Lansing-East Lansing 2020 Economic Outlook
The Lansing-East Lansing Metropolitan Area (defined as the three counties of Clinton, Eaton and Ingham) is expected to fare somewhat better than the state in terms of economic and employment growth due to it’s favorable mix of sectors that is heavy on government. Expect 2019 to add 2.6 percent to metropolitan-level gross state product and 2.3 percent in 2020. In real terms (adjusted for inflation), this means no change. This lack of change is also reflected in employment numbers, where 2020 is expected to see less than 2,000 new jobs added to payrolls. About 720 of those jobs will be shed from manufacturing sectors, while growth in service sectors and government will more than offset. Despite job gains, we expect the metropolitan area to exhibit an increase in overall unemployment. Where 2019 projection is for an unemployment rate of 3.4 percent, 2020 will see a marginal increase to 3.7 percent, mostly due to additions to the labor market.
With such a tight labor market, Lansing-East Lansing is expected to see some wage movement. Keeping up with the state, 2019 projections on wage and salaries growth is about 2.6. This goes up to 3.1 in 2020 – on par with overall personal income growth. However, even with this level of growth, the metropolitan area's per-capita income growth is till not keeping pace with the nation.
Updated December 6, 2019