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Why are Michigan Graduates Leaving the State?

Submitted by SpotlightMichigan on Sunday, April 19, 20097 Comments

i-96Michigan has the dubious distinction of leading the country in departures by college graduates, with a full 44% leaving the state to find employment, according to a study done by New United Van Lines Data. Many have been quick to attribute this statistic to Michigan’s failing economy and the futility of searching for jobs in the Great Lakes States. However, the reality does not match this perception—young people are fleeing Michigan to find jobs that they could find closer to home.

Michigan’s economy is not rosy, of course. Unemployment rates lead the nation at 12.0% according to DELEG’s February statistics. The rate of Michigan’s GDP growth has declined consistently for 20 years. The auto-industry is imploding and Michigan’s future seems bleak.

And if students keep leaving, it will only get worse. University graduates and high-knowledge workers are crucial to an innovative and prosperous economy. According to MSU economist Charles Ballard, this “brain drain” is devastating.”[The grads] have huge earning potential. You are losing some of your more productive workers. That’s a real concern.” Retaining students is a matter of grave concerns and merits public attention.

Our efforts to retain graduates, therefore, should start by determining why graduates exit in the first place. I surveyed a large sample of MSU students to try to get a better feel for this, asking them specifically, “Do you want to stay in Michigan once you graduate, why yes or no?” and also more specifically, “Do you think they could find a job to their satisfaction here in Michigan?” From these answers I was able to determine a few conclusions.

First, there are a few inherent things about Michigan that probably are not going to change to keep recent graduates here. Unless, global warming speeds up, students leaving the cold state for sunshine are not going to stay. We should accept that. However, in my survey many stated weather related reasons for why they were leaving Michigan but when I followed up with where they would go Chicago (Windy City?!), Seattle (for their three days of sun a year?) and Phoenix (cool, if you’re into a dessert) were the typical answers. This means that for many who stated weather concerns, there’s probably something else missing..

Secondly, students want a city. Eventually this could begin to change but recent graduates looking for federal bureaucracies such as in Washington, D.C., International headquarters of business and international organization, such as in New York, or even a celebrity-filled city, such as L.A. just aren’t going to find what they are looking for in Michigan. Detroit may have had these things in the early 1900s but it’s not getting them back any time soon. I am an International Relations major and therefore I have a bias sampling because my friends mainly want to do international or government related things, but the most repeated answer for why they would not want to stay in Michigan is because the type of international job they were looking for, did not exist in Michigan. In general, but not always, this is probably true.

Students that are leaving because of the weather, the lack of a major metropolitan and a large void of the type of jobs they are looking for are not going to change their mind any time soon so let them leave and keep good relations.

The third and critical reason, though, is that students believe they won’t find jobs. Simply put, students and recent graduates are terrified of the job market in Michigan. Many stated that they would love to stay in Michigan because of their family connections, the small-town closeness but there’s no way they are going to find a job or the right type of job. All of this is just a distorted reality. I am a native Wisconsin resident. I sampled many of my hometown friends still in Wisconsin, a state with the same Mid-West feel and similar weather situations as Michigan and yet, not one of them said they would not be able to find a job in Wisconsin if they wanted to stay there. No one was talking about the Wisconsin economy or unemployment rates. This just proves, Wisconsin does not have this dreary perception issue that Michigan does.

But as we’ve seen, while Michigan may not be a hub for international business and government connections, international business jobs, government agencies and social non-profits with international branches can be found all over Michigan. There is also high-tech, entrepreneurial firms all over the place. As Detroit Free Press columnist states, ‘we have employers here clamoring for engineering, financial and IT talent. Importing it, even. These are not traditional big-company Michigan employers with “golden handcuffs” but smaller startups, a few hundred employees.” The fast paced, flashy companies where young workers are allowed to shine exist. Perhaps even more so than ever before. Michigan’s entrepreneurial firms are starving for engaged youth with a high knowledge level.

Our unemployment statistics provide are high enough to scare off many student job prospects. While Michigan lost 190,000 jobs requiring low education from 2001 thru 2005 it gained 46,800 jobs in education, health, and social services fields requiring advanced education. Also, if students are able to take a risk and enter a smaller start-up or even create one of their own, students can disregard the daunting 12.0%. The scary unemployment statistics actually means very little to newly entering job market applications with a college degree, who is willing to take some risks.

Students want jobs in Michigan and Michigan firms want students. So why is there this huge disconnect? In the same New United Van Lines Data of the 44% that said they left the state, 56 % of those listed the inability to find a job as a significant reason for leaving also admitted that they hadn’t even looked for a job here. Many like to announce a dooms-day scenario for any graduate that wants to pursue a career in Michigan. It’s not that bad. In order to fix this disconnect between entrepreneurial businesses and recent graduates, the Michigan Futures Seminar has begun Spotlight Michigan at http://www.spotlightmichigan.com/blog/ to highlight and connect entrepreneurial students and firms to spur one of the key steps for increased innovation and prosperity in Michigan.

We at Spotlight Michigan believe it is crucial to get the word out and advertise entrepreneurial businesses that really want to engage with Michigan youth. We believe no recent graduate should feel forced out of the state, instead we want to find ways to help students find an active and engaging job here in Michigan. Lastly, our goal is create an entrepreneurial environment where young entrepreneurs feel comfortable starting businesses that can thrive and grow throughout the state. The statistics are scary for many recent graduates, reality doesn’t have to be.

By Kelly Steffen

7 Comments »

  • tsteffen said:

    Interesting!!

  • amanda said:

    this makes me so much more optimistic about getting a job. i think many graduates are also concerned with the prospect of these start-ups not having health care. i personally would love to stay in michigan if i can find a job, but im not adverse to looking elsewhere.

    linkedin.com/avmeulen

  • Nick said:

    Thanks for the interesting article, Kelly. I like your emphasis on the value of youth and recent graduates Michigan’s economy. As a recent MSU grad who left the country for a job, I would put myself in your category of a young person pursuing a job with an international focus but that Michigan didn’t offer one.

    I’m uncomfortable with the assumption that graduates are leaving Michigan only because of a perceived lack of jobs. It feels like Phil Gramm’s argument that the US is a ‘nation of whiners’ or that this is a ‘mental recession’- are Michigan grads the biggest group of whiners then? Are graduates really fleeing Michigan because of media hype or is it because our fathers and mothers are actually laid off? It seems like Michigan graduates might have a closer connection to Michigan’s job market than many in the media.

    If your emphasis on fear of the Michigan job market is correct, we shouldn’t assume that it is just young people who are effected by this fear. The adults I know in my family who have lost their jobs are also looking for work outside of Michigan- it’s not just a ‘youth’ thing.

    Thanks for the post, though. I’m really liking the site.

  • Kelly Steffen said:

    Nick I think you are right. There is without a doubt an employment problem in Michigan for both youth and adults.

    However, I meant to convey the picture isn’t as scary as the media spins it. There are still real job opportunities for young adults, however, it does require some searching. Which as the data shows, many are not even trying to find jobs in Michigan.

    Also, young adults as well as adults in Michigan should be encouraged to start their own entrepreneurial firms or to go work for small businesses that add value to Michigan society through new innovative goods and services. This is really what will turn the state around.

    YOu are also completely right that it’s not just students to worry about. The detroit free press ran an article here: http://www.detnews.com/article/20090402/METRO/904020403/-1/rss which discusses the ramifications of the overall population exodus to the state. It is also quite frightening.

    I’m glad you are enjoying the website and hope you continue to engage in a dialogue about our articles!

  • paul said:

    keep this up guys! this is great. I need to meet with the whole group soon.

  • Don said:

    Nice positive attitude, but it will be hard to support new jobs and keeping graduates here when our economy will not support it. Also, it surely doesn’t help when our state is pretty much broke and can’t provide incentives to new business to help with startup costs. I’m all for keeping graduates here but it’s hard to support jobs with no money.

  • Bob said:

    Good article. Michigan is too cold, too cloudy, it has a wretched economy, and outside of the two major universities, there is little the state can offer, and I’m from Michigan.
    With all that said, if these small companies that supposedly need talent were to come to campus to recruit graduating MBA’s, and they were not in the auto industry, I would stay.

    Please continue disussion on the forum: link

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