University of Michigan economists project slower job growth at state's revenue conference
University of Michigan economists are predicting job growth in Michigan will slow this year as the economy adjusts to consumers having less money to spend, The Detroit News reported.
George Fulton, director of U-M's Research Seminar in Quantitative Economics, is among the economists who presented their economic forecasts Friday morning at the state's revenue-estimating conference used by Gov. Rick Snyder and lawmakers to determine the annual state budget.
George Fulton
Angela J. Cesere | AnnArbor.com file photo
Read the report from The Detroit News.
MLive.com reported on Friday the forecasts show Michigan should replenish nearly 40 percent of the jobs cut during the "lost decade" by 2014. More people are expected to buy cars, homes and services that will lead to moderate growth in jobs and personal income as the state enters its fourth year of economic recovery from nearly a decade-long recession, MLive.com reported.
U-M economists project Michigan's unemployment rate will improve from 2012's 8.9 percent to 8.6 percent in 2013, 7.9 percent in 2014 and 7.2 percent in 2015. MLive.com reported the House Fiscal Agency's forecast is the same, while the Senate Fiscal Agency expects 8.1 percent by 2015.
Snyder is expected to deliver his State of the State address on Wednesday. His annual budget message is expected to follow in February.
Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529. You also can follow him on Twitter or subscribe to AnnArbor.com's email newsletters.
Comments
leaguebus
Sun, Jan 13, 2013 : 12:30 a.m.
Contrary to their usual rhetoric, the state Republikans seem to be doing everything they can to scuttle the state economy. We have all seen that austerity and increasing taxes on individuals has pushed Europe into another recession, but somehow the Rickster and his merry band of Teabaggers missed this news. I assume he will not run in 2014 because once his middle class tax increases hit home this spring his approval rating will slide even lower.
Not from around here
Sun, Jan 13, 2013 : 6:21 p.m.
Or maybe we should just stop to the same level Instead of democrat we could just use Demonrat and instead of Obama we can just use Obummer or Odumbo? I'm sure annarbor.com will allow it since they allow tea-bagger, republkan, Rickster or Slickster? The previous poster has used similar terms for Rick Snyder and Republicans and that post hasn't been deleted?
Not from around here
Sun, Jan 13, 2013 : 6:17 p.m.
Are using Republikan to try and indicate that republican=Klu Kluk Klan? If so that is extremely offensive. Especially since the party of the Klan was the democrats. Maybe annarbor.com should delete this blatant hate speech?
Not from around here
Sat, Jan 12, 2013 : 7:36 p.m.
For those annarbor.com resident poster unable to do there normal post today, let me try and express what they must be feeling... "grumble grumble grumble Snyder, grumble grumble teapublican, grumble grumble grumble Bushes fault, grumble grumble corporations fault, grumble grumble medical marijuana would fix it, grumble grumble grumble..."
Veracity
Fri, Jan 11, 2013 : 9:04 p.m.
WAY TO GO GOVERNOR SNYDER! So the $1.8 billion dollar reduction in the business tax is actually not producing the jobs that the Governor promised. When exactly does the governor expect our "job-creating" wealthy business owners to start hiring? I suppose that the governor can also be proud of the reduction of state funds to every school system and municipality which led to layoffs of teachers, firemen and policemen. When they lost their jobs they became another unemployment statistic. We had 411,000 unemployed citizens of Michigan in December, so the 27,200 new jobs expected this year will reduce that number by 6.6%. Maybe Governor Snyder will reveal a "Grand Master Plan" for cutting unemployment in half by the end of his term in office during his State of the Union speech. He would have to cause a marked increase in GDP for that to happen by throwing a lot of stimulus money towards improving roads, bridges, sewers and schools. Will he do this and put money into retraining and re-educating former auto workers? I have my fingers crossed but am not holding my breath!
redwingshero
Fri, Jan 11, 2013 : 6:29 p.m.
60% of the time, they're right every time.
GoNavy
Fri, Jan 11, 2013 : 6:09 p.m.
University of Michigan economists have successfully predicted 12 out of the last 7 recessions.
Dog Guy
Fri, Jan 11, 2013 : 6:08 p.m.
For the nonfarm jobs to be created in 2013, do University of Michigan economists also consult the entrails of goats to make their prophecies? Being an economist means never saying you're sorry.
redwingshero
Fri, Jan 11, 2013 : 6:38 p.m.
Just like the weatherman/weatherwoman.
Top Cat
Fri, Jan 11, 2013 : 6:04 p.m.
Beginning the year with a major tax increase in a fragile economy is a prescription for a recession.
clownfish
Sat, Jan 12, 2013 : 2:24 p.m.
and this from another article here: " MLive.com: What to know about Michigan's changing tax structure before filing your returns By Ben Freed Business Reporter 20 Comments Share on facebook Share on twitter Share on email Share on print More Sharing Services 2 Posted on Fri, Jan 11, 2013 : 12:06 p.m. 041310-AJC-taxes-h-and-r-bl.JPG Free volunteer-based tax preparation is available from the IRS for those making less than $51,000 or who are over the age of 60. Many of the changes mandated by a major 2011 tax reform package signed into law by Gov. Rick Snyder will begin affecting Michigan taxpayers on their 2012 returns, according to an MLive report. The package included an approximate increase of $1.4 billion in additional income taxes" these are taxes raised by Snyder. Do you think his tax raises will hurt the economy? We have been told otherwise.
clownfish
Sat, Jan 12, 2013 : 2:21 p.m.
So you agree that Obamas tax cuts work? Why do you think the GOP agreed to raise those payroll taxes then?
LXIX
Fri, Jan 11, 2013 : 5:54 p.m.
Well, I guess that's still within the "moderate growth over the next two years" as was previously reported. Growth by archaic measure is all relative. Or perhaps "derived". Pssst. Anyone out there know how to make a platinum coin?