Thank you for considering Ann Arbor, Michigan as a potential location for your business. Although Ann Arbor is a small college town in the midwest, we often find ourselves competing with much larger cities along with other college towns around the United States. Austin is a perfect example: we get lumped together when talking about large schools (UT and UM) but it’s important to remember that Austin is eight times larger than Ann Arbor. For that reason, the data have been normalized for population where possible.

This study is not meant to be marketing material; we produce plent of that already It’s meant to take a deep dive into a few crucial metrics that can help distinguish one competitor from another.

Note: all metrics are compared at the county level. Ann Arbor, MI is in Washtenaw county.

Interstate: These are people moving from one state and/or county to another state. The differential tracks the net movement i.e. people moving into one state minus the people moving out
Intrastate: These are people moving within the same state but to a different county. The differential tracks the net movement i.e. people moving into one county from another within the same state
Abroad: These are people moving into a state/county from abroad

Net Migration: Interstate differential + Intrastate differential + Movers from Abroad

In terms of net migration, Washtenaw county (Ann Arbor region) sees a higher net inflow proportional to its population that most competitor regions.

What it is:

The percentage of the total employed population of a region employed in driving industries

Why it matters:

Economies grow and prosper by their ability to make products and deliver services to people and businesses outside their geographic regions i.e. by exporting. Driving industry jobs create and support jobs in other local industries, and propel economic growth.

What it is:

This ratio measures affordability by dividing the median home price by the median income

Why it matters:

Housing cost is a key factor influencing quality of life, which affects a region's ability to attract and retain talent. Housing affordability is also a measure of inequality and access to opportunity; if the ratio is high, it can indicate a higly segregated real estate market, and a high level of income inequality. Conversely, it is also an indicator of attractiveness of a housing market.

What it is:

The national unemployment rate reflects the number of unemployed people as a percentage of labor force. The labor force participation rate (LFP for short) measures the number of people in the labor force as a percentage of civilian non-institutionalized population 16 years old and over. In other words, it is the percentage of the population either working or actively seeking work.

Why it matters:

A low unemployment rate and high labor force participation rate are signs of a well-oiled, competitive labor market. In 2018, Ann Arbor had low unemployment but also low labor force participation compared to its peers, which makes Ann Arbor an interesting place for new jobs or policy solutions.

While the previous visualization showed a snapshot of 2018, we can see the trends over the past few years for each labor metric below.