Lansing-East Lansing 2023 Economic Outlook
The Lansing area economy is expected to show respectable growth in regional income in 2022 and that is expected to continue through 2023. While tepid in comparison with the state, the Lansing area economic output is expected to keep pace with the nation in the foreseeable future. Anticipate Gross state production growth of 5.8 percent in 2023, or 1.8 percent growth in inflation-adjusted figures. Personal income growth is expected to reach 5.5 percent annualized growth in 2023 with sizable contributions of wage and salary disbursement growth. We anticipate that per capita personal income will gain 5.4 percent over 2022, but only gain 1.3 percent in real terms, once netting out inflation.
Lansing’s employment growth in 2022 strongly favored goods producing, particularly manufacturing jobs, where the region is expected to add 1,300 jobs in 2022. This is expected to slow slightly in 2023 with 830 new manufacturing jobs. Service job growth is expected to trail manufacturing job growth in 2023. We project 2022 will end with just under 7,000 new service sector jobs and slightly less growth in 2023. Like we saw for the state, leisure and hospitality job growth led in 2022 and is expected to be a significant source of growth in 2023. Professional and business services job growth remains strong in this region, expecting to end 2022 with 11.3 percent growth and 2023 with 7.4 percent growth. Relatively weak segments include information services and financial activities.
Updated January 1, 2023