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Plugging the brain drain

Granholm, officials differ on solutions to keep the state's college grads in Mich.

By Allison Bush Originally Published: 04/16/09 11:37pm Modified: 04/16/09 11:51pm 8 comments

braindrain
Photo illustration by Sam Ruiz and Chelsea McGorisk The State News Reprints

Dearborn — When 2006 MSU graduate Alicia Bowerman moved to New York City three years ago, she had no job prospects but had plenty of MSU contacts. “It’s a small world, even though it’s New York City,” Bowerman said, laughing. “I mean, I run into people I went to basketball games with my freshman year.”

Bowerman received a degree in apparel and textile design and said by the time she moved to New York, many people from her major already had relocated there. An MSU alumni helped her obtain both of her jobs in New York.

Bowerman is one of many MSU alumni to leave the state at the same time that Gov. Jennifer Granholm seeks to double the amount of the state’s college graduates.

A new focus

Granholm has emphasized a diversified job market as the cure to the state’s brain drain for months, and reiterated her stance during a public forum Thursday. But others think the problem lies elsewhere.

Lou Glazer, the president of Ann Arbor-based think tank Michigan Future Inc., said the lack of jobs isn’t the only reason college graduates are leaving Michigan.

In 2007, 53 percent of Michigan graduates looked for a job based on the place they wanted to live, according to a survey by Michigan Future.

And one-third of students who left the state had been offered a full-time job in Michigan.

“The state government is really missing the boat when they think the only thing driving the decision is where job availability is,” Glazer said.

Paul Jaques, an internship developer for MSU, said students mainly are interested in a place that fits the type of lifestyle they seek, and that Chicago and New York are the two most common places students desire to move.

“Some students are taking jobs that aren’t even in their field,” he said.

“A student might go to Chicago and be a waitress, to be with friends, to live in a cool area and have the Chicago lifestyle.”

Rather than focusing solely on jobs, the state needs to focus on making itself more attractive and entertaining, Jaques said.

A report released Tuesday by MSU’s Land Policy Institute stated that communities need to focus more on investing in green spaces and redeveloping downtowns to attract recent college graduates.

Young workers will drive economic growth, and communities should strive to attract them, the report said.

“Every place doesn’t have everything,” said Land Policy Institute Director Soji Adelaja in a statement. “But virtually every place has something that can appeal to certain segments of the population and create prosperity for communities.”

Granholm said that although college graduates are more globalized now, she hopes they remember Michigan is their home.

“I understand young people wanting to leave; try another place, but we want people to come back,” she said.

Keith Wentzel, a 1974 MSU graduate, has lived with his wife — also a former Spartan — in Boston for the past 24 years. He has never come back.

“We spent our honeymoon out here, and we always thought if we had an opportunity to live here it would be cool, so we jumped at it,” he said.

Wentzel said he has not considered moving back to Michigan, even though he has family here and is encouraging his son to attend MSU.

“When you start to look at cities around the country and compare them with Detroit, there’s really not a whole lot of comparison,” Wentzel said.

Economic effects

Even with the allure of vibrant cities and flashier lifestyles, numbers show the economy also plays a role in leading graduates elsewhere.

In 2007, 51 percent of MSU graduates who reported employment launched their career in Michigan, said Kelley Bishop, executive director of the Office of Career Services & Placement.

However, preliminary looks at the 2008 numbers show a noticeable drop in graduates staying in the state, Bishop said.

“I was surprised … I figured it was going to be about the same,” he said. “But clearly the economy is having an impact.”

Granholm delivered the same message during Thursday’s public forum at the University of Michigan-Dearborn.

“The reason why people are leaving Michigan is because we have shed jobs,” Granholm said. “It’s all about jobs — people are going to go where the opportunity is.”

The way to encourage college graduates to stay in Michigan is to diversify the job market, she said.

Life sciences, advanced manufacturing, homeland security and alternative energy are the four areas the state should focus on expanding, Granholm said.

However, even if Michigan’s job base begins to diversify, Bishop said he has some concern that students expecting to graduate in 2009 will have a difficult time finding a job in the state.

“I know most of us are hoping that the economy will turn around enough by end of summer,” Bishop said. “My hope is that this really picks up in time for the 2009 class to still be in the ball game.”

If the recession continues another year, by the time employers begin recruiting again, they will be looking at the 2010 graduating class and the 2009 class will be overlooked, he said. This could lead more students to leave Michigan.

Lauren Wilton, an MSU education graduate student who is completing a year of intern teaching at Hope Middle School in Holt, said she would like to find a job in Michigan, but mostly is discovering that there aren’t any.

“My family and friends are here. And I think it would be hard to leave, but I’m looking everywhere,” she said.

“I’m looking out of state and overseas. I’m open to whatever.”

Future plans

MSU is involved with plans to officially launch the Intern in Michigan program next week.

The program seeks to help small and mid-sized Michigan employers connect with interns from state universities, Bishop said.

“Part of our focus is to help employers from Michigan compete with employers out of state,” he said.

Students might be leaving the state not because they have given up on finding a job in Michigan, but because they already have been recruited by an out-of-state company, he said.

MSU is a strategic university for big, brand-name companies, and Intern in Michigan could help smaller companies that are new to hiring interns feel as accommodated as the bigger companies, Bishop said.

If more students receive internships in Michigan, it could lead to more full-time jobs.

And that would attract the 47 percent of students who reported that finding a job is more important than moving to their preferred location, Glazer said.

“I wish (Granholm) well in diversifying the economy,” he said.

“But that’s not going to happen overnight, but more internships can.”

Glazer also said helping students to pay off student loans if they agree to stay in Michigan for a certain amount of time after graduation would be another smart approach for Michigan’s government.

“(It) costs money, but our sense is that it’s a priority,” he said.


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Richard
(04/17/09 8:02am)
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Interesting how Graholm is all about promoting jobs but was an intrigual part in raising the business tax in Michigan. Clearly, that was an awesome idea to keep more jobs in-state.

Let’s face it, as much as I hate to say it Michigan is not a business friendly state. We have high business taxes and the threat of unionization which keep new employers far away. If you were to open a new manufacturing plant, would you go to Michigan? Absolutely not. You would go to Tennessee or somewhere down south, where the cost of doing business is much lower. Graholm didn’t start this problem, but she certainly isn’t helping matters.

Finally, its too bad the long-term job market in Michigan is looking so dismal. Being born and raised in MI I would like to one day return, but at this point its highly doubtful.


Infrastructure
(04/17/09 10:53am)
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Something the State could do would be to fix the infrastructure! I know there needs to be more funding but Michigan roads are atrocious! I spend more time when I drive dodging pot holes than I do concentrating on my environment around me. Anyone that drives around East Lansing has seen HUGE pot holes, some almost the width of cars. Mt. Hope is a perfect example, between Hagadorn and Okemos Road. I-94 needs to be expanded to three lanes in both directions as well (between Chicago and Lansing). Why would I want to live here when I can move someplace that has better infrastructure, warmer weather and more jobs? I know the weather has a lot to do with the roads but in areas that receive similar weather conditions (Southwest Michigan) as soon as you drive into Indiana you notice a difference in roads. When I drove home for Christmas a few years ago the roads were bad (snow covered) and then all of a sudden they were clear and I thought the weather had let up until I realized I had crossed into Indiana on I-69 and they were plowing the roads…


Say what?
(04/17/09 1:41pm)
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Really Richard? Unions? That’s what you’re going with? The percentage of union employees is around 15% for private sector and 50% for government for Michigan’s workforce. Find another scapegoat.

And business tax? Michigan has been ranked the 20th best state to do business in regarding state business taxes. Not the best, but that means there’s 30 states that have higher taxes. But I’ll bite and entertain your notion: If you want to lower business taxes, then how will you make up for that loss revenue? By taxing supposed new employees?


say what say what??
(04/17/09 7:05pm)
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Say what, to say the threat of unionization has no impact on the Michigan business climate is completely ignorant. Unforunately, no manufacutring jobs will ever come back to Michigan, which saddens me.

Also, how about lowering the state budget to reduce the tax burden on Michigan taxpayers? I mean clearly we need all those ten’s of thousands of Michigan employees. What would our state do without all of them?

Say what, have an original thought. Don’t believe everything Graholm tells you.


Cynthia Hoag
(04/18/09 3:56pm)
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I have a Bachelors in Business Administration and am in an MBA program. My problems are that I have no experience and that businesses want a degree in a related field, five years experience, this skill, and that certification. Starting pay? $8-10/hour. You can’t pay back your student loans on that. Most of the jobs I have applied for are non-union and pay squat. No coincidence there. Until businesses are willing to pay a wage that enables us college grads to pay back our student loans, it will not matter how “cool” our cities are. The reality is that every other state has lower unemployment rate than Michigan. We have had umpteen governors that have not helped to diversify Michigan’s economy. I blame Granholm, Engler, Blanchard, Milliken, etc. It’s not like nobody saw this day coming.


student
(04/18/09 4:25pm)
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No. I disagree. The problem is that college graduates are not willing to make sacrifices for a lower salary. They want to win big bucks without the sacrifice of even starting their own business. It looks like they prefer to stay at home doing nothing than to work for $7/hour.

As a current college student, I have to say that, if graduate school is not an option, the key is creating your own business or keeping yourself employed for a lower salary because when the economy picks up again because people with experience will always have an edge.

Personally, I believe that the solution to the economy is a new group of entrepreneurs. Companies are just not able to hold a steady demand for college grads considering the supply there is. With debt or not, with experience or not, small companies are the solution because computers, technology, and outsourcing is reducing the positions available in all the companies. Therefore, businesses need to be more personal, diverse, and innovative.


Ben Campbell
(04/19/09 11:44am)
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Ive owned my own business for over 10 years and this economy has totally killed it. If it wasnt for my wife working for the state I would be screwed. I realized last week that there was NO way I have enough money to keep it going until the economy fixes itself. Lucky for michigan I am making house payments, and the chance of me selling my house in this market is about 9%. So I am stuck, but Michigan is gonna have to do without the best piano mover around, and I’ll be applying for work as some kinda burger flipper no doubt. If I was to do it all over again I wouldn’t do it in michigan. Road work is constant, wasteful and extremely slow. The police target commercial traffic, and with over 10years on the truck and countless pull overs, they still come up with something I never heard before EVERY TIME I get pulled over. My best guess is that the police are out of money and they think small business have it. I haven’t even touched the weather. If I was starting a new company, why would I take it to a state that has such crappy weather? The taxes are fine, and reasonable. Anyone wanna buy a house in east lansing? Yea I thought so.


say what say what say what???
(04/19/09 10:30pm)
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With private sector union jobs in Michigan constituting 15% of all jobs in the private sector, the “threat” of unionization is a boogeyman.

Lowering the state budget, all though a great idea, will in itself not replace lost revenue from business tax cuts.