2024
Top 10 Benchmarking Report
This benchmarking report provides an objective comparison of Michigan’s performance against the other 49 states across eight key metrics, using this data to identify the Top 10 and show where Michigan ranks. The data and insights provided in this report are a resource for Michigan’s business leaders and policymakers to identify performance strengths and opportunities and chart a collaborative and actionable course to reach the Top 10.
How Does Michigan Stack Up?
Michigan Ranks
27th
+3
Current rank in labor force participation rate and GDP per capita rose three spots from 2023
+28
Growth rank in labor force participation jumped 28 spots from 2023
In 2024, Michigan’s rank rose to 27th in the nation from 33rd the previous year. Significant three-year growth in labor force participation, along with modest improvement in GDP, have contributed to Michigan’s overall ranking increase. Business creation is a strength that carries over from 2023, with Michigan hovering just outside the Top 10 in the current and growth rankings.
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1 The business creation metric is a measure of net business growth, counting establishment “births” over “deaths” each year
2 A growth measure is excluded for the business climate index ranking
3 Adjusted to account for the regional price parities, representing the purchasing power compared to other states
What Does a Top 10 Michigan Look Like?
$6,400 more in annual purchasing power for Michigan households. This is enough money to pay for more than a year’s worth of groceries for the average Michigan household.
325,000 more Michigan workers would have a degree or certificate. On average, individuals with a degree or certificate make about $36,000 more per year, which could mean an increase of more than $11 billion in annual wages.
239,000 fewer Michiganders would be living in poverty. This is approximately the combined number of people living in Michigan’s fifth and sixth largest cities (Ann Arbor and Lansing).
2024 Top 10 States
Top 10 states demonstrate a wide mixture of performance across the eight benchmarked metrics. States that ascend to the Top 10 can consistently point to a strong talent pool and/or welcoming business climate as the anchor.
Business Leaders for Michigan did not measure growth for business climate as it is a composite of rankings.
Click on the blue states to view detailed rankings.
Top 10 States
New: Arizona, Connecticut, Virginia, Washington
Previous: Delaware, Idaho, New Hampshire, South Dakota
What is the Gap to the Top 10?
Even with encouraging three-year growth in labor force participation, Michigan remains below the national average. As Michigan experiences growth, other states are not standing still. To climb into the Top 10, Michigan must perform well above the national average to compete.
Population
Population levels impact a myriad of factors contributing to state health and vitality, including policy, resource allocation, business and income health, and social and cultural diversity. While Michigan has ranked 10th place for population among U.S. states over the last 10 years, its growth ranks near the bottom—a major push to attract and retain talent is needed for Michigan to grow.
11,011,280
Top 10 Average
974,019
10,037,261
Michigan
Business Creation
Business creation is the foundation for a stable economy, and higher levels provide expansive, diverse opportunities for our workforce. Michigan is on the heels of the Top 10 states for net business creation, trailing by just over 2,500 net new businesses. Focusing on a stronger business climate that encourages entrepreneurship, expands talent availability, removes barriers to starting and growing businesses, and ensures a competitive regulatory and cost environment will help accelerate our growth.
8,950
Top 10 Average
2,644
6,306
Michigan
Business Climate
Michigan’s current tax structure, costs of labor and perceived business attractiveness places us approximately one point from the average Top 10 state rank. Investors and entrepreneurs make decisions for business retention, expansion, creation and company policy based on costs incurred and imposed. Reducing the real and perceived cost of doing business can impact a state’s image for a prolonged period and foster business growth. Policy decisions at state and local levels that lower costs and make it easier to operate and expand can improve our rank.
23.6
Top 10 Average
24.7
-1.1
Michigan
Labor Force Participation
A growing workforce signals increased confidence in the economy, job market and talent pool for available and future jobs. Michigan’s labor force participation rate is at its highest since 2009 and is 2.6 percentage points away from the Top 10 average. We can improve in this area through expanding training and job opportunities, removing barriers to work and attracting and retaining more international and young talent.
64.5%
Top 10 Average
2.6%
61.9%
Michigan
Median Household Income
The purchasing power of households in one state relative to another showcases the degree of latitude in budgeting and living expenditures for a family or individual. Michigan ranks 35th in how far a household dollar goes, trailing the average median household income of Top 10 states by nearly $6,400. Growth in good paying jobs, K-12 education outcomes and postsecondary degrees and certifications, along with increasing affordability for everyday expenses, will help close this gap.
$68,176
Top 10 Average
$6,389
$61,786
Michigan
Percent of Population with Higher Ed Degree or Certificate
Education attainment is critical to building a talent pipeline that will spur growth and innovation statewide and increase incomes. For over a decade Michigan has seen year-over-year growth among adults who have obtained a degree, certificate, or alternative credential. To close the gap on the Top 10, Michigan must continue promoting the value of post-high school education, invest in early childhood education, improve college and university enrollment, and strengthen graduation and career connections to attract and retain more educated and young talent.
57.4%
Top 10 Average
6.4%
51.1%
Michigan
GDP Per Capita
A principal indicator of economic health and productivity is gross domestic product (GDP), higher levels of which can signal increased wealth for families across the state and a competitive business environment. Michigan currently lags the Top 10 by more than $11,000 per capita. Increased business attractiveness and investment in innovation and industries with a bright growth trajectory will improve Michigan’s competitiveness and pave the way for a higher GDP.
$60,279
Top 10 Average
$11,066
$49,213
Michigan
Poverty Rate
A state’s poverty rate represents the share of individuals with greater barriers to advancement. While Michigan’s rate dropped from a high of 17.5% in 2011 to 13.4% in 2022, we are still 2.4 percentage points higher than the Top 10 states’ average of 11%. Economic development in Michigan’s disadvantaged areas, investment in diverse jobs with a promising career path, career training opportunities, and removal of barriers to work will help close the gap.
11%
Top 10 Average
13.4%
-2.4%
Michigan
Michigan’s Progress to Top 10
Since 2009, Business Leaders For Michigan has worked with a broad coalition to improve our competitiveness and make Michigan a Top 10 state. Key achievements include enhancing economic development tools, expanding access to postsecondary education and career pathways and establishing stable growth policies. Repealing the Michigan Business Tax and phasing out the industrial personal property tax have provided business certainty and spurred job-creating investments. A decade of responsible budgeting raised Detroit’s and Michigan’s credit ratings, signaling fiscal stability and investor confidence.
Creating a future where every Michigander has a clear path to prosperity requires bold leadership and unified effort. While we celebrate our progress, reaching the Top 10 will demand even more.
Talent That Differentiates
Michigan is working to bridge the talent gap, aiming for 60% of adults to hold a credential or degree by 2030. Programs like Michigan Reconnect and the Going PRO Talent Fund are up-skilling the workforce. Civil rights protections and outreach through the Office of Global Michigan help create an inclusive, welcoming state for all.
Innovation Changing the World
Michigan’s innovation hubs—like Ford’s Michigan Central, the University of Michigan Center for Innovation, and Grand Rapids’ Medical Mile—are powering startups and driving change. Major players such as Henry Ford Health, Rocket Companies, and General Motors are keeping Michigan on the cutting edge with next-gen solutions.
Solutions to Get Us to the Top
Michigan faces challenges with an aging population, slow growth rates and below average education outcomes. To thrive, we need K-12 reforms, more inclusive college and career pathways and a competitive business climate. Our reports, including the Holistic Economic Development Framework and the Community College Report, offer strategies to build a resilient, high-wage economy and skilled talent pool for Michigan’s future. Meaningful K-12 solutions are outlined in the Launch Michigan Framework and the Growing Michigan Together Council recommendations.
Join us. For Michigan.
Now is the time to unite and build on this momentum. It’s up to all of us—communities, businesses and policymakers—to ignite change and propel Michigan into a new era. Together, we can make Michigan a Top 10 state—not just by the numbers, but through the opportunities we create, the lives we transform and the progress we achieve.
