How Michigan's Industrial Upswing Bodes Well for the Entire Nation

Market analysts watch the monthly statistics waiting for a sign that the country is heading away from
another recession. In the meantime, individual states work to boost jobs and slash their budgets, some
using measures that were once thought to be unorthodox. Despite the scramble against what seems to
be a very stubborn economy, the state of Michigan has managed to grow its manufacturing sector in
such a way that the rest of the nation has noticed. Some are even seeing it as a sign that the recession
worries are behind us.

Hesitant Relief

Just a few short years ago, the state of Michigan was the place for the dying auto industry and
manufacturing plants that were fleeing the state fast. Unemployment had climbed to more than 15
percent and the state’s budget was in dire straits. After a few strategic government interventions,
including the federal bailout of the automobile industry, Michigan began diversifying. The result is a
3.9 percent drop in unemployment and the title of the second fastest recovering economy in the U.S.
However, the state is guarded in this news. Although their unemployment rate is dropping, it is still
much higher than the national average of 9.1 percent. There is still some work to be done.

What this Means for the Nation

Manufacturing has been showing slow gains for quite some time, but the sluggishness of the sector’s
growth did seem to reflect the nation. The U.S. Economy seemed to march slowly toward recovery, led
by the manufacturing sector, but held back by housing and the even slower growth in the construction
industry. The latest news about the recovery of one of the worst state economies in the union means
the slow growth has been productive. With the worst economies accelerating toward recovery, the rest
should soon follow.

The automobile sector adds another ray of hope. The big three automakers are feeling the boost of
recovery. Chrysler reported a 27 percent increase in revenues, while General Motors announced
a predicted two percent gain. The increases in production will affect other state where the parts
for the cars are made. Thus, ramping up the assembly lines in Michigan, means increased work in
Mississippi, Indiana, Illinois and other states. These increases will lead to more jobs as well and lower
unemployment rates.

Some Waiting Left to Do

The news that Michigan is recovering, and its meaning for the rest of the nation, doesn’t mean a speedy
recovery for all. There is still a long recovery ahead before the nation, and Michigan, even reach the
employment levels and manufacturing production experienced before the recession. In the meantime,
it seems that the manufacturing industry will continue pulling the state and national economies toward

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