New report says Michigan's economy should recover by end of 2023
A respected University of Michigan economic report says the state’s economy is improving at a slow and steady pace, with a full recovery expected in 2023.
The University of Michigan Research Seminar in Quantitative Economics (RSQE) study says employment and personal income growth show remain steady.
RSQE Director Gabriel Ehrlich says federal COVID assistance allowed people to continue spending during peak periods of unemployment.
“Incomes have been up during the pandemic because of all the government support,” he told the Michigan Public Radio Network. “And I know that doesn’t cover everyone. Some people have slipped through the cracks and some people have lost income, but the government really has fired the bazooka in terms of support through the pandemic.”
He also says expanding vaccines to younger children could make teachers and parents more confident about re-opening schools and returning to work. Ehrlich says possible drags on the economy include inflation and rising COVID numbers.
“We do know, obviously, that boosters are becoming more available. We know that kids now as young as five can be vaccinated. So, you know, really, vaccination remains one of the most important keys to getting a full recovery,” he said. “ “So I do think the labor situation should improve as COVID improves.”