Michigan Economic Vitality Index: 12 counties boost rankings, three others decline
The Upjohn Institute has released its latest Michigan Economic Vitality Index, highlighting shifts in county rankings as well as notable changes in employment, income, and industry composition.
Twelve counties improved their overall economic vitality classification: Allegan, Clinton, Leelanau, Antrim, Benzie, Dickinson, Lapeer, Otsego, Iron, Oceana, Ontonagon and Roscommon. Many of these counties are in northern Michigan or the Upper Peninsula.
Saginaw, Alcona and Ogemaw counties saw their classifications drop, reflecting economic challenges relative to other counties.
Based on a weighted combination of factors, the economic vitality of each county is designated as competitive, stable, transitional, strained, or at risk. County level data is also available for each of the individual components of the EVI index.
Prime-age Employment Improves
Employment among prime-age workers, ages 25-54, improved in nearly all counties.
- The typical Michigan county has a prime-age employment rate of 76 percent.
- Luce County had the lowest rate at 53 percent, while Ottawa County had the highest at 86 percent.
- On average, counties increased their prime-age employment rate by 1 percent compared to the previous assessment. Luce saw the largest gain at 9 percent, while Baraga saw the largest decline at 3 percent.
- Despite its importance in the index, this measure did not significantly drive changes in rankings due to relatively uniform improvements statewide.
Median Household Income Rises Across the State
Median household income increased in nearly all counties, with the typical county reporting it at $66,488 level (in 2025$).
- The lowest median household income was $49,400 in Iosco County, while Livingston County led with $104,757.
- Counties saw an average increase of $986 from 2022 to 2023. Leelanau saw the largest gain at $7,652, while Mackinac recorded the most significant drop at $3,763.
- Counties that increased their vitality rank saw a median household income increase of $1,700 on average, while relegated or counties that didn’t change their vitality group averaged an $850 increase.
- Income growth did not consistently correlate with county promotions, suggesting other economic factors played a larger role.
Industry Shifts Drive Changes
Employment in strong Michigan sectors played a key role in county rankings.
- In 2023, 35 percent of the typical county’s workforce was employed in one of Michigan’s strong priority sectors. Education and health services are no longer considered strong sectors, leaving manufacturing, other services and logistics as the key industries. All counties saw declines in this measure due to the change of the priority sectors in the state. Counties that moved up in their classification in economic vitality generally relied more on manufacturing, logistics and other services sectors, while the counties that maintained their classification had a more even distribution of their workforce across all sectors.
- Counties saw an average decline of 12 percent in this measure, with Alcona experiencing the largest drop at 27 percent and Kalkaska, Oceana and Oscoda seeing the smallest at 3 percent.
Education Levels Continue to Rise
Associate degree attainment increased across Michigan.
- The typical county had 35 percent of residents aged 25 and older with an associate’s degree or higher.
- Washtenaw County leads at 65 percent, while Lake County is lowest at 19 percent.
- On average, counties saw a 1 percent increase in this measure. Luce had the largest gain at 3 percent, while Mackinac saw the largest decline at 3 percent.
- Some relegated counties saw strong gains in education, but the improvement was not enough to offset other economic declines.
Some Factors Were Steady
Three-year average annual population growth rate, property tax revenue, and the unemployment rate are variables included in the index, but there were no notable changes in these variables.
About the Index
The Economic Vitality Index (EVI) is designed to help government officials and economic development experts understand their community’s unique economic situation so they can better create policies and programs that foster employment, growth, and prosperity.
The EVI is based on the following factors:
- (18.1%) Median household income
- (17.2%) Unemployment rate
- (16.8%) Percent of adults aged 25 and older with an associate degree or higher
- (16.1%) Prime-age employment-to-population ratio (the percent of people aged 25–54 who are employed, relative to the total population in that age group)
- (13.6%) Three-year average annual population growth rate
- (10.9%) Percent of the employed working in a priority Michigan sector (an area of the economy the state has a relatively high regional gross product)
- (7.4%) Property tax revenue
Looking Ahead
This year’s index underscores Michigan’s evolving economy. While employment and income trends were generally positive, shifts in strong industry sectors played a major role in ranking changes. Workforce development and industry diversification will be key factors in shaping the future economic landscape across Michigan counties.