One-Pager Published March 9, 2020

Opportunity Scorecard: Michigan

By:

Ryan Bhandari

Building off our Opportunity Index model, we looked at cost of living and wages paid across every region in Michigan to see how much opportunity there was for workers. Jobs fall into four categories: hardship jobs, living-wage jobs, middle-class jobs, and professional jobs.¹

In Michigan, statewide, only 40% of jobs support a middle class life or better and on average, individuals need $40,727 to get to a middle class life. Detroit performs better than the statewide average with 45% of its jobs considered middle class or better, but the metro area also lost nearly 7,000 businesses and 100,000 jobs between 2005 and 2015. In total, between 2005 and 2015, 12 out of 15 metro areas lost jobs and 14/15 lost businesses. All four rural areas also lost businesses and jobs over the same time period. Rural areas have 37% of their jobs on average to be considered middle class or better compared to 40% for metro areas in the state of Michigan. The combination of losing jobs and businesses as well as the low number of middle class jobs available to workers indicates that Michigan is struggling to provide the opportunity to earn a good life to its citizens.

Endnotes

For more information on Third Way’s Opportunity Index and job categories, please visit: https://www.thirdway.org/report/the-opportunity-index-ranking-opportunity-in-metropolitan-america. Hardship job: cannot support a single childless adult living by himself.

Living wage job: supports a single childless adult living in a two bedroom unit with another adult. This salary would cover health insurance, food, and basic necessities but no money for entertainment, vacation, savings, or retirement.

Middle class job: pays enough to support half the expenses for a family of four living a middle class life. This includes a three bedroom unit, food, health insurance, basic necessities and money for entertainment, vacation, savings, retirement, and childcare.

Professional class job: pays enough to support 75% of the expenses for a family living a comfortable middle class life. This includes a four bedroom unit and more money for food, entertainment, vacation, savings, and retirement.