Wages in UP lag behind state average

IRONWOOD - Wages in the western Upper Peninsula are higher than the eastern U.P., but both regions lag substantially behind the state average.

That was one of many labor analyses presented Thursday at Gogebic Community College to about 25 people.

Leonidas Murembya, a regional research coordinator, and Eric Guthrie, a state demographer, spoke at the two-hour session. They are from Michigan's Bureau of Labor Market Information and Strategic Initiative.

Murembya said the average wage of $18.14 in the western U.P. compares with $17.29 in the eastern U.P. and $19.33 in the central U.P., but behind the state average of $21.70.

The presentations referred to Baraga, Gogebic, Ontonagon, Iron, Houghton and Keweenaw counties.

Murembya, who said most of the statistics are around a year old, said he was surprised to learn that 33 percent of the workers in the western U.P. earn more than $3,333 per month. He said in some inner cities, that number is closer to 10 percent.

On the other hand, 31 percent of the western U.P. workers earned $1,250 a month or less, while 36 percent were between $1,251 and $3,333 per month.

The highest paid employees were educational administrators at $56.09 per hour, compared to the state average of $53.76, while dishwashers earned $8.37 per hour.

Doctors' wages were not included.

Murembya looked ahead to 2022 near the end of his presentation. He predicts job growth in the U.P. will be slower than the rest of the state, at around 995, with 50 percent coming in the services, professional and administrative support categories.

He cautioned that young people shouldn't shy away from manufacturing jobs, as many people will be retiring in that field in coming years.

New job growth will be in market research analysts and specialists, nurses and construction, among other fields.

Of the new jobs, around 50 percent will require just a high school degree or less.

The event was coordinated by the Ironwood Chamber of Commerce, GCC and the Western Upper Peninsula Planning and Development Region.

Michael Meyer of the Ironwood Chamber said he saw pluses and minuses for the area in the presentation. He noted a couple that came into his office this week moved here from Minnesota, but the wife wouldn't be included in U.P. job numbers because she's self-employed.

Murembya said the state doesn't track self-employed workers and lower paid farm employees.

Aging UP population

Guthrie said the population in the six counties dropped from 86,878 in 1996 to 80,662 in 2014.

He said the U.P. is losing a few thousand people every five years or so.

The median age of a worker in the aging six counties is 43, compared to the state average of 39.8 and national average of 37.9.

For the population to remain steady, it would take 2.1 births per couple, but the average is only 1.79 in the region. A total of 963 people died in the six counties in 2014, with 698 born.

Guthrie said the six-county region has a large population of 16- to 20-year-olds that could be a resource. For those people to stay after graduation from high school or college, "they need a place in the community," he said.

He said getting more college-aged students to stay would be a challenge for area communities.

The beauty of the area, community organizations and employment are keys to keeping the young people from moving, Guthrie said. "They need to feel connected to the community," he said.

Citing a personal note, Murembya said there are many advantages to living in the U.P., besides the scenery. He said while taking his family out to dinner in the lower peninsula would cost around $150, they could be fed here for $50.