Here is another article documenting growth in the Michigan economy. Rogers City is growing too with new jobs being created for the first time in several years.
Susan Tompor: Michigan's job growth could outstrip nation's, economist says
By Susan Tompor
Detroit Free Press Personal Finance Columnist
Detroit Free Press Personal Finance Columnist
Michigan could still see somewhat stronger job growth than the rest of the country, thanks to the strength in manufacturing and the auto industry, according to a PNC economist.
Stuart Hoffman, chief economist for the PNC Financial Services Group, told a meeting of the Detroit Economic Club on Thursday that the broader metro Detroit region could add 35,000 to 40,000 jobs a year in the next couple of years.
On the downside, he noted that 300,000 jobs in the metro region were lost as part of the deep recession. During the recovery so far, about 75,000 jobs have been added back -- meaning that only one out of four jobs came back.
It may take another couple of years to reach a level where half of those jobs lost in the metro region have returned, he said.
But Hoffman called himself cautiously optimistic about the Michigan economy and the U.S. economy.
He's forecasting that the U.S. jobless rate could edge nearer to 7.25% by year-end, down from 7.7% for February.
He used the analogy of an economic engine that's not firing on all cylinders but receives plenty of power from consumer spending and job growth.
What's holding back the economy?
Hoffman said the economy is seeing slower growth because the federal government must work through its fiscal challenges, state and local governments need to control spending and hiring, and U.S. exports are limited by global economic troubles, including the recession in Europe.
Yet Hoffman said consumer credit is more available to fuel car sales and home sales.
Hoffman stressed that the housing recovery is real. "It's not the false start like a couple of years ago," Hoffman said.
Hoffman said PNC is forecasting that car and light-truck sales will hit 15.6 million vehicles this year -- and 16 million vehicles in 2014.
He also had a favorable outlook for gasoline prices at the pump, as long as there aren't troubles in the Middle East or other global issues.
Gas prices are likely to edge closer to $4 a gallon in the spring. "But I don't believe we're going to $4.50 to $5 a gallon," Hoffman said.
He noted that many people would prefer to see the U.S. economy firing on all cylinders -- where the country's output of goods and services grows at a 3% to 4% annual rate. And many would like to see the U.S. economy add 3 million jobs a year.
But Hoffman said the challenges ahead mean that growth is likely to be slower -- more in the 2% range for the nation's gross domestic product and the nation would likely add 2 million jobs this year.
"Call it a rut, call it a groove. It's a little bit below trend," Hoffman said.
Contact Susan Tompor: 313-222-8876 or stompor@freepress.com
Stuart Hoffman, chief economist for the PNC Financial Services Group, told a meeting of the Detroit Economic Club on Thursday that the broader metro Detroit region could add 35,000 to 40,000 jobs a year in the next couple of years.
On the downside, he noted that 300,000 jobs in the metro region were lost as part of the deep recession. During the recovery so far, about 75,000 jobs have been added back -- meaning that only one out of four jobs came back.
It may take another couple of years to reach a level where half of those jobs lost in the metro region have returned, he said.
But Hoffman called himself cautiously optimistic about the Michigan economy and the U.S. economy.
He's forecasting that the U.S. jobless rate could edge nearer to 7.25% by year-end, down from 7.7% for February.
He used the analogy of an economic engine that's not firing on all cylinders but receives plenty of power from consumer spending and job growth.
What's holding back the economy?
Hoffman said the economy is seeing slower growth because the federal government must work through its fiscal challenges, state and local governments need to control spending and hiring, and U.S. exports are limited by global economic troubles, including the recession in Europe.
Yet Hoffman said consumer credit is more available to fuel car sales and home sales.
Hoffman stressed that the housing recovery is real. "It's not the false start like a couple of years ago," Hoffman said.
Hoffman said PNC is forecasting that car and light-truck sales will hit 15.6 million vehicles this year -- and 16 million vehicles in 2014.
He also had a favorable outlook for gasoline prices at the pump, as long as there aren't troubles in the Middle East or other global issues.
Gas prices are likely to edge closer to $4 a gallon in the spring. "But I don't believe we're going to $4.50 to $5 a gallon," Hoffman said.
He noted that many people would prefer to see the U.S. economy firing on all cylinders -- where the country's output of goods and services grows at a 3% to 4% annual rate. And many would like to see the U.S. economy add 3 million jobs a year.
But Hoffman said the challenges ahead mean that growth is likely to be slower -- more in the 2% range for the nation's gross domestic product and the nation would likely add 2 million jobs this year.
"Call it a rut, call it a groove. It's a little bit below trend," Hoffman said.
Contact Susan Tompor: 313-222-8876 or stompor@freepress.com
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