5 years, but my thoughts lean towards wondering if her 5 year projection and pleading is only meant to ensure she retains her office. I am not sure that Michigan Citizens can afford to wait 5 more years before they are able to find decent paying jobs that allow them to support their families.