2023 State of the Region

COVER

“May you live in interesting times,” an expression attributed, perhaps incorrectly, to an ancient Chinese curse certainly can be applied to the Detroit Region.

Bloomberg ranked Michigan’s economy #1 of all large states for resilience through the pandemic.

Since World War II, Detroit has traveled a path from the Arsenal of Democracy and the most prosperous city in the nation, to a city written off by many, to the “comeback” city and darling of the national press and international tastemakers.

The Detroit Region’s unemployment rate was actually below the national rate at the end of 2022, and both Michigan and the Region’s rate were at or below the national rate at numerous points since the pandemic.

A region known for its manufacturing prowess and muscle (both in its workers and its vehicles) is now a place that is home to the largest concentration of engineers in the nation, a top 10 locale for doctorate degrees, a recognized and growing tech hub, and a global center for next-generation electrified vehicles.

We reside in a state that built its wealth and stature in the global economy based on our ability to build things and trade things. But perhaps our most important resources are the things that are natural and not moveable – our immense natural beauty and fresh water.

Michigan is a state that is changing and one of contradictions – both are good things.

The changes that are taking place in the Detroit Region and across the state are certainly interesting, and the dynamics of the global pandemic have stressed every institution and individual on the planet. Michigan is no exception.

But something funny happened during the pandemic. In a “Freaky Friday” type twist, Michigan and the Detroit Region put to pasture the generations-old “when America gets a cold, Michigan get the flu” dynamic.

As painful as the COVID-19 pandemic was – and the toll it took on our families and our businesses – the Region and state actually fared better than most of the nation during this once-in-a-century challenge.

Our Region’s private sector jobs have recovered to pre-pandemic levels.

The Detroit Region was as healthy as the nation throughout the pandemic and remains so today.

Looking forward to 2023, many fear a recession, pointing to high-profile layoffs in the tech industry, plummeting consumer confidence, and rising interest rates.

I remain optimistic. Most companies are still struggling to hire talented team members, unemployment remains at record lows, supply chain challenges are significantly less stressed, and inflation appears to be easing. And while consumers are pessimistic about economic conditions, they largely remain confident in their own economic situation and continue to spend despite elevated inflation.

Given recent history, no doubt 2023 will be interesting in the Detroit Region – but let’s look forward with confidence.

Sandy K. Baruah President and Chief Executive Officer, Detroit Regional Chamber

This year’s State of the Region report shows that Greater Detroit is a prime example of the kind of resiliency that has become so necessary following the pandemic.

There is still a high demand for talent and Citizens continues to work with partners to expand the pipeline for diverse talent, ensuring opportunities for growth and leadership, and building a culture of belonging.

We know what it takes to adapt and bounce back from difficult times, and even as we face a potential slowdown induced by efforts to tap the brakes on the economy and curb inflation, we are well-positioned to overcome any challenges.

In a recent address to the Detroit Economic Club, Citizens CEO Bruce Van Saun spoke about how the combination of leadership, culture, and innovation tied to an intense focus on customer needs has driven Citizens’ success.

I think similar strengths have helped Detroit rebound yet again and set us up to face the future with confidence.

And don’t just take my word for it: the data supports this view.

Overall, the Detroit Region has shown tremendous resilience over the past few years, with the Region outpacing the state and nation in annual Gross Domestic Product (GDP) growth in 2021.

In 2022, the Region’s private sector jobs fully recovered to 2019 levels, as unemployment rates dropped to levels last seen in 2000.

Wages and salaries rose over 2022, and while inflation is still a major concern for residents, consumer spending remains robust.

Still, the short-term business outlook remains uncertain with strong labor markets coupled with signs of weakening in interest-sensitive industries.

In fact, a recent Citizens Business Conditions Index™ showed a drop nationally and in Michigan as we saw heightened impacts from the Fed’s policy actions to reduce inflation.

The Greening of Detroit’s program offers unemployed residents hands-on job training opportunities and certifications within the landscaping sector. Grow Detroit’s Young Talent is a citywide summer jobs program that trains and employs young adults, ages 14-24. Focus: HOPE’s program serves low-income adults in Metro Detroit and prepares them for success through a holistic job readiness training and placement program for careers in manufacturing, culinary arts, construction, IT, robotics, welding, and truck driving.

Citizens’ partnership with LISC is enabling the launch of new tech-related Bridges programs to prepare participants for opportunities in tech and tech-adjacent careers.

We also support programming that strengthens and grows women- and minorityowned businesses through the Great Lakes Women’s Business Council.

As we recover from the pandemic and face new challenges together, Citizens will continue to serve as partners and trusted advisors to our customers as we aim toward an even better future of opportunity and economic prosperity for Detroit.

DEFINING THE REGION

6 21

TALENT AND FUTURE OF WORK

10 25

KEY ECONOMIC INDICATORS

STATE OF DEMOCRACY

13 28

INFLATION IMPACTS

17 32

OUTLOOK FOR 2023

18

WHAT BUSINESS LEADERS ARE THINKING

RACIAL JUSTICE AND ECONOMIC EQUITY

INFRASTRUCTURE AND THE ECONOMY

The Detroit Regional Chamber has worked with premier research firm and polling partner, the Glengariff Group Inc., over the past three years on an ongoing series of perception polls of registered voters in Michigan. The most recent data was collected between Nov. 28 and Dec. 1, 2022. Highlights can be found throughout the report.

MORE LEADING REGIONAL DATA

As one of the Region’s leading sources of business-focused research and data, the Chamber produces a host of annual Signature Reports and Publications that are go-to resources for the business community.

Reports like the Michigan is Automobility Report, State of Education, and State of the Region have become integral sources of business and industryspecific data for decision-makers across the state.

detroitchamber.com/research

Michigan Voter Poll

The Detroit Region proved resilient throughout the pandemic and through 2022 amid rising inflation and interest rates.

While the Detroit Region typically suffers more during economic hardships, it outpaced the state and nation in annual gross domestic product (GDP) growth in 2021.

Inflation remains as a great concern for residents, yet consumer spending remains robust.

TAKEAWAYS

In 2022, the Region’s private sector jobs fully recovered to 2019 levels, and unemployment rates reached levels last seen in 2000.

Wages and salaries rose over 2022, while the end of the year showed moderation in wage growth.

92% of respondents are concerned about inflation, according to a Detroit Regional Chamber December 2022 Michigan Voter Poll.

Consumer sentiment reached the lowest reading on record, yet demand and consumer spending continued to rise. Rising interest rates are expected to slow the 2023 housing market, yet home prices remain above pre-pandemic levels.

Despite declining job postings in late 2022, talent demand remains 20% higher than 2019 levels.

Business outlook remains uncertain with strong labor markets coupled with signs of weakening in interestsensitive industries.

Business leaders and economists expect a brief and shallow recession in 2023 as manufacturing purchasing confidence reaches historical lows.

Low labor force participation hovers at 62%, 0.6 percentage points below the nation, and last among peer regions.

Despite visitor levels reaching near pre-pandemic levels, momentum remains slow for daily workers in downtown Detroit.

Rising interest rates pose challenges to the automotive and mobility sector, but R&D and infrastructure investments have bolstered the Region’s electric vehicle industry. Business starts in the Region are still above pre-pandemic levels, and views on Detroit as a favorable investment opportunity reached a Detroit Reinvestment Index survey high.

Michigan’s economy proved more resilient through the pandemic than previous downturns. Bloomberg ranked the state #1 in economic recovery.

5,460,910 $241.6 B

The Detroit Region is a dynamic, united 11-county area encompassing more than 300 municipalities and 7,062 square miles with rich geographic, human, and business assets. Home to 5.4 million people, 34 educational institutions, and more than 387,000 business locations, including 10 Fortune 500 companies, the Detroit Region has a diverse economy, low cost of living, and highly skilled workforce. Anchored by the city of Detroit, the Region is an international gateway supported by robust international infrastructure and offers unrivaled opportunities and innovation.

43.3%

$67,153

387,000

2.5 M

103.1 62.4%

POPULATION OVERVIEW 2021

POPULATION PERCENT CHANGE

The 11-county Detroit Region’s population increased 1.3% since 2010, despite five counties seeing a population decline.

Livingston, Oakland, and Washtenaw saw the largest population growth, while Genesee, Shiawassee, and Wayne declined the most. Further, the city of Detroit declined 11.4%, or 81,313 people, since 2010.

FORTUNE 500 AND LARGEST PRIVATE COMPANIES

The Detroit Region is Home to 10 of Michigan’s 19 Fortune 500 Companies with Headquarters in the State

As the epicenter of the global automotive industry, Ford Motor Company and General Motors are among the top of the Fortune 500. Stellantis N.V., with its North American headquarters in Auburn Hills, employs more than 42,400 people in Southeast Michigan and earned $149.4 billion in revenue in 2021. Penske Corp. leads as the Detroit Region’s largest private company, with $37 billion in revenue.

2021 FORTUNE 500 COMPANIES, DETROIT REGION

2021 LARGEST PRIVATE COMPANIES

JOBS BY INDUSTRY

Health Care, Government, Manufacturing, Retail, Top Four Industries in the Detroit Region

KEY ECONOMIC INDICATORS

REAL GDP

The real gross domestic product (GDP) measures economic activity by measuring the value of goods and services produced while adjusting for inflation.

REAL GDP: UNITED STATES

Increase in Third Quarter U.S. GDP Reversed Two-Quarter Decline

The U.S. GDP decreased at an annual rate of -1.6% in the first quarter of 2022, and -0.6% in the second quarter. Typically, two consecutive quarters of negative GDP growth is considered a recession, according to the National Bureau of Economic Research. However, this economy’s conditions were unique. In the third quarter, the U.S. GDP increased at an annual rate of 3.2%, reversing a six-month decline and reflecting increases in exports and consumer spending.

REAL GDP: MICHIGAN AND DETROIT MSA

Detroit Region’s Economy Performed Better Than Michigan’s in 2021

Michigan’s GDP totaled $481.7 billion in 2021, increasing 7.4% annually, making Michigan the 14th-largest state economy in the nation in 2021. The largest contributions to Michigan’s GDP is derived from the manufacturing, finance, and real estate sectors. Ranked 16th-largest economy in the United States, the Detroit MSA’s GDP in 2021 outperformed the state at an 8.7% increase.

Source: U.S. Bureau of Economic Analysis

PRIVATE SECTOR EMPLOYMENT Has Fully Recovered

A resilient labor market in 2022 contributed to private sector employment recovery. Private sector jobs in the Detroit Region exceeded prepandemic levels, reaching 2.14 million by November 2022, up 2.5% from November 2021 and 38.9% from April 2020.

As interest rates rose in 2022, employers continued to seek and hold on to talent. More recent job reports showed the services sector leading in job growth, led by leisure and hospitality, which suffered the largest job losses over the months.

UNEMPLOYMENT RATE

Reached Lowest-Recorded Monthly Rate Since 2000

The Detroit Region’s unemployment rate fell to the lowest recorded rate since 2000 and remained steady near 3.0% since mid-2022. As lower unemployment suggests higher spending patterns, pressure on prices continues with increased demand for services.

Individuals with higher education attainment experience lower levels of unemployment. The unemployment rate for individuals with a bachelor’s degree or higher held steady at 1.8% in November 2022, which is over half that of those with other college experience (3.2%) and is 5.5 percentage points less than those with a high school diploma (4.6%).

PRIVATE SECTOR JOBS Detroit Region

MEDIAN HOUSEHOLD INCOME Increased Nearly 20% Since 2016

The median household income for the Detroit MSA increased by 5.8% from 2019 to $67,153 in 2021. Over the last five years, regional median household income has increased by nearly 20%, but continues to sit below the national average.

Median household income is considered a strong indicator of economic equity in the Region. Despite 2021’s increases, the inequities in the Region’s household income persist by race and ethnicity.

WAGES AND SALARY Saw Substantial Increases in 2022, Growth Leveling

In 2022, U.S. wages and salaries saw the highest increases since 2018 indicating a strong labor market. In the Detroit Region, wages and salaries for private industry workers increased 5.0% in the 12-month period ending in September 2022.

The Detroit Region’s average weekly wages have increased by 4.0%, totaling $1,354, since 2021, and 17.2% since 2018.

CHANGES IN WAGE

INFLATION IMPACTS

CONSUMER PRICE INDEX Prices Up 8.5% From Previous Year, Tracks to the National Inflation Rate

The consumer price index (CPI) measures how prices change over time and is a key measure of inflation. Inflation surged in 2022 as U.S. consumer prices increased annually by 9.1% in June 2022 — the highest jump in more than 40 years. When the inflation rate rises rapidly, it can result in reduced purchasing power, higher interest rates, and overall slower economic growth. The Federal Reserve targets a 2% inflation rate through several price indexes to maintain price stability, along with the mandate for maximum employment.

CONSUMER PRICE INDEX

8.5% Detroit

All Items

6.2% Detroit

Core (All Items Less Food and Energy)

7.7% U.S. All Items

Inflation has impacted many business sectors, including health care. Photo courtesy of Corewell Health.

CONSUMER SPENDING Shifts to Services in 2022

Consumer spending, measured as real personal consumption expenditures, is the biggest driver of U.S. economic growth as it is the largest GDP component.

Despite rising prices, national consumer spending amounted to $14.1 trillion in Q3 2022, up from $13.8 trillion a year earlier. Goods spending slowed over 2022, while services spending increased each quarter, making up two-thirds of consumer spending in 2022.

63.3% of voters said they have had to make new spending choices.

Chamber Perspective: Despite persistent record-high inflation in 2022, two-thirds of voters report they are doing the same, if not better, economically. While inflation begins to impact buying patterns, and voters remain very concerned with rising prices, the economy is still growing with a tight labor market.

CONSUMER SPENDING United States

CONSUMER SPENDING GOODS VS. SERVICES United

States

Michigan Voter Poll

Source: U.S. Bureau of Economic Analysis

U.S. Consumer Spending

CONSUMER SENTIMENT

Consumer Optimism in 2022 Hits Lowest Reading on Record

As a leading indicator of economic growth, consumer sentiment, affects business and household decisions on spending and saving. In December 2022, the consumer sentiment increased to 59.1, but remained low from a historical perspective.

Typically, declining unemployment rates lead to increases in consumer confidence. However, despite record-low unemployment, consumer sentiment plummeted in 2022.

107.6

92.0% of voters are concerned about inflation.

Chamber Perspective: While gas prices were ranked as the second-largest inflation concern, at the time of the survey, gas prices nationally and in Michigan were lower. Clearly, voters are still chastened by very high fuel prices during the summer travel season and have yet to fully absorb the return to lower levels.

Michigan Voter Poll

Source: University of Michigan Note: December 2022 is preliminary.

BUILDING PERMITS

Multifamily Up 25% Over 2021 Levels, 53% Over Pre-Pandemic Levels

New privately-owned residential construction permits for the first 10 months of 2022 tracked similarly to 2021 for the Detroit MSA and were up 10% over the same period in 2019.

Permits for units in multifamily structures increased 53%, while single family homes were down 8%, over 2019 levels.

Rising interest rates, cost increases related to the supply chain, and labor availability have dampened the outlook for new housing starts in the Region. As a result, monthly permits were down 42% in October 2022 compared to the same month in 2019.

HOME PRICES

Remain High as Higher Interest Rates Slow Home Buying Activity

Median sale prices of existing regional single-family homes in the Detroit MSA decreased in Q3 of 2022, while sales prices were 8.3% higher than annual 2021 levels. Additionally, median days on the market increased to 40 in October 2022, up 33% from 2021.

Nationally, mortgage applications have decreased with rising mortgage rates. Only 16% of consumers in October 2022 said now is a good time to buy a home, according to the Fannie Mae Home Purchase Sentiment Index.

OUTLOOK FOR 2023

ENCOURAGING: CHALLENGING:

INFLATION IS MODERATING.

As of December 2022, inflation eased for the sixth straight month, with the lowest levels reported since 2021. After peaking in June 2022, the Consumer Price Index showed moderating prices led by falling energy and used vehicle prices.

CONSUMER SPENDING REMAINS STRONG.

Amid personal saving rates and consumer confidence at historic lows, job security and prospects, along with pent-up demand, remain elevated.

MOST LEADERS DON’T ANTICIPATE A DEEP RECESSION.

Though most economists expect a mild economic slowdown in mid-2023, current regional unemployment levels are the lowest since 2000. It is unusual for the U.S. to have an economic slowdown without weakness in the job market.

THE LABOR MARKET REMAINS STRONG.

Employers were eager to hire and reluctant to lay off workers through 2022. Layoffs and initial claims for unemployment insurance have remained extremely low, while job postings remain strong. More jobs remain available than workers available to fill them.

JOB POSTINGS ALSO REMAIN STRONG.

Despite rising interest rates, Michigan business applications have totaled over 107,000 as of Q3 2022 – up 45% compared to the same period in 2019.

ECONOMIC UNCERTAINTY REMAINS.

While inflation leveled at the end of 2022, the uncertainty surrounding additional interest rate hikes, labor market responses, and political and social factors remain concerning. Additionally, the Federal Reserve has yet to reach the 2% inflation target, even after raising rates seven times in 2022.

LOW LABOR FORCE PARTICIPATION PERSISTS.

Child care and elder care challenges, early retirement, and an aging workforce contribute to the widening gap between the number of available workers and listed jobs, exceeding its historical average.

INTEREST-SENSITIVE INDUSTRIES ARE CONCENTRATED IN THE DETROIT REGION.

The regional automotive, mobility, and mortgage lending industries are facing challenges as the average price of a new car reached record levels, and mortgage interest rates increased to 7% in 2022.

INSTABILITY ABROAD AMPLIFIES UNCERTAINTY.

Factors like global energy prices, the ongoing Russia-Ukraine War, and high inflation, along with slowing global trade and economic growth, increase concerns.

PERSONAL SAVING RATE DROPPING.

Credit worthiness, bank balances, and loan repayments all remain strong, though the national personal saving rate has dropped to 2005 levels.

WHAT BUSINESS LEADERS ARE THINKING

U.S. CEOs’ PERCEPTION Remains Uncertain, Leaders Expect Shallow Recession in 2023

Growing uncertainty remained among U.S. CEOs through Q4 2022, as leaders navigated rising cost pressures, supply chain challenges, and labor availability. CEOs’ forecast of U.S. business conditions trended downward over 2022 as interest rate hikes occurred. While leaders expect conditions to worsen in the year ahead, there are encouraging signs as consumer demand remains strong.

Only 37% of CEOs expect consumer demand to decline through 2023.

85%

are preparing for a brief and shallow recession over the next 12-18 months.

expect their capital budgets to increase or remain the same over the next year.

44%

86% 68%

report some problems attracting qualified workers.

expect to expand their workforce over the next 12 months.

Source: The Conference Board, Measure of CEO Confidence 2022 Q4

Fox 2 Detroit’s Roop Raj (left) speaks with Federal Reserve Bank of Chicago then-President and Chief Executive Officer Charles L. Evans (right) at the 2022 State of the Region.

SMALL BUSINESS INDEX

Inflation Biggest Challenge Facing Small Businesses, Supply Chain Concerns Diminish

only believe their business is in good health.

believe the U.S. economy is in good health.

say rising prices have significant impact on their business.

reported inflation as biggest challenge, up 30 percentage points over 2021.

are comfortable with their cash flow.

expect revenue to increase in 2023.

MANUFACTURING PMI Contracted in November 2022 After 29 Consecutive Months of Growth

Widely seen as a leading business indicator, the Manufacturing PMI® (Purchasing Managers’ Index) reports on economic activity in the manufacturing sector. A level of 50.0% over a period of time indicates an expansion of the manufacturing sector.

In April and May 2020, Manufacturing PMI® contracted, ending a period of 131 consecutive months of growth. November 2022’s 49.0% rate indicated further contraction.

® United States

NEW BUSINESS APPLICATIONS Remain Higher Than Pre-Pandemic Levels

New business applications are a leading indicator of future economic growth and entrepreneurial activity. In 2021, applications hit a record high with over 150,000 business applications filed, a 60% increase compared to pre-pandemic levels. As of Q3 2022, Michigan business applications totaled 107,559, up 45% over the same period in 2019.

DETROIT REINVESTMENT INDEX 2022 Detroit Viewed as Positive Investment Opportunity, Increasing 10 Percentage Points Over 2017 Level

Detroit Future City’s Detroit Reinvestment Index tracks local and national perceptions of Detroit and its economic growth since bankruptcy in 2013. The 2022 annual survey shows increasingly favorable views of Detroit by national business leaders.

82%

have a favorable view of Detroit as an investment opportunity.

NEW BUSINESS APPLICATIONS Michigan

70%

stated Detroit has a high potential for future business and investment opportunities.

of Gen Z and Millennials have positive views of Detroit as an investment opportunity.

Source: U.S. Census Bureau

Source: Detroit Future City, Detroit Reinvestment Index 2022

TALENT AND FUTURE OF WORK

EDUCATIONAL ATTAINMENT

Continues to Increase, Lags Peers

Educational attainment refers to the highest level of education that an individual has completed. The population with an associate degree or higher in the Detroit Region has continued to rise over the past five years. Despite the Region’s educational attainment rate increasing by 4.2 percentage points from 2016 to 2021, Detroit continues to lag behind peer regions and the national average.

The Region’s attainment rate includes 9.1% of the adult population with an associate degree, 20.4% with a bachelor’s degree, and 13.8% with a graduate or professional degree. Over 1.3 million residents in the Detroit Region have earned an associate degree or higher. By 2030, 70% of Michigan jobs will require at least some postsecondary education. Therefore, accelerating attainment is important to fuel economic growth, create equal opportunity for all residents, and increase income.

EDUCATIONAL ATTAINMENT

Associate Degree or Higher, Population 25 and Over

REGIONAL ATTAINMENT

Adult educational attainment is essential to reaching the Chamber’s 60% by 2030 attainment goal. In the Detroit Region in 2021, 655,000 adults have some college credits but no degree or credential. There is no path to 60% educational attainment without increasing the number of adults with “some college, no degree,” to degree or credential completion.

Source: U.S. Census Bureau

Source: Lumina Foundation, Note: Short-term credentials are from 2019 for the State of Michigan.

Bedrock team members back to work in downtown Detroit.

LABOR FORCE PARTICIPATION

Rate Decreased to 2016 Levels in 2021

The labor force participation rate (LFPR) is the percentage of the population 16 years and older that is working or actively looking for work. The Detroit Region registered at 62.4% in 2021, down from 63.1% in 2019. The Region’s LFPR continues to sit at 0.6 percentage points below the national rate.

JOB POSTINGS S

Steadily Fall in the Second Half of 2022, Remain High

Regional job postings peaked at nearly 238,000 in March 2022. Additionally, the Federal Reserve approved its first interest rate hike in March 2022, the first increase since December 2018, to combat high inflation. Jobs postings steadily fell in the second half of 2022 but remained above pre-pandemic levels -- decreasing by 4.6% since the start of 2022.

Source: Lightcast

TOP JOB POSTINGS BY OCCUPATION

REGISTRED NURSES

44,778

RETAIL SALES

27,271

TOP JOB POSTINGS BY INDUSTRY

HEALTH CARE AND SOCIAL ASSISTANCE

106,048

ADMINISTRATIVE AND SUPPORT; WASTE MANAGEMENT AND REMEDIATION SERVICES

85,103

SOFTWARE DEVELOPERS MANUFACTURING

SALES REPRESENTATIVES (WHOLESALE AND MANUFACTURING)

24,928

20,325

FIRST-LINE SUPERVISORS OF RETAIL SALES WORKERS

19,041

RETAIL TRADE

85,017

82,453

PROFESSIONAL, SCIENTIFIC, AND TECHNICAL SERVICES

79,831

REMOTE WORK AND DAILY DOWNTOWN WORKERS

Remote Work on the Rise in the Region, Downtown Detroit Workers Slow to Return

AVERAGE

Detroit ranks 50 out of 62 downtowns recovering post-pandemic.

OFFICE AND INDUSTRIAL VACANCY RATES Remain Steady Despite Remote Work Shifts

The Detroit Region’s office and industrial vacancy rates remain steady despite ongoing shifts in workplace needs. Since 2021, office vacancy rates experienced a slight decrease of 0.3 percentage points and industrial vacancy rates remained at 3.9%

Organizations are opting for smaller office footprints as leases come up for renewal, and subleasing levels have increased from 900,000 square feet prepandemic to 1.8 million square feet in the third quarter of 2022, according to Newmark’s Metro Detroit Office Q3 2022 report.

WORKERS WORKING FROM HOME

Source: Placer.ai, Compiled by the Dowtown Detroit Partnership

Source: School of Cities

Source: U.S. Census Bureau

Source: CoStar

STATE OF DEMOCRACY

MICHIGAN VOTER POLL

Conducted between Nov. 28 and Dec. 1, 2022, the Chamber’s latest Michigan Voter Poll from the Glengariff Group Inc. showed voters are confident about democracy and the 2022 election process.

60%

75% 83%

of voters said they were optimistic about democracy.

29.0% of voters said they were pessimistic.

of voters believe the election was accurate, 13.3% said the election was inaccurate, and 11.4% were unsure.

of voters approved of the process by which they cast their vote, and only 12.7% disapproved of the process.

57% 90%

of voters said they feel the same about the state of democracy now than they did before the November 2022 election, 23.4% feel better, and 15.4% feel worse about democracy.

of voters approved of the way their community handled the November 2022 election. 69.5% strongly approve, and only 4.5% disapprove of how their community handled the election.

MICHIGANDERS APPEAR TO BE EXPRESSING A COLLECTIVE SIGH OF RELIEF POST-ELECTION DAY WITH AN INCREASED CONFIDENCE IN OUR VOTING PROCESS, CALLS FOR A CENTRIST AGENDA IN LANSING, AND CONFIDENCE IN GOVERNOR

WHITMER AS SHE EMBARKS ON HER SECOND TERM.”

Sandy K. Baruah, President and Chief Executive Officer, Detroit Regional Chamber

These findings are significant, especially following the tumultuous November 2020 election and the mistrust and misinformation around the electoral process that followed. Perceptions persist among a small, but consistent, sector of Republicans who believe modern voting practices and reforms are associated with cheating and fraud. Perhaps the most important outcome of the 2022 midterm elections was the lack of drama surrounding the voting and vote counting – as well as candidates who fell short conceding defeat as is the American tradition.

ELECTION ENVIRONMENT

TOTAL REGISTERED VOTERS

Increased to More Than 4.5M Voters in the Detroit Region in 2022

One of the most important ways to participate in our democracy is to vote, as registered voters are more likely to be active and engaged citizens. In 2018, Michigan passed Michigan Proposal 18-3 expanding voting rights, which allows citizens to register to vote anytime with proof of residency and become automatically registered to vote when applying for, updating, or renewing a driver’s license or state-issued personal identification card unless the person declines.

Another important aspect of voter registration is the registered voter database called the Qualified Voter File, which is maintained by the State of Michigan, municipal and county clerks, and the Bureau of Elections.

According to the State of Michigan as of December 2022, more than 98,000 inactive voter registrations in Michigan are slated for cancellation in 2023, and more than 400,000 in 2025.

Source: State of Michigan Secretary of State Office

Note: 2022 registered voters through July 2022.

REGISTERED VOTER TURNOUT Exceeded 2.4M in Detroit Region for 2022 Midterm Election

For the 2020 presidential election, the Region’s registered-voter turnout increased to 69%, with over 3 million ballots cast in the Region. In the 2022 midterm elections, more than 2.4 million ballots were cast in the Region, producing the highest number of ballots in a midterm election in a decade.

In 2022, Michigan passed Michigan Proposal 22-2, establishing new procedures that allows military personnel serving abroad to have a grace period of six days after Election Day to have their mailed ballots. Proposal 22-2 will also allow for nine days of early in-person voting, giving citizens more flexibility to cast their votes conveniently.

ABSENT VOTER BALLOTS S Returned in the Detroit Region are Up 76% in 2022 Midterm Election From 2018

Due to the passage of the statewide ballot Proposal 18-3 in 2018, all eligible and registered Michigan voters may request an absent voter ballot without providing a reason. In the 2020 presidential election, more than 1.7 million registered voters voted absentee in the Detroit Region. In 2020, voting by mail increased by 183% in the Region, compared to the 2016 presidential election.

The trend continued in the 2022 midterm elections, with more than 1 million voters casting their ballots by mail in the Region, increasing 76.3% from the 2018 midterm elections. Proposal 22-2 passed in 2022, which allows qualified and registered voters to automatically receive an absentee ballot for future elections.

REGISTERED VOTER TURNOUT Detroit

Source: State of Michigan Secretary of State Office

Note: 2022 registered voters through July 2022.

Source: State of Michigan Secretary of State Office

RACIAL JUSTICE AND ECONOMIC EQUITY

POPULATION BY RACE AND ETHNICITY

In 2021, the Detroit Region’s population was 65% white residents, with Black or African American residents accounting for 22%, and Latino or Hispanic and Asian residents at 5% each. The Region has a higher share of the Black or African American population compared to the national share of 12%.

+45% Asian +31% Hispanic or Latino

-3% Black or African American

Change in Population 2010-2020

Detroit MSA

-4% White

SHARE OF POPULATION BY RACE AND ETHNICITY

Detroit MSA

5% Hispanic or Latino

Total Population

4,365,205

7% Two or More Races

65% White

5% Asian

22% Black or African American

2% Other

Source: U.S. Census Bureau, American Community Survey 2021 1-year Estimates

Note: Percentages do not add to 100%. Hispanic or Latino are of any race.

Youth from NeighborHUB grant recipient One Michigan for Immigrant Rights gather after a group reading session at the Undocumented Safe Space in Detroit.

PER CAPITA INCOME

Inequities Persist by Race and Ethnicity in the Detroit Region

Per capita income is a measure of economic well-being and an indicator of economic equity in a region. Asian residents had the highest average per capita income in 2021 at $48,392, while Hispanic residents had the lowest at $24,257

In 2021, the average income per capita for white residents was $18,133 higher than for Black or African American residents and $23,315 higher than for the Asian population. Both gaps have increased since 2019.

UNEMPLOYMENT GAP

Black or African American Workers Continue to Face High Unemployment

The unemployment rate measures the percentage of people over 16 years old who are not working but are available and actively looking for work. In 2021, the Asian population in the Detroit Region had the lowest unemployment rate (4.3%)

At 15.4%, the regional unemployment rate for the Black or African American population was nearly 2.4 times higher than the national rate and nearly twice the rate in the Detroit Region.

MEAN PER CAPITA INCOME Detroit

UNEMPLOYMENT RATE

Population 16 and Older, Detroit MSA

National Average Detroit MSA Asian White Black or African American Hispanic, Any Race

National Average Detroit MSA Asian White Black or African American Hispanic, Any Race

MSA

Source: U.S. Census Bureau, 2021 American Community Survey, 1-Year Estimates

Source: U.S. Census Bureau, 2021 American Community Survey, 1-Year Estimates

DIGITAL ACCESS GAP

Internet Access is Improving, Gaps Remain Among Racial Groups

Internet connection allows families and individuals to engage in the economy and significantly impacts social and economic opportunities. In 2021, 93.7% of the Region’s households had an internet subscription.

Of the total Detroit MSA population, 3.4% reported no internet subscription in 2021, compared to 5.2% in 2019. Gaps in internet access can further increase existing inequities. Black or African American households without internet were 2.3 times higher than white households, and 4.6 times higher than Asian households.

HOMEOWNERSHIP RATE

Black or African American Homeownership is Increasing, Lags Behind Other Racial Groups Significantly

Overall homeownership rates increased for all racial and ethnic groups, with the gap slightly decreasing between white and Black households since 2019.

Yet, in 2021, the Region’s Black or African American households had the lowest homeownership rate at almost 34 percentage points lower than white households.

Hispanic or Latino households saw the most significant increase in homeownership rates at 4.8 percentage points followed by Black or African American (3.0p.p.), Asian (2.9p.p.), and white (2.2p.p.)

CENTER ON BLACK VOICES PARTNERSHIP

The Center on Black Voices is Gallup’s national research initiative devoted to studying and highlighting the experiences of more than 40 million Black Americans – tracking and reporting on progress on life outcomes and a life well-lived.

As part of its efforts to increase equity and outcomes for all Detroiters, the Detroit Regional Chamber led the charge to bring the Gallup Center on Black Voices to Detroit. Through this partnership, Detroit is one of the first cities in the country to work with Gallup to launch a hyper-local survey on the experience of Black Detroiters.

The Chamber and Gallup launched the first Detroit Resident Voices Survey in September 2022, sending it to 120,000 households across the tri-county region. Responses to the 61-question survey are currently being collected. The questions were developed from feedback gathered at local briefings with the Chamber’s Racial Equity Blueprint Group, various community organizations, and funders. In Spring 2023, inaugural results will provide new, unique data showcasing their life experiences, perceptions, and more.

DATA HIGHLIGHTS FROM THE CENTER ON BLACK VOICES NATIONAL SURVEY

76%

of respondents are dissatisfied with the way things are going in the United States.

AND

62% HIGH COST OF LIVING AND INFLATION ECONOMY IN GENERAL

VIEW ON ABILITY TO ACCESS JOBS

Think they have as good of a chance to get a job compared to people in their community of different races.

say now is a good time to find a quality job, however, the ability to access jobs varies by race.

INFRASTRUCTURE AND THE ECONOMY

Michigan received a D+ overall on the latest Michigan Infrastructure Report Card, which grades the state on all infrastructure that is imperative to the state’s economy and directly impacts residents. Michigan is up against aging infrastructure and a lack of funding, resulting in low grades across the board. However, the state government plans to invest $5 billion into Michigan’s infrastructure to improve drinking water, high-speed internet, and roads, as well as making the largest investment into the state and local parks in Michigan’s history.

DRINKING WATER ENERGY BRIDGES

Source: American Society of Civil Engineers, 2018

DAMS

STORM WATER

Cavnue, the leading developer of advanced roadways designed to unlock the full potential of connected and automated vehicles (CAVs), is building the nation’s first CAV Corridor along I-94, connecting Detroit and Ann Arbor.

ROAD QUALITY AND FUNDING Road Funding Rises 73% Over 2016 Levels

Funding for roads in the Detroit Region has experienced a steady increase over the last five years. In 2021, the 11 counties received a 73% funding increase over 2016 levels.

EXPORTS Increasing But Not Fully Recovered to Pre-Pandemic Levels

In 2021 the Detroit MSA exported $35 billion worth of goods across the globe, a 16% decrease since 2016. Since 2020, exports have increased by 15.4% but remain below pre-pandemic levels.

The Detroit MSA was affected by the semiconductor chips shortage and saw a steep decline in exports of transportation equipment in 2020. Although transportation equipment exports are not back to their prepandemic numbers, there has been a 17.7% increase since 2020.

PUBLIC TRANSPORTATION RIDERSHIP is Having a Slow Comeback After the Pandemic

Public transit is a critical infrastructure for communities, and many residents heavily rely on these systems to help them perform essential activities. Black or African American residents in the Detroit Region accounted for 72% of the total public transit commuters. In 2019, on average more than 3.8 million riders used public transit in the Detroit Region. In 2022, more than 1.7 million riders use public transit monthly.

DETROIT METRO AIRPORT PASSENGERS

Surpasses 2021 Volume, Still Trailing 2019 Passenger Volume

Detroit Metropolitan Wayne County Airport is Michigan’s largest airport with more than 1,100 flights per day to and from four continents employing more than 86,000 individuals throughout the state. Despite significant increases throughout the two years, passenger traffic still trails behind 2019 with nearly 11 million fewer passengers.

PUBLIC TRANSIT RIDERSHIP ALL MODES Detroit Region

MONTHLY

Source: National Transit Database

Source: Wayne County Airport Authority

MICHIGAN ELECTRIC VEHICLE LANDSCAPE

10+

EV models projected to be produced through 2025.

$16.3 B 17,500

in total EV and/or battery investments announced by OEM and suppliers since 2020.

registered EVs in 2021, up 600% from 2,500 in 2017.

With a goal to deploy 100,000 EV chargers by 2030, the State of Michigan is working to ensure the state’s infrastructure supports the transition to electric vehicles. Funds from the National Electric Vehicle Formula Program, Inflation Reduction Act, and other federal and state funding sources aim to deploy charging infrastructure along Michigan’s roads, along with assisting local communities in buildout of EV charging networks.

#1 1,030+

state in EV and battery announced investments.

publicly accessible charging station locations.

FOR MORE DATA, GO TO MICHAUTO.ORG