April 10, 2026
A new report from the Upjohn Institute finds that Michigan’s Upper Peninsula (UP) is navigating a complex economic transition shaped by population decline, an aging workforce, and structural labor shortages. While the region faces challenges, the report also finds that targeted interventions can leverage the UPs unique economic strengths to build long-term economic stability.
Demographic Trends
Demographic patterns in the UP are complex. The UP has seen nearly consistent population decline since 2010, apart from a modest rebound between 2020 and 2021. Despite this, the size of the labor force in the UP is holding steady at 135,000 workers, and is predicted to remain so until at least 2030.
This is made possible, in part, by an increase in the size of the labor force above the age of 65. This increase is substantial enough to make up for a sharp decline in the portion of the workforce in the “prime-age” group – ages between 25 and 54.
Economic Conditions
The region’s workforce is highly concentrated in a few key industries, including extraction, construction, and production. These industries, while often high paying and productive, are vulnerable to economic volatility and downturns in the business cycle.
However, there is considerable skill overlap between the leading industries. In the event of layoffs, such as a large mine closing, workers could theoretically find work matching their skill sets in the region. For workers without transferable skills, there is considerable job-training infrastructure available in the event of economic disruption.
Industrial Projects and Clusters
Understanding how employment is concentrated in the UP can shed further light on the dynamics behind its economy and how its workforce can shift over time. The region has significantly more farming and resource extraction as a share of its economy than the rest of the state. While it also has a greater share of its workforce in production than the United States as a whole, it is a bit behind the rest of Michigan.
Taken together, these patterns highlight a workforce structure in the UP that is highly specialized in resource-based and trade-oriented occupations. These industries can be hit hard by shifts in the business cycle, so any workforce development program must keep in mind where existing skill sets are and how they might be transferred in the event of a downturn.
Challenges and Opportunities
The report identifies both existing structural challenges facing the region and potential shocks that may occur. The tools to address many of these issues already exist.
There are 299 training programs in the UP. As national experience has shown, a strong training and retraining capacity is vital for recovering from economic shocks and maintaining the ability of the workforce to supply specialized labor.
By taking advantage of the experiences of other regions in the United States, utilizing the resources it already has, and addressing its problems head on, the UP has the capacities to improve its economic outlook and build a prosperous future.
Community-rooted strategies—such as strengthening local workforce networks, investing in adaptable training pipelines, and supporting small business diversification—can help regions respond more effectively to industry downturns. The UP has experienced such downturns in the past and has demonstrated resilience through coordinated local action. With sufficient resources and proactive planning, the region is well positioned to mobilize these community-based assets to support workers and stabilize local economies during future shocks.
To read the full report, check out the link below.
About Upjohn Regional
The Upjohn Regional team partners with economic development agencies, workforce boards, nonprofits, and local governments to provide clear, data-driven insights. Their work includes regional economic and workforce analysis, industry cluster studies, housing and healthcare assessments, and economic impact modeling. Based in Michigan but working nationwide, the team helps communities turn data into strategies that build stronger, more resilient economies.
Experts
