What Is the Average Income in Michigan?
Gain clarity on Michigan's income levels. Explore how earnings are measured, current figures, and the factors influencing financial well-being across the state.
The average income in Michigan is shaped by various economic factors and measurement methods. Understanding these figures requires distinguishing between different income metrics, as each provides a unique perspective on the financial well-being of individuals and households across the state.
Key Income Measures
Average income, also known as the mean income, is calculated by summing all incomes and dividing by the number of individuals or households. This figure can be influenced significantly by a few very high incomes, potentially skewing the perception of typical earnings.
Conversely, median income represents the midpoint of all incomes, meaning half of the incomes are above this figure and half are below. The median is often considered a more accurate reflection of the typical income level for a population, as it is less affected by extreme high or low values. Both the mean and median are valuable for a comprehensive understanding of income distribution.
Income can also be categorized by the unit of measurement. Individual income refers to the earnings of a single person. Household income encompasses the combined earnings of all individuals aged 15 and older residing in a single housing unit, whether related or not. Per capita income is calculated by dividing the total income of a geographic area by its total population, including all adults and children. These distinctions are crucial for accurately interpreting financial data and understanding the economic landscape.
Current Income Figures for Michigan
The median household income in Michigan was reported as $71,149 in 2023, according to some analyses of American Community Survey (ACS) data. Another analysis of the 2023 ACS data indicates Michigan’s median household income was $69,183, reflecting a decrease from 2019 when adjusted for inflation. This figure is generally lower than the national median household income.
The average annual household income in Michigan stands at $96,299. This average is higher than the median, which is common due to the influence of higher earners on the mean calculation. For individual earnings, the median salary for full-time workers in Michigan was $58,925 in 2023, with the average salary for full-time workers at $77,002.
Michigan’s per capita income was $61,144 in 2023. There is also a notable gender disparity in individual earnings, with median earnings for men in Michigan at $58,236, significantly higher than for women at $38,458 in 2023.
Influences on Income Levels
The state’s economic structure, historically reliant on the automotive and manufacturing sectors, plays a significant role. While these industries remain important, shifts in the global economy and technological advancements have influenced their wage growth and employment levels. Manufacturing jobs in Michigan have seen a slight decline compared to national trends.
Knowledge-based industries, such as information technology, finance, and professional services, typically offer higher wages. Michigan’s ability to attract and grow these sectors is important for future income prosperity. Trade policies, such as tariffs, can also impact the state’s manufacturing and auto industries, potentially affecting costs and profitability for businesses, which can indirectly influence wages.
Educational attainment also has a direct correlation with income levels. Individuals with post-secondary degrees generally earn higher median incomes than those with only a high school diploma. Michigan lags behind the national average in the proportion of its population holding a bachelor’s degree or higher, which can constrain overall income growth.
Regional variations within Michigan also impact income figures. Current trends often show greater wealth concentration in metropolitan areas. Urban areas may exhibit clustered poverty, whereas in rural areas, poverty can be more uniformly distributed.
Sources of Income Data
Reliable income statistics for Michigan are primarily collected and disseminated by official government agencies. The U.S. Census Bureau is a fundamental source, particularly through its American Community Survey (ACS). The ACS collects detailed demographic and economic data annually, providing estimates for various income measures at state and local levels.
Another provider of economic data is the Bureau of Labor Statistics (BLS). The BLS offers information on employment, wages, and earnings across different occupations and industries.
The Federal Reserve Economic Data (FRED) database, maintained by the Federal Reserve Bank of St. Louis, aggregates and provides access to economic time series data, including income statistics from various sources.