State official shares economic ups, downs

By PAMELA JANSSON

pjansson@yourdailyglobe.com

Ironwood — A business roundtable at Gogebic Community College on Aug. 16 included a status report of good and bad news from Michigan’s Department of Labor and Economic Opportunity.

After a brief welcome from GCC President Chris Patritto, Jonathan Smith — LEO’s senior chief deputy director — provided a slideshow presentation that summarized recent state accomplishments, as well as goals relating to the 2025 fiscal year budget.

Smith noted the following challenges now faced by the state:

— Michigan’s labor force participation has trailed the nation since December 2001.

— Although the state formerly kept pace with high-attainment states, Michigan now is closer to low-attainment, lower-wage states like Alabama, Tennessee and Kentucky. That has been the case, said Smith, since “right before the internet bubble burst.”

— In addition, of the 4 million households in Michigan, 1.6 million (41%) struggled to afford basics like housing, child care, food, transportation and health care.

But Smith also shared the brighter side:

— Michigan’s workforce system is no. 1 in the nation in credential attainment for adults, and annual wages increase with such attainment.

— Michigan is no. 2 in the nation in helping vocational rehabilitation customers get employment.

— Smith said that Gov. Gretchen Whitmer and LEO understand that business owners cannot run their operations without workers, and that workers cannot be hired without housing.

Hence, LEO — which was created in 2015 — markets itself as providing “the connections, expertise and innovative solutions to drive continued business growth, build vibrant communities, create affordable housing, generate tourism and attract and retain key talent to fill Michigan’s vast pipeline of opportunities.”

Moreover, Smith added that the 2025 budget now includes millions of dollars targeted in a variety of directions designed to create and support business and industry throughout the state.

The specific budgetary targets are as follows:

— growing the state’s population (via a housing and community development program, a housing readiness incentive grant and rural prosperity grants)

— training the workforce (by promoting talent and growth, expanded vocational rehabilitation services and expanded opportunities for persons with disabilities)

— closing gaps in equity (via a community worker economic transition fund and foreign language access for state offices as needed)

— engaging in impactful economic investments (through a strategic outreach and attraction reserve fund, a Michigan innovation fund, minority-owned business support and a high-tech talent initiative).

In working toward its goals, Smith said that LEO partners with community colleges, universities and adult education providers and with the Center for Independent Living, as well as with community rehabilitation organizations, industry associations, labor and the network from Michigan Works!

While outlining successes from 2023, he mentioned the Train Our Workforce through Going Pro Talent Fund, which trained 173,000 workers while also achieving other objectives.

In addition, he said, the Michigan State Housing Authority implemented a “strategic housing plan to overcome complex housing barriers.” A state nonprofit relief fund also helped to “close equity gaps.”

Beyond that, Smith said the governor recently signed into law legislation “that will lower costs, power community growth, and build a brighter future to ensure any person or business can ‘make it’ in Michigan.”

He noted that part of the push is to address curriculums as needed to meet current state needs.

The Aug. 16 session led by Smith was intended to promote an interchange among key community leaders, so as “to expand opportunities for families, communities and businesses.”

Toward that end, Smith repeatedly spoke in favor of creating and promoting regional collaborations and other initiatives.