Ronald Fisher

Enhancing the job readiness of Michigan residents by providing opportunity for either career technology training (Governor Snyder’s Marshall Plan) or comprehensive and transferable college degrees will not be sufficient to grow the state’s economy unless those young educated folks choose to stay in (or move to) Michigan.

And that may require a change in attitudes and policies.

In fact, there are relatively fewer young, skilled folks in Michigan than in other states, and many college graduates are fleeing. Michigan is old, both in age and attitudes — and the two may be linked.

In 2015-16, Michigan tied for fifth-lowest among all states in the proportion of its population who are young adults age 26 to 34, the group targeted for modern skills. This group accounted for only 11% of the population (similar the proportions found in the populations of West Virginia, Alabama, Kentucky, Mississippi, and New England excluding Connecticut and Massachusetts). In Colorado, the same group accounts for 15% of the population, and 14% in Massachusetts.

By contrast, Michigan ranks fifth-highest among all the states in the percentage of the population 55 years and older, at 31% (in a tie with Hawaii and South Carolina, and right up there with such states as Florida, Pennsylvania, Rhode Island, and West Virginia). This group comprises only 26% in California, and 27% in Maryland and Virginia.

This seems ironic given the large and well-regarded public higher education system in Michigan. Indeed, the U.S. Department of Education reports that Michigan is a net importer of college students, with more students from other states coming to Michigan for college than Michigan students going elsewhere.

However, college students in Michigan don’t stay. One study showed that only about 40% of Michigan residents who go

to college stay in Michigan after graduation. Similarly, the Ann Arbor News reported in 2013 that of U-M's roughly 525,000 living alumni, just 40% — or 211,000 graduates — live in state.

The standard excuse is a lack of jobs in Michigan, but that’s incomplete. The unemployment rate in Michigan for December 2017 was 4.7%, about the middle of the pack among the states. And a number of reports from the business community

show a current and future labor shortage in the state.

Millennials have revealed their preferences both by their choices and in surveys. Education is in, and expected. Diversity is in; exclusion is out. Urban is in; suburban is out. Alternative transportation is in; car culture is out. Attractive public services are in; tax-cutting out. The Pew Research Center reports, “younger generations – particularly Millennials – express more liberal views on many issues …”

If the research is right in showing that many younger folks value diversity, education, an urban environment, alternative transportation options, strong public services, widely available and affordable health care, a healthy natural environment, enhanced environmental policies to address global warming, a reformed criminal justice system, targeted drug legalization, and so on, then moving in those directions makes sense. So …

• Increase support for K-12 education and reform the structure to improve outcomes.

• Reinvigorate revenue sharing for cities. Local governments are in a fiscal straight jacket. The

state should return revenue sharing to prior levels and target that aid to build vibrant urban areas.

• Reallocate state transportation funds, and require cooperation so that urban areas, where road quality is the worst and mass transit is lacking, can correct both.

• Adopt other public policies consistent with attitudes of Millennials. Support diversity, encourage immigration, maintain affordable health care options, reform the criminal justice system both to reduce costs and improve effectiveness, enhance environmental regulations and encourage alternative (clean) energy sources, embrace and encourage new transportation technology, consider legalizing marijuana (following Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon, and Washington), and so on.

• Support the universities. It is important to continue to attract students to the state as we move simultaneously to retain them after graduation. The presence of higher education institutions themselves help make communities more attractive, as certainly is happening in Ann Arbor and Grand Rapids. Likes attract: a concentration of young, educated, skilled, tech-savvy folks attracts others.

Of course, doing many of these things will require more resources, which might mean higher (or at least different) taxes. Possible Supreme Court action this year to make it easier for states to collect sales tax on Internet purchases could help, but it might also be time to consider joining the 33 states that have a progressive income tax.

Does Michigan want to be a state attractive to young people today (like California, Colorado, Massachusetts, Oregon, Virginia, and Washington) or one that continues to see young folks move away to those states?

Developing an environment consistent with the attitudes of young, educated folks might help. It would be ironic and tragic to invest substantial resources to educate and train young workers, only to see that effort contribute to the skilled workforces in other states.

Ronald Fisher is Professor of Economics at Michigan State University. The opinions expressed are the author’s alone and do not necessarily represent the views of Michigan State University or its officials.