(The Center Square) — A quarterly economic survey of Michigan business leaders shows local leaders are concerned about labor shortages and inflation.
The survey found that labor shortages were affecting all job categories, including manufacturing, clerical and front-line positions, with 85% of survey respondents expecting to have struggling to fill vacancies over the next six to 12 months.
“We must take significant steps to address the labor shortage in our state,” Business Leaders for Michigan President and CEO Jeff Donofrio said in a statement. “Our recent benchmarking study shows Michigan’s labor force participation rate is ranked 41st in the nation and businesses are feeling the pinch. The state’s historic budget surplus gives Michigan a unique opportunity to increase the number of people with degrees and credentials and remove barriers to work, helping to address these talent shortages.
Around 49% of respondents expect inflation to continue at its current rate, and 34% expect it to rise over the next six to 12 months, while 16% say inflation will inflation should come down. The most significant effects of inflation are felt on materials and wages.
About 70% of executives say their company is doing better than before the pandemic, while 55% of executives say Michigan’s economy will stay the same, 22% say it will improve, and 24% say it will get worse over the next six years. at -12 months.
Meanwhile, 43% say the US economy will stay the same, 28% say it will improve and 28% expect it to get worse.
Other important findings include:
- 94% of executives expect their company’s employment and capital investment in Michigan to stay the same or increase over the next six to 12 months
- 75% expect their company’s real estate footprint to stay the same, while 4% expect it to grow and 21% expect it to shrink over the next six to 12 coming months.
Michigan Business Leaders conducted the internal member survey from February 1-15, 2022.
Investopedia said the activity rate measures economic health by counting the active labor force by dividing the number of people aged 16 and over employed or actively seeking work by the total population of working age.
According to the US Bureau of Labor Statistics, in the 12 months ending December 2021, the US labor force participation rate hovered around 61.5%.
Michigan has about $6 billion in federal money it plans to spend to recover from COVID. This money could attract Michigan residents to the job market, which would increase the state’s tax base and reduce the labor shortage.