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Outward migration down, study says

January 12, 2011

Being ranked the state with the second highest rate of outward migration is not something most states celebrate.

But then again, most states aren’t Michigan.

According to a report put out by the Mackinac Center for Public Policy, 2010 was the first year since 2005 Michigan did not top the list of states with the highest rate of outbound population migration.

“Taken with the improvement of our unemployment rank, it’s another rank that — no matter how small — shows that the worst is over,” said Michael LaFaive, director of fiscal policy for the Mackinac Center.

The report was based on an annual ranking put out by United Van Lines, a moving company, about the outbound migration.

According to the report, New Jersey edged out Michigan as the state with the highest percent of traffic leaving the state. Of the people moving across state lines, 62.5 percent in New Jersey were headed out. Michigan was not far behind with 62 percent.

After having terrible economic years in 2008 and 2009, Michigan saw its first “so-so” year in quite some time, MSU economics professor Charles Ballard said.

With the restructuring of General Motors and Chrysler, as well as the stabilization of the country’s economy, Ballard said he is hopeful for what is to come.

“The worst of the crisis is probably behind us,” he said. “Michigan has a lot of assets and I’m cautiously optimistic about our future.”

After monitoring shifts in populations for the past several years, LaFaive said he noticed some key factors people look for when moving, such as amount of sunshine, taxes, job opportunities and other amenities such as parks and proximity to water.

LaFaive said one of the reasons for the decrease in Michigan’s population is its unfriendly business environment. He cited Texas as an example of a state with a positive climate for bringing in new businesses and residents.

“Michigan has one of the most complicated business taxes in the land,” he said. “Texas has far more flexible labor climate. Michigan should make changes so that it’s easier to hire people, a right to work law is one of the biggest changes that the state can make as far as that goes.”

Ballard agrees the Michigan Business Tax has affected the economy negatively but said the main reason for the economic and population decline during the past decade is more attributed to the decline of the auto industry. Ballard said a change in the tax system is necessary but could be devastating if not done correctly.

“If changes to the tax system are made and the deficit is lowered then that’s good,” he said. “But if the changes are made (and the deficit increases) then I think it would be a terrible mistake.”

Accounting graduate student Andrea Silva said her main concern was finding a job after graduation.

Silva, a Lansing native, said she mainly looked for jobs outside of Michigan.

“I accepted a job in New York City,” she said. “I was just looking for a more thriving economy, so two of the cities that I know have been experiencing job creation over the last couple years are New York and Houston.”

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