September 18, 2025
The Upjohn Institute for Employment Research has released a new study examining the economy of Michigan’s Upper Peninsula, providing a nuanced picture of challenges and opportunities that will shape the region’s long-term outlook.
The report, developed by the Institute’s Upjohn Regional team, tracks shifts in population, workforce dynamics, housing, healthcare, and key industries across the U.P.’s three subregions. It also lays out practical strategies that local leaders can use to strengthen the region’s economic base.
Demographic and Structural Challenges
One of the most pressing challenges identified is the decline in prime-age workers, those between 25 and 54, who form the backbone of the labor force. The people are typically at the peak of their earning years and make the top contributions to production, consumption, and innovation. Since 2015, the U.P. has lost more than 9,000 residents in this group, even as the population over 65 has grown. That shift places greater strain on both the labor market and the healthcare system.
The report also finds that while the region has a strong lineup of universities, it continues to lag Michigan and the nation in bachelor’s degree attainment, a gap that limits access to higher-wage industries.
Housing and healthcare shortages compound the problem, making it more difficult to attract and retain workers.
Strengths to Build On
Despite these challenges, the U.P. has powerful advantages. Its universities and community colleges anchor an innovation ecosystem that supports both research and workforce development. Longstanding industries such as mining, forestry, manufacturing, and tourism remain vital economic drivers, while outdoor recreation alone generates $1.6 billion in visitor spending each year.
In addition, the report notes that the U.P. has a large amount of available land and a good basic infrastructure. Sites could be prepared to attract new companies, focusing on both existing base industries and innovative newcomers.
Federally recognized tribes in the UP are vital contributors to the region’s socio-economic landscape. Yet, the report notes that meaningful collaboration with regional economic development organizations has been limited. Future strategies should prioritize building sustained, respectful engagement with tribal communities to ensure shared prosperity.
Strategies for Growth
The report recommends a mix of short- and long-term strategies. Expanding the workforce pipeline by retaining more college graduates and creating stronger local internships is one priority. Addressing shortages in housing and healthcare through targeted incentives and new construction methods is another.
The analysis also points to opportunities to grow small and mid-sized firms in emerging industry clusters, particularly those tied to the region’s universities, and to leverage abundant water and renewable energy resources to attract advanced industries. Marketing the U.P.’s quality of life and cultural identity, the report notes, can be just as important as investing in infrastructure when it comes to attracting new residents and businesses.
Lessons for Other Regions
For the Upper Peninsula, these findings serve as a roadmap for aligning local assets with future opportunities. For other regions, the report stands as an example of how independent, data-driven analysis can guide community leaders in making sound economic decisions.
“Every region has unique strengths and barriers,” said Iryna Lendel, senior director of regional economic and community development at the Institute. “By connecting the data to actionable strategies, we help communities make decisions that can shape their long-term economic vitality.”
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.
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