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Small Businesses Growth in Michigan is Occurring, But at What Pace?

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The growth of small businesses, or lack thereof, in Michigan varies depending on the sources.

While we know business closures have declined since the height of the pandemic and business applications continue to be submitted, anecdotes around employment in Southeastern Michigan tell a story that larger companies, which often have the capacity to offer higher wages and additional benefits, are gaining and retaining more employees than smaller businesses.

The data that we do know is that, according to a May 2022 press release from Gov. Gretchen Whitmer’s office there are 902,000 small businesses in Michigan which employ 1.9 million individuals.  We also know that unemployment in Detroit and Michigan has seen an overall decline. In September of 2022, according to the Michigan Department of Technology, Management and Budget the unemployment rate for the City of Detroit was 7 percent; the unemployment rate for the State of Michigan was 4.1 percent. These are two of the lowest unemployment rates each area has seen in over two years. When comparing unemployment rates by county between September of 2021 and September of 2022 we again see that unemployment rates for September of 2022 were down from the year prior. Overall, Livingston County had the lowest unemployment rate of 2.1 percent in September of 2022 and Wayne County experienced the largest decline with its unemployment rate changing from 7.3 percent in September of 2021 to 4 percent in September of 2022.

While low unemployment rates are one sign of a strong economy, according to a recent Detroit News article, 88 percent of respondents in a Goldman Sachs survey said small businesses are struggling compared to larger businesses. The reason? According to the survey, 42 percent of respondents said they lost employees to larger businesses that are paying more. With inflation continuing to rise, this is not surprising.

However, despite such challenges laid out by survey respondents, according to the 18th Annual Small Business Association of Michigan Entrepreneurship  Score Card, since 2020 small businesses in Michigan have outperformed the U.S. as a whole in terms of percent growth in businesses open and business revenue.

According to the scorecard, between January of 2020 and Feb. 6, 2022 small businesses in the State of Michigan have opened at a rate of 8.5 percent. In the U.S. small businesses have opened at a rate of 3.1 percent in that time frame. The Michigan rate represents an increase in small business revenue of 24.2% compared to 8% for the U.S., the report stated.

As displayed in the first chart below, the Southeast Michigan Council of Governments (SEMCOG) obtains data for the U.S. Census Bureau on small business applications in Michigan. According to this data, there 730 High-prosperity Business Applications during the week of November 18, 2022 and 250 Small Business Applications with Planned Wages. While the data for each category can shift somewhat dramatically from week-to-week, there is an overall trend of business applications in Michigan increasing since September of 2022 yet decreasing from both earlier in 2022 and since the beginning of the pandemic.

According to SEMCOG, high-Propensity Business Applications (HBA) are applications for a federal Employer Identification Number (EIN) where the characteristics of the application indicate that it is more likely to form a business with payroll. Businesses Applications with Planned Wages (WBA) are a subset of HBA that indicate a first wages-paid date, increasing the likelihood that such a business will have a paid employees.

While the data shows businesses continue to open in Michigan, business closures slowed through April of 2022 (The last time such data was available through SEMCOG) compared to early on in the pandemic. According to SEMCOG data obtained from through the Census Bureau’s Small Business Pulse Survey, 4.3 percent of the 900,000 single-location businesses sample size closed during the week of April 9, 2022. The highest percent closure of this sample size was 9.2 percent during the week of November 20, 2020.

One way to help keep small businesses open is to shop local. This is the goal of Small Business Saturday, which occurs the Saturday after Thanksgiving. This is a campaign that American Express began in 2010 to help support small businesses in the midst of the Great Recession. It has certainly seen success over the years, with 51 million shoppers in the U.S. spending more than $23 billion at small businesses in 2021, according to American Express. However, the real takeaway here should be that for every $1 spent at a small business, it is estimated that $0.68 of those funds remain in the local economy (or, for every $100 spent, $68 remains in the local economy). This is something we should consider as part of our regular shopping habits, and not just one day a year.

Thanksgiving is a Little More Costly This Year

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A traditional 10-person Thanksgiving dinner will cost the chef, on average, $64.05 total, or about $6.41 per person. This cost is up 20 percent from last year. Of the key ingredients for Thanksgiving dinner cubed stuffing has experienced the largest percent increase in cost. In 2022 it cost, on average, $3.88 for 14 ounces of cubed stuffing; this is a 70 percent increase in cost from 2021. Pie shells and whipping cream had the second highest percent increase in cost 2021 and 2022 at 26 percent.

The main ingredient for Thanksgiving is obviously turkey, and for 2021 a 16-pound turkey, on
average, costs $28.96, which is about a 20 percent increase from 2021. The only item on the traditional Thanksgiving dinner list to decrease in cost from 2021 is fresh cranberries. Twelve ounces of fresh cranberries cost $2.57 this year, a decrease of 14 percent.

The information provided in this post from the American Farm Bureau Federation.

Deer Numbers in Michigan Continue to Grow

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Deer season is open in Michigan once again, and this year it is estimated that there are more deer and fewer hunters. According to the Michigan Department of Natural Resources there are about 2 million deer in Michigan currently (2022), and 10 years ago the deer population was estimated to be about 300,000. And, as the number of deer have increased the number of deer hunting licenses in Michigan have decreased, yet the number off deer-vehicle crashes have increased.

Beginning with hunting license data, the number of hunting licenses issued in the State of Michigan has been declining for several years, at least. According to the Michigan Department of Natural Resources, there were 732,163 hunting licenses issued in 2017 and by 2021 that number declined to 641,588. For 2022, 460,436 hunting licenses has been issued as of Oct. 31, 2022.

According to a 2021 MLive article, two reasons for the decline in hunting is that both access and time is dwindling. In other words, people are growing too busy to spend time to hunt and hunting locations are declining for some too.

So, with the decline in deer hunters there has been an increase in Michigan’s deer population and an in deer-vehicle traffic accidents. In 2021, there were 52,218 deer-vehicle traffic accidents, with the greatest number of accidents happening in November, according to Michigan Traffic Crash Facts. In general, there were more crashes in the winter months when the days are shorter and when rutting season (essentially mating season occurs). Since 2011, 2019 was when there was the greatest number of deer-vehicle accidents at 55,531.

Furthermore, in 2021, of the seven counties in Southeastern Michigan, Oakland County had the highest number of accidents at 1,853. It should be noted, Oakland County also has a higher population than all the other counties except Wayne County. However, Wayne County reported 511 deer-vehicle accidents in 2021. Wayne County also has more densely populated areas.

Not only have deer-vehicle traffic crashes increased overtime, but an increase in deer populations can also damage an ecosystem as the deer can decimate certain plant species (for food), including those in residents’ yards. Concentrated deer populations are also more suspectable to disease. So, the increased visibility of deer, along with the issues they can bring, has brough about outcries from local communities for area leaders to find a fix. In Southfield, voters approved an advisory measure to reduce the city’s deer herd by human, lethal manners. This advisory deer culling measure received 62 percent of the vote in the Nov. 8, 2022 election. Other communities that have taken action to reduce its population include Ann Arbor and Grosse Ile.

The Southeast Michigan Council of Governments also has taken interest in the region’s growing deer population and its impact on residents, traffic and land management. It recently created a survey asking area how communities several questions regarding their experiences with deer in their communities and what their concerns about deer are. The survey is now closed, but SEMCOG leaders are hoping its results will help lead to additional solutions to the area deer problem.

Point in Time Count Shows Homelessness in SE Michigan Declining…Is that Really the Case?

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Funding into social service resources are slowly dwindling, and the number of those without permanent shelter may be growing. Throughout Southeastern Michigan, we know that the demand for food at local food pantries/non-profit organizations is increasing (read our recent post about that here), and, so is the need for both temporary and permanent housing, according to area homeless shelters.

Over the last few years we have experienced a global pandemic, and in reaction the federal government distributed one-time funds and approved moratoriums on policies (evictions, water shut offs and more) to help boost social services and protect some of our most vulnerable populations. As the veil of the pandemic continues to lift so are many of protections put in place to help our vulnerable populations (or funding is declining).

According to the U.S. Department of Housing and Urban Development (HUD), an individual is defined as homeless if they lack a fixed, regular, and adequate nighttime residence and their primary nighttime residence is not meant for human habitation, such as under bridges or in vehicles.

The Point In Time Count is a count of people who are experiencing homelessness on one night in January. It provides a snapshot on the homeless population in an area, but it is by no means all encompassing. While the count is unable to account for every person experiencing homelessness, it also differs on the type of homeless population that is accounted for in each area. For the eight different areas examined in the chart below only three looked at the homeless population that was only sheltered on the night of the count (Detroit, Macomb and Oakland counties); three counted the population that was both sheltered and partially unsheltered (Wayne, Genesee and Washtenaw counties); two counted the homeless population that was both sheltered and fully unsheltered (Monroe and Livingston counties).

The data for the Point In Time Counts is collected by volunteers who collect information from emergency shelters, transitional housing and safe havens. There is also an attempt to collect data on the unsheltered population, but this can be more difficult as it generally involves volunteers traveling to places where people experiencing homelessness are expected to be (under bridges, encampments, etc). 

The data below is the Point In Time Counts for the Southeastern Michigan; however data for St. Clair County could not be immediately found but data for Genesee County was included instead.

The City of Detroit has consistently had the highest documented population since at least 2015, according to the Point In Time Count. However, since 2015 the sheltered number of homeless has declined from 2,597 to 1,293 in 2021. None of the other areas in the region had homeless numbers as high as Detroit. In 2021 the area with the second highest documented number was the Pontiac/Royal Oak/Oakland County region with a sheltered only population count of 333. However, in 2021 it is believed the homeless population was closer to at least  1,228, according to data obtained from the Alliance for Housing Oakland County. According to the Point In Time Count data, the Oakland County homeless numbers have also declined.

Overall, according to the Point in Time Count data, each area examined in this blog post has had a decline in its homeless population between 2015 and 2021. Between 2020 and 2021 each area, except Macomb and Livingston counties, experienced a decline. Macomb County had a 79 person increase in its Point In Time County between 2015 and 2021 and Livingston County had a 30 person increase.

The Point In Time Count helps determine the amount of funding distributed to each community to help combat homelessness. In general, it is difficult to gain a fully accurate count because the homeless population because individuals may find temporary housing on-and-off through friends, families, shelters and vehicles and these individuals can be mobile from one place to the next. But even a snapshot count is vital to help fund programs to alleviate the cycle of homelessness, a cycle that may increase as inflation grows.

The only emergency housing shelter in Livingston County recently shuttered. According to a Michigan Radio news article, the Severe Weather Network Livingston County Homeless Shelter closed due to lack of funds and volunteers and the head of the Michigan Coalition Against Housing fears this won’t be an isolated incident. To alleviate the current homelessness issue, and the larger issue at hand, Eric Hufnagel, head of the Michigan Coalition Against Homelessness suggest public-private partnerships that will create affordable housing, allowing more individuals to permanently get out of the homelessness cycle.
The Michigan Campaign to End Homelessness also sees public-private partnerships and the development of more affordable housing as one means to ends homelessness, according to its Three-Year Action Plan to End Homelessness. The four main strategies of this foundation are to

•Increase access to affordable and attainable housing for all Michiganders experiencing homelessness.
•Use cross-sector collaboration to impact the other Social Determinants of Health that lead to housing insecurity.
•Enhance the homeless service delivery system to better serve those in need.
•Increase prevention and diversion efforts to mitigate the risk of becoming homeless.

As with many solutions, the “fix” to homelessness is multi-faceted.

Michigan’s Potential Future with Nuclear Energy

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The consumption and production of nuclear energy is not new in Michigan. In fact, according to the most recent data from Energy Information Administration, Michigan produced more nuclear energy in 2020 than any other kind of energy. At that time, Michigan had three functioning nuclear power plants- Fermi 2, Cook and Palisades. In May of 2022 though the Palisades Nuclear Power Plant, which is located on the west side of the state, ceased operations.

Now, however, Palisades’ operations might re-start. Several lawmakers in Michigan want the nuclear plant to re-open, both for energy and economic purposes. On Sept. 9, 2022 Gov. Gretchen Whitmer sent a letter to the US Department of Energy supporting the new owner of Palisades Power Plant’s (Holtec International) federal grant application to the Civil Nuclear Credit program. This program was established to save “premature” retirements of nuclear reactors due to financial hardships. While Michigan lawmakers, such as Gov. Whitmer, believe the nuclear plant is eligible for the program there are several groups, including the Michigan Sierra Club and Michigan Wildlife Conservancy that believe otherwise.

When the Palisades Nuclear Power Plant closed on May 20, 2022 it closed 11 days early because of the performance of a “control rod drive seal,” according to a press release from the Governor’s Office. It was on May 20 that its fuel supply ran out and the power purchase agreement with Consumers Energy expired. The environmental groups say that the plant isn’t eligible for the federal grant program.

Opponents say ineligibility stems from the fact the plant is in fact retired now, according to the Holland Sentinel, and the program is intended for plants that are still operating. According to the Nuclear Regulatory Commission, it has never received a request to return a nuclear plant to the grid after it has been permanently defueled. If Palisades becomes the first this could mean the 600 jobs lost when the plant closed could be brought back.

Proponents say economic development is a factor to consider when seeking to  re-open the plant as well as the amount of energy produced and consumed. They argue its long-term effects on Michigan and beyond should also be considered.

Data is not yet available to determine how the closure has impacted the state’s energy production and consumption for 2022, but according to the Governor’s Office more than 800 megawatts of nuclear energy was produced by the Palisades plant on an annual basis. And, as the charts below show, the amount of nuclear energy produced in Michigan is equal to the amount consumed.

According to the Energy Information Administration, in 2021, coal provided the largest share of Michigan’s electricity net generation (32%), followed by nuclear energy (30%) and then natural gas-fired power (27%). The data in BTUs was not available for 2021, but the charts below show that in 2021 316.7 trillion BTUs of nuclear energy was both produced and consumed in Michigan.

In the last 20 plus years the amount of nuclear energy produces, and consumed, has grown slightly (except for a production dip in 2009). In 2000, 196.9 trillion BTUs of nuclear energy was produced and consumed in Michigan, and by 2020 that number increased to 316.7 trillion BTUs. It will decline substantially now with the closing of Palisades, a loss of roughly 800 megawatts.

While the reasoning behind the closure of Palisades Nuclear Plant was based on business reasons, its reopening offers the possibility of a non-carbon-based source of electricity. Michigan has a heavy reliance on carbon-based energy.  The goal is for the state to be carbon neutral by 2050, have all coal plants closed by 2035 and to use at least 50 percent of renewable energy for consumption by 2030, according to the MiClimate Plan. Nuclear energy is not renewable, but it is a non-carbon-based source of energy. It’s advocate, the Office of Nuclear Energy, argues:
•It does not produce emissions (nuclear energy produces energy through fission);
•It utilizes a relatively small footprint to produce energy than others sources (more than 3 million solar panels are needed to produce the same amount of power as a typical commercial reactor or more than 430 wind turbines, according to the Office of Nuclear Energy);
•Nuclear fuel is dense so it produces minimal waste.
Opponents support the decommissioning of plants, including Palisades. Their reasoning considers first, the radioactive waste that remains on-site. The waste can remain on site for decades and the storage and removal of the waste is a concern because of potential spills, groundwater contamination and more.
In addition, the risk of an accident at a nuclear plant also causes grave concern for those in the plant and the surroundings of the nuclear power plant, including long-term radioactive pollution of the area—just look at Chernobyl. Recent  threats to Ukrainian nuclear plants raise the specter of new ways that nuclear disasters could occur.  Other concerns are that the mining of uranium is controversial, nuclear plants can be viewed as national security threats, and these plants cost an exorbitant amount to build.
With the pros and cons to nuclear energy fairly well known, now the federal government, the new Palisades’ Nuclear Power Plant owner and the State of Michigan must decide whether redeveloping Michigan’s nuclear energy supply is worthwhile.

Michigan’s Energy Consumption Tops its Production

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https://forms.office.com/r/WZB2vvRXNt
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In Michigan, we consume more energy, overall, than we produce, and the type of energy we produce is more limited than the types of energy sources we consume. For example, according to the Energy Information Administration (EIA), Michigan does not produce any coal for energy. However, in 2020, according to the EIA, 334.4 trillion BTUs were consumed. The coal powered energy consumed in Michigan is brought in from elsewhere, primarily Wyoming and Montana.

The largest energy source produced in Michigan is nuclear energy, with 316.7 trillion BTUs being produced in 2020. The amount of nuclear energy produced in 2020 is nearly a third more than what was produced in 2000; in 2000 196.9 BTUs of nuclear electricity was produced in Michigan. In the last 20 years, the largest amount of nuclear energy produced in Michigan was 344.2 trillion BTUs in 2011.

In 2020 there were three nuclear power plants in Michigan. However, in May of 2022 one of the nuclear power plants shut down. We will dig deeper into Michigan’s nuclear power next week.

While nuclear energy most recently reigned supreme in energy production totals, at one-point, natural gas was the largest energy source in Michigan. The amount of natural gas energy produced in Michigan reached its peak production at 312 trillion BTUs in 2000. Since then, the amount produced has steadily declined. Between 2007 and 2008 the amount of natural gas produced in Michigan declined from 275 trillion BTUs to 162 trillion BTUs. By 2020, the amount produced was 69.9 trillion BTUs. Overall, between 2007 and 2020 the amount of natural gas produced in Michigan declined by 204.7 trillion BTUs.

In 2020, Michigan ranked 19th in the amount of natural gas produced.

Crude oil production has ranged between 45 and 24 trillion BTUs since 2000, with a steady decline happening since 2013. According to the EIA, Michigan ranked 18th out of the 50 states for crude oil production in 2020. In 2020, 24 trillion BTUs of crude oil was produced.  This is a decrease from the 45.9 trillion BTUs produced in 2000.

Crude oil production in the state comes from reserves; in 2020 about 4.5 million barrels of crude oil were produced compared to the 34.7 million barrels that were produced in 1979.  Please note the chart references BTUs, while barrels of crude oil is another measurement used to detail production of this energy source.
The amount of renewable energy produced in Michigan has grown since 2000, outclimbing energy production numbers of crude oil and natural gas. In total in 2020, according to the EIA, 225 trillion BTUs of renewable energy was produced. While this was a slight decrease from 237 trillion BTUs produced two years earlier, it is still an increase overall in the amount of renewable energy produced.

The highest amount of renewable energy produced by a source was from wood and waste since 2000. In 2020 the amount of wood and waste renewable energy produced in Michigan was 99.4 trillion BTUs, a decline from the 119.5 trillion BTUs in 2018.

In 2002, biofuels did not produce any energy, and by 2020 that number increased to 43.1 trillion BTUs. This was a slight decline from the 50.8 trillion BTUs produced.
 
For “other” renewable energy sources, which include wind, solar and hydroelectric energy, there has been a steady increase in production. There was however somewhat of a spike in 2014 when the amount produced shadowed the amount of biofuel energy produced in Michigan. In 2014 there were 58 trillion BTUs of “other” renewable energy produced in Michigan; in 2020 that number increased to 82.5 trillion BTUs.
While there has been somewhat of a shift in the type of energy produced in Michigan, such as a more nuclear and renewable energy being produced and less natural gas, the overall amount produced has remained fairly stable. The gap between the amount of energy produced in Michigan and the amount consumed has also remained somewhat stable, but large. In 2000, there was a 2,559.8 trillion BTU gap between the amount of energy consumed and produced in Michigan. By 2020 that gap only decreased to 1,975.1 trillion BTUs.

As noted last week, Michigan consumes 240.2 trillion BTUs of renewable energy sources, 100.3 trillion BTUs of natural gas and more than three times those amounts in both coal and oil energy sources. With consumption levels where they are at, and the necessary shift to clean energy sources growing greater and greater, Michigan’s energy policies should also shift. There needs to be further encouragement, and enforcement, of creating more renewable energy production sources in the state, with that energy than being used in-state. Michigan should prioritize consuming the clean energy it produces and increasing such production.

Michigan’s Energy Consumption Declined in 2020

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In 2020, Michigan’s primary energy consumption was 2,610.6 trillion British Thermal Units (BTU), the lowest it has been since 1984 when it was at 2,597.4 trillion. This total consumption number is based on all categories of energy, including (but not limited to) coal, petroleum, natural gas and renewable energy sources. Between 1984 and 1999 energy consumption in Michigan continued to regularly increase; in 1999 Michigan’s total energy consumption was 3,227.4 trillion BTU. Since then, Michigan’s energy consumption decreased to 2,610.6 trillion BTU in 2020. In 2020 Michigan ranked 10th in total energy consumption out of the 50 states and the District of Columbia (this includes residential, commercial, industrial and transportation).

The decrease can be linked to several factors including, Michigan’s population decrease, the commercial sector becoming more energy savvy, the implementation and use of Utility Waste Reduction Programs and an overall awareness on energy consumption and its environmental and financial impacts. 

However, while energy consumption is declining in Michigan, energy use is still a key factor in everyday life. The chart below highlights some of the key energy sources consumed in Michigan in 2020.

**The data provided in this post is from the to the U.S. Energy Information Administration (EIA) and can be found here.***

In the State of Michigan, petroleum is the most highly consumed form of energy, according EIA.  In 2020, 1,010.9 trillion (BTU)s of petroleum were consumed in the State of Michigan with natural gas being the second highest consumed energy source at 1,003.4 trillion BTUs. For context, , petroleum represents the use of motor gasoline, distillate fuel oil, residual fuel and jet fuel and natural gas is used for heating, electricity and industrial use. One of the largest energy sources produced in Michigan is natural gas.

Coal was the third largest type of energy consumed in Michigan in 2020 at 334.4 trillion BTUs. Although coal is the third largest type of energy consumed in Michigan, coal fired-power plants provide the largest share of the electricity generated in Michigan. However, Michigan has no active coal mines, most of the coal consumed in the state is brought in by rail from the west.

Renewable energy consumption in Michigan is not even half of the consumption of petroleum, natural gas or coal, but there are continuous strides to utilize it as a reliable energy source. Biomass, all together, was the largest consumed renewable energy source in Michigan at 157.7 trillion BTUs in 2020. Biomass includes organic matter such as wood or crop waste. Wind energy is the second largest consumed renewable energy source in Michigan at 59.1 trillion BTUs.

While petroleum has long been an energy source that has been heavily consumed in Michigan, there has been shifts in its consumption numbers, along with the consumption of other energy sources. The charts below show how energy source consumption habits have changed in Michigan between 2000 and 2020.
Some key takeaways include:

Petroleum: There has been an overall increase of usage since 2012, when it was reported that 787.2 trillion BTUs were consumed. Prior to 2012, use of petroleum remained steady between 2000 and 2005. Consumption then began to drop to the 2012 low point. This pattern of decline, then resurgence, is one that follows economic activity related to the Great Recession. We will likely see a decline in consumption for 2021, and even 2022, in reflection of the pandemic and its economic impacts.
Natural Gas: Consumption of natural gas hit a low point in 2009 at 750.8 trillion BTUs. Since then though, consumption steadily increased through 2019. In 2020 there was a slight decrease, with consumption dropping from 1,055 trillion BTUs in 2019 to 1,003.5 trillion BTUs in 2020.
Biomass: Consumption of biomass as an energy source steadily increased between 2002 and 2018. In 2002 81 trillion BTUs of biomass was consumed and by 2018 that number increased to 175.7 trillion BTUs. Since 2018 consumption has been slowly declining. A decrease in consumption of wood and waste and fuel ethanol were the largest contributors to that decline.
Geothermal: The consumption of geothermal as an energy source steadily increased from 2000 to 2011, (from 1.2 trillion BTUs to 5.1 trillion BTUs) and has since leveled off, with 5.2 trillion BTUs being consumed each year between 2012 and 2020.
Wind: Consumption of wind power energy in Michigan truly took off in 2009 and has only increased since then, with the 2020 consumption number being 59.1 trillion BTUs.
Solar and hydroelectric: Solar and hydroelectric are the lowest consumed renewable energy sources in Michigan. According to the EIA, 3.2 trillion BTUs of solar energy was consumed in Michigan in 2020; this is an increase from the 0.2 trillion BTUs consumed in 2000. This was also the highest amount consumed to date.
Consumption of hydroelectric energy has been erratic, with consumption of this energy source fairly consistently increasing since 2012.

While fossil fuels are still a large part of Michigan’s energy consumption, the data shows there is a shift, albeit somewhat slow, toward renewable energy. In 2008 Michigan enacted a renewable energy standard that required the state retail electricity providers, such as DTE, to generate at least 10 percent of their energy sources from renewable energy; that requirement increased to 12.5 percent to be met in both 2019 and 2020 and 15 percent in 2020.

Even with renewable energy policies in place, the data presented here indicates that carbon dioxide producing fossil fuels are likely to continue to dominate energy consumption for many decades. Policy makers must take stronger, more immediate approaches to address the dangers of climate change, which directly impacts our environment, economy and children.

Life Expectancy Declines in Michigan, US

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The average life expectancy for Americans decreased in 2020, according to the National Center for Health Statistics, and the same goes for Michiganders.

According to the National Center for Health Statistics, which is run by the Centers for Disease Control, the average life expectancy of an American in 2019 was 79 years of age and by 2020 that decreased 77 years of age. In 2021, the National Center for Health Statistics reported the average life expectancy of an American decreased to 76 years of age. For Michigan, the Michigan Department of Community Health did not have data for 2021, but for 2020 the average life expectancy of males and females, both white and black, declined.

The first chart below shows that between 2019 and 2020 the life expectancy for females declined from 80.6 years of age to 79.2; for males the average life expectancy declined from 75.7 years of age to 73.6. Prior to the reported 2022 average life expectancy ages, the last times they were as low was in 2002 for females (79 years of age) and 1999 for males (73.4 years of age).

According to the Centers for Disease Control, the top 10 contributing factors to death for those who live in Michigan in 2020 were:

•Heart Disease (117,087 deaths)

•Cancer (21,118)

•COVID-19 (11,362)

•Accidents (6,044)

•Stroke (5,873)

•Chronic Lower Respiratory Disease (5,644)

•Alzheimer’s Disease (4,860)

•Diabetes (3,408)

•Kidney Disease (1,940)

•And Influenza, Pneumonia (1,880)

While we know the leading causes of death, it is believed by the CDC that the pandemic likely drove the recent decline in the average life expectancy for Americans, across the board. In Michigan, COVID-19 itself attributed to 11,362 deaths in 2020. We also know that the number of deaths related to heart disease, accidents, influenza/pneumonia, kidney disease, diabetes and stroke increased between 2019 and 2020, as did the drug overdose rates.

So, while the numbers above help frame the story as to why Michigan’s average life expectancy is decreasing, digging into the data another way also tells another story.

The Michigan Department of Community Health publicly presents data on the average life expectancy broken down by both sex and race. As shown above, overall, females have long had a higher life expectancy over males. However, when further breaking down the data, we see that black females and white males in Michigan have had nearly the same life expectancy since 1910. In 2020, the average life expectancy for black females in Michigan was 73.3 years of age, a decrease of 3.3 years from 2019. The average life expectancy of white men in Michigan was 75.3 years of age in 2020, a decrease of 1.3 years from 2019. White females in Michigan experienced a 0.9 decrease in average life expectancy, which was the smallest decrease of the four groups. It was black males who had the largest decrease in life expectancy between 2019 and 2020 in Michigan at 4.8 years; in 2020 the average life expectancy for black males in Michigan was reported at 64.9 years of age. The last time the average life expectancy for black males was that low, or lower, was in 1995 when it was reported to be 64.4 years of age.

According to the Michigan Department of Community Health, the top leading causes of death for black males in Michigan in 2020 were:

•Heart Disease (2,430 deaths)

•COVID-19 (1,610)

•Malignant neoplasms (1,272)

•Accidents (799)

•Assault ( 512)

Note that assault is not even among the overall the top 10 causes for Michigan citizens overall.

While we mentioned the effect COVID-19 has had on life expectancy, as well as drug overdoses and the increase mortality rates related to other diseases, it should also be noted that number of individuals with access to health care has increased in recent years. So, as the average life expectancy is decreasing, more individuals are receiving greater access to health care, an odd result, but probably the effect of COVID has overtaken the benefits of better care.

Overall, decline in life expectancy for all sexes and races is concerning as it means people are dying earlier than they should be.

Inflation Puts Strain on Food Banks, Families in Southeastern Michigan

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Rising inflation is hitting people all over the metropolitan area. For example, food banks are experiencing increased use, according to local media outlets. In the Metro-Detroit area major food banks include Gleaners Community Bank and Forgotten Harvest; these organizations not only supply food to those in need via their mobile food pantries and sponsored distribution events; they also provide food to soup kitchens, other organizations’ food pantries and other programs. According to MichiganRadio.org, in March of 2022 Gleaners Community Food Bank had about 13,000 visits to its mobile food pantries; the average number of visits in the six months prior to that was about 9,000. Feeding America West Michigan experienced a 34 percent increase in visits between February and March of 2022, according to the April 2022 Michigan Radio. A recent Model D article states that the Capuchin Soup Kitchen experienced a 25 percent increase in visits in the last year. Additionally, the same Model D Media article reports that Forgotten Harvest recorded a 30 percent increase month-to-month between April, May and June of this year. According to the article, Forgotten Harvest served 16,000 individuals in the month of June— 10,400 more than in the same month last year.

The charts below show just what inflation means to the average person. For example, in the first chart below, according to the Bureau of Labor Statistics,  the cost of meat, poultry, fish and eggs has increased by 8.4 percent in the Metro-Detroit area between July of 2021 and July of 2022. Dairy has increased by about 20 percent in that time frame and cereal and bakery goods have increased by about 19.3 percent. As we know, not only are food prices increasing but so is the cost of housing, utilities and gas. Gasoline has experienced the largest consumer price index increase in the last year at 63.9 percent.

Another way to view inflation is to understand how the value of a dollar, or $100, has changed. The chart below uses $100 in June of 2000 as a reference point to show inflation over the last 22 years. So, for example, $171.46 today would be the same as $100 in June of 2000. In other words, the purchasing power of the dollar has continually decreased, except between 2008 and 2009. Between 2020 and 2022 the purchasing power of the dollar has had the largest decrease since 2000. Between 2020 and 2022 there was a $21.52 difference in the power of the dollar. What you could buy for $149.74 in 2020 increased to $171.46. And again, these dollar figures are comparable to what $100 would be worth in 2000.

The data and anecdotal stories show just how inflation, coupled with supply chain issues, are impacting families throughout Michigan, Metro-Detroit and beyond. Seeing the writing on the wall, the Food Bank Council of Michigan received a $50 million one-time allocation in the 2022-23 State Budget to support ensuring families across Michigan could access food. These funds will increase infrastructure to better serve Michigan’s northern counties and Upper Peninsula through decreasing transportation expenses. The funding will also be used to conduct a Hunger Study, providing data to align federal, state and commodity programs to meet residents’ needs. According to the Food Bank Council, it is paying 40 percent more to keep up with food pantry demands across the state.
Additional allocations to food banks will certainly help with the increased use in food pantries, but the State Budget funding was a one-time allocation and the duration of the increased use in food pantries is unknown. The state, and federal government, though are working toward food security through other avenues as well. For example, about 1.3 million people from about 700,000 households in Michigan receive federal Supplemental Nutrition Assistance Program (SNAP) benefits through the state’s Food Assistance Program. Since the COVID pandemic began, all household have received the maximum benefits allowed for their size, and this practice continues. Following the May 2021 SNAP benefit amount increase, households of the following sizes are receiving the corresponding max benefit amount:
•
·One Person: $250  
·Two Persons: $459  
·Three Persons: $658  
·Four Persons: $835  
·Five Persons: $992  
·Six Persons: $1,190  
·Seven Persons: $1,316  
·Eight Persons: $1,504  
In August, households receiving SNAP benefits had an additional $95 added to their Bridge card to help further combat the affect inflation is having on food costs. How long this will last is unknown as federal approval of the increased SNAP benefits is necessary every month.
Schools are also working to create greater food security for students but either adopting a universal free lunch policy for all students, or at least sending free and reduced lunch applications to all households in the district. According to the Kids Count Data Center, 715,000 of Michigan public K-12 students qualified for free or reduced lunches’ income bracket in 2021. During that time though, all students—nationwide—received free lunches as part of a federal program implemented in the height of the COVID pandemic. This school year though, that policy does not exist and Michigan does not have a universal school lunch policy. Detroit Public Schools implemented one though, as have some others throughout the story. For the many districts that do not have such a policy, free and reduced lunch applications are being sent to all homes so eligible students can receive the service. For reduced meals, breakfast is $0.30 and lunch is $0.40. Income eligibility information can be found here.

We know that food banks are meeting, and serving, just some of the thousands upon thousands of individuals being impacted by the affects of inflation. However, long-term assistance to such food banks remains unknown, as direct long-term funding from state entities isn’t certain, and with economic concerns growing, donations may decrease. Food pantries serve a vital role in our community, as do programs such as SNAP and the Free and Reduced School Lunch Program. Food insecurity is an issue hundreds of thousands Americans face daily and long-term strategies to create food security need stronger framework and better funding.

To find a food bank in Michigan click here.

Housing Prices Begin to Stabilize, CPI Takes A Dip in Metro-Detroit

by Drawing Detroit | Leave a comment

Michigan’s unemployment continues to decrease, for the tenth straight month, and the labor force in the state continues to grow. This year is looking much rosier than in 2020 when great uncertainty riddled the state, and the country. With job recovery following the peak of the pandemic, and an increase in revenues from the sales and use tax and federal funding the state is predicting about a $5 million surplus. While such a surplus can viewed as a sign of improved economic times, we must also recognize inflation is on the rise, and uncertainty still looms with COVID and the war in Ukraine. Recognizing that inflation is hitting the homes of most, if not all, Gov. Gretchen Whitmer was proposed sending $500 to working Michigan families in attempt to help ease the strain on our pockets. The Republic led majority legislature is discussing a $2.5 billion plan that would cut taxes. What will happen remains unknown, especially as the project surplus is just an estimate.

But the data below does tell that story that Michigan’s economy is on the rise while the costs of goods and services is also on the rise.

The chart below provides a more detailed look at how unemployment rates are currently, compared to year ago, at the local level. Across all seven counties in Southeastern Michigan unemployment rates were lower in July of 2022 as compared to July of 2021. Wayne County experienced the largest decrease in that year, with the unemployment rate decreasing by 4.9 percent. While Wayne County had the highest unemployment rate in the region in July of 2021 (9.6%), it did not have the highest rate in July of 2022. Rather, Monroe County currently had the highest unemployment rate in the region in July of 2022 at 5.4 percent. Livingston County continued to have the lowest unemployment rate in the region at 2.2 percent.


The charts below show the percent changes in the Consumer Price Index (CPI) on a month-to-month basis and a year-to-year basis for each month in years 2019, 2020, 2021 and 2022 in the Midwest Region. The CPI is a measure that examines the weighted average of prices of consumer goods and services, such as transportation, food, energy, housing and medical care. It is calculated by taking price changes for each item in the predetermined group of goods and averaging them.

The first  chart below highlights how the CPI changed on a month-to-month basis between 2019 and 2022. Currently in 2022, the region’s prices were down 0.2 percent. The highlights for the change include:

•Food prices increasing 1.2 percent for the month of July (prices for food at home increased 1.5 percent while prices for food outside of the home increased by 0.8 percent)
•Gas prices declining 8.8 percent, which contributed to the energy index decline of 5.7 percent
•Overall, prices without considering food and energy prices, rose by 0.3 percent from the month prior.

When examining the second chart, which shows how prices changed on a year-to-year basis,  we see how prices remain higher than previous years but that there was a decline in the CPI for the month of July between 2021 and 2022.

In July of 2022 the CPI was reported to be 8.6 percent above what it was the year prior (this is lower than the 9.5 percent increased experienced between June of 2021 and 2022). Contributing factors to the continued increase in the CPI include:

•Food prices increasing 12.4 percent over the last year
•Energy prices increasing 34.1 percent over the last year.
•New and used motor vehicles increasing 8.4 percent
•And household furnishings and operations increasing 10.8 percent.
While home prices in Metro-Detroit continue to increase from one month to the next, the rate at which they are increasing is beginning to taper off. According to the Case-Shiller Home Price Index, the average price of single-family dwellings sold was $172,560 in July of 2022; this was a mere $170 higher than the average family dwelling price in June. While the month-to-month increase has slowed down, a look at data from year’s prior is a reminder just how much the average price of a home has increased. Between July of 2022 and 2021 the average price increased $19,960 and between July of 2022 and 2014 the price increased $75,220.