Lansing-East Lansing

Lansing-East Lansing 2024 Economic Outlook

While we painted an overall rosy picture for the state’s economy, the Lansing area picture may be a bit rosier. Overall, Lansing employment growth is expected to exceed that of the state for both 2023 and 2024, with year over year gains of 3.5 and 2.3 percent, respectively. Much of that growth is expected to be led by vehicle manufacturing. Accordingly, the state of UAW negotiations is important to Lansing’s growth projections. As many first and second-tier suppliers of the auto industry operate out of Lansing, much is riding on the negotiations. One of the challenges that Lansing area businesses will have to deal with is the continued tightening labor market for the area. Employment growth is expected to exceed labor force growth through 2024. Continued labor shortages are expected to reduce the overall unemployment rate to 3.7 percent for both 2023 and 2023.

Expect the Lansing area economy to propel regional gross state product growth. We project that nominal growth in GSP be about 4.6 percent. However, once accounting for inflation, real growth in GSP is expected to decline by about 1.4 percent in 2023. As GSP growth in 2024 is expected to weaken, inflations are expected also expected to come down. Accordingly, we anticipate no significant change in inflation adjusted GSP in 2024. Finally, personal income is expected to decline in 2023, mostly because of reduced government transfer payments to households. That is expected to reverse in 2024.

Updated October 4, 2023