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A mission out of Michigan

Students, residents flee the state in search of jobs

February 5, 2009

Warmer weather, cheaper housing and, more importantly, better job prospects have kept Michigan residents streaming out of the state, but some experts think the trend will slow down. An annual survey released last month by the trucking company United Van Lines found that more than 67 percent of Michigan moves in 2008 were out of the state. Last year marks the third straight time that Michigan has had the highest rate of outbound moves for any state in the country.

Despite Michigan’s grim migration numbers, 2008’s figures match those of 2007 and seem to signal a slight turn in the opposite direction, state demographer Kenneth Darga said.

“(Last year) was about the same as 2007, and 2007 was worse than 2006; there was a gradual worsening from 2002 to 2006,” Darga said. “Things you read might say that Michigan is increasing its outbound migration rate — but that’s not necessarily true.”

An ongoing issue

Hard-hit by auto industry and manufacturing job losses, many down-on-their-luck residents must face the reality of being jobless.

“Michigan is historically very reliant on manufacturing jobs … but those are going away,” said Mark Skidmore, professor of agriculture, food and research economics at MSU. “We’ve seen modest job growth in other years, but it’s stopped this year.”

The state’s manufacturing industry has decreased by nearly one-third, or 300,000 jobs, since 1999.

The areas most affected by the manufacturing job crunch also appear to be those with the highest outbound migration rates, Skidmore said.

Outbound migration includes the number of people moving in and out of the state, but does not include births and deaths.

In Detroit, the center of the automotive industry, out-migration has diminished the numbers of what was once considered one of the country’s most populous cities.

Wayne County has seen more than 600,000 residents leave the area between 1995 and 2006, more than half of who relocated to other counties in Michigan.

In 2006, less than 2 million people resided in the county.

Flint and Saginaw, which also rely heavily on the auto industry, have similarly been key contributors to outbound migration, Skidmore said.

Some areas that aren’t seeing outbound migration include Traverse City, which has a greater balance of jobs.

“Traverse City has relatively less manufacturing … and amenities that attract people,” Skidmore said.

Of those that flee the state, Florida is the likely destination. The Sunshine State received 10,521 Michiganians in 2005-2006 and was the No. 1 recipient of Michigan residents during that time period, which is the latest data available from the U.S. Census Bureau regarding moving patterns.

Texas, Arizona, Georgia and Tennessee rounded out the top five recipient states for Michigan migrants.

Despite the state’s high outbound rate, Michigan’s migration issue has more to do with a lack of residents moving in than an influx of residents leaving.

Michigan’s property tax policy of charging more to incoming residents than current citizens is partially to blame for that, Skidmore said.

“From a policy standpoint, there’s a lock-in effect that encourages people to stay put,” Skidmore said. “It’s not the full story, but it’s a key factor.”

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Protected by the university

Having MSU and the state’s capital within arm’s reach hasn’t stopped outbound migration in East Lansing, but has significantly limited it, city manager Ted Staton said.

Universities tend to be steadying influences on local migration rates because of an endless student impact on the surrounding businesses, he said.

“I think we don’t have the same level of concerns as other communities in Michigan should have — we don’t have the same job losses,” Staton said.

Despite an increase in MSU’s enrollment from 2003-08, East Lansing has seen its share of moving vans. The city experienced an outbound migration rate of negative 1.3 percent, or 598 less people, from 2000-06, according to the latest figures from the Census Bureau.

East Lansing did post a higher outbound migration rate than Ingham County, which saw negative 0.9 percent migration during the same time period.

The discrepancy can be attributed to the fact that Ingham County is composed of several rural communities where migration often occurs less, said Jeff Smith, project manager for New Economic Initiative.

“There’s a very low likeliness of people leaving in rural townships because you have a lot of established households,” Smith said. “Just based on the sheer number of people, East Lansing would have a higher rate.”

Outbound migration has had only a minimal effect on the housing market, said Nancy Knupfer, chairwoman of the city’s Housing Commission.

“When homes spend a longer time on the market before they’re sold, it has more to do with the economic times,” Knupfer said.

Students look elsewhere

For economics senior Antonio Lombardo, remaining in the Lansing area after his May graduation isn’t much of a possibility after local job searches didn’t produce much.

Lombardo plans to move to Chicago in September to continue his job search after he completes a seasonal job this summer.

“I figured if I didn’t have anything set here I’d rather move someplace else. And if I can start from scratch, I’d rather start from scratch someplace where I might have better luck,” Lombardo said.

Students like supply chain management and communication senior Christie Hwang also hardly considered Michigan because of the economy.

“Supply chain management has a lot of jobs available, but not in Michigan,” Hwang said.

“I right away looked toward other states.”

Hwang is moving to North Carolina in July to start working for a consulting company.

“I’ll definitely miss East Lansing the most,” she said. “I will miss the friends I’ve made here for the past five years.”

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