Percentage of the Employed Population in Service Class Occupations Increasingly, as per capita income has grown in America, the share of

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1 Population in Service Class Occupations Increasingly, as per capita income has grown in America, the share of household expenses going toward goods, vis-à-vis services, is growing rapidly. From auto repair to lawn care and restaurants, service activity tends to be pronounced in high-population areas, especially high-income areas. It tends to cluster in areas with large populations of tourists. Service class employment has been on the rise nationally and encompasses many occupations, from hairdressers to hospital workers to financial advisers. A strong service economy is important to remaining competitive in the global economy, and is a good indicator of economic health in a community. Population in Service Class Occupations knowledge assets Sources: Florida, R., Rise of the Creative Class, New York: Basic Books. 57 MICHIGAN S CRITICAL ASSETS

2 Population in Business and Financial Occupations People who generate economic activity through the use of their knowledge and creativity are important building blocks for the next economy. Business and financial professionals are an important element of the Creative Class. These professionals are engaged in various occupations, and part of their contribution is based on their ability to think creatively. The opportunity to grow the economy through entrepreneurship and business and financial acumen is significant worldwide. Population in Business and Financial Occupations The business and financial industry sector has grown rapidly over the past 20 years. Employment in this cluster tends to concentrate in metropolitan areas and in small communities. This employment group is a growing key sector in the New Economy, and is the backbone of the nation s and world s financial systems. Sources: Florida, R., Rise of the Creative Class, New York: Basic Books. land policy institute an atlas for the new economy 58

3 Population in Management Occupations Managers are those that keep business operations running. Managers tend to cluster in and around metropolitan areas, where there are larger companies that need them. However, as is indicated on the map, they are spread across rural Michigan as well. Population in Management Occupations knowledge assets 59 MICHIGAN S CRITICAL ASSETS

4 Population in Legal Occupations Legal employment is important in the increasingly complicated regulatory environment that today s businesses and nonprofit organizations operate in. A large number of lawyers typically means that the demand for legal services is high, due to high levels of business, corporate, civil, environmental and other activities. Legal employment tends to cluster in and around large urban centers and small communities. Population in Legal Occupations land policy institute an atlas for the new economy 60

5 Population in Healthcare and Technical Occupations Healthcare practitioners and related technical occupations are important. They keep those living in a community healthy and ready to work. These occupations are mostly clustered in urban areas and small communities, but are also fairly well-distributed throughout Michigan s rural communities. Population in Healthcare and Technical Occupations knowledge assets 61 MICHIGAN S CRITICAL ASSETS

6 Population in Creative Professional Occupations Creative professionals cluster around cities. These professionals are important to the growth of the New Economy because of their knowledge base. In Michigan, the entire West Coast and our key metro areas are where they are concentrated. Creative professionals include the following: Business and financial occupations; Management occupations; Population in Creative Professional Occupations Legal occupations; and Healthcare and technical occupations. Sources: Florida, R., Rise of the Creative Class, New York: Basic Books. land policy institute an atlas for the new economy 62

7 Population in Architecture and Engineering Occupations Occupations such as architecture and engineering make most, if not all, of their contributions to the economy through creative endeavors. Their designs are central to innovation in building New Economy infrastructure in the post-industrial world. In Michigan, engineers are highly concentrated in urban areas and, in particular, in the Detroit Metro area because of the automotive industry and manufacturing. Population in Architecture and Engineering Occupations knowledge assets 63 MICHIGAN S CRITICAL ASSETS

8 Population in Arts, Design, Entertainment, Sports and Media Occupations Art and design employment is part of the Creative Class. These workers are important in creating a local culture within a community through the production of art and its application in industry. Entertainment also includes music, which can be an important part of a thriving nightlife. Art, design, entertainment, sports and media employees tend to concentrate in urban areas, but are also found in more rural areas frequented by tourists, and are an important part of the tourist industry. Population in Arts, Design, Entertainment, Sports and Media Occupations Sources: Florida, R., Rise of the Creative Class, New York: Basic Books. land policy institute an atlas for the new economy 64

9 Population in Computer and Math Occupations Information technology, communications technology and high-tech product development are key foundations of the New Economy. Those in computer and mathematical occupations are an integral part of regional competitiveness. These occupations tend to be concentrated in urban and suburban locations where New Economy industries also tend to concentrate. Population in Computer and Math Occupations knowledge assets 65 MICHIGAN S CRITICAL ASSETS

10 Population in Education, Training and Library Occupations A well-educated and trained populace is the key to being competitive in the emerging global economy. Educators and trainers are needed to teach our youth and adult workers the new skills necessary to work and function in the New Economy. These workers tend to concentrate in urban centers and small communities, but are also found in rural areas as educators in public and private schools. Knowledge centers are key areas to focus on in building a regional economy. Population in Education, Training and Library Occupations land policy institute an atlas for the new economy 66

11 Population in Life, Physical and Social Science Occupations Life, physical and social science occupations relate to teaching, research, consulting and environmental professionals, among others. The opportunities in these areas are immense, particularly where other key assets, such as hospitals, universities and research centers, already exist. Some of the major technologies that will emerge in coming years will center around information technology, tele-medicine, new medical devices and so forth. Regions can work collaboratively with existing key knowledge infrastructure managers to mount a growth strategy for the future. Life, physical and social science occupations tend to cluster in suburbs and select cities. Population in Life, Physical and Social Science Occupations knowledge assets 67 MICHIGAN S CRITICAL ASSETS

12 Population in Super Creative Core Occupations The Super Creative Core is a driving force for economic development. It consists of people engaged in occupations important in the New Economy. The Super Creative Core consists of people in the most innovative occupations involved in creating new products as defined by Richard Florida. The high demand for the Super Creative Core makes this group mobile on the landscape. They tend to choose places with amenities that match their lifestyles. This group tends to cluster in urban areas and in amenity-rich places in Michigan. The Super Creative Core includes: Population in Super Creative Core Occupations Architecture and engineering occupations; Arts, design, entertainment, sports and media occupations; Computer and math occupations; Education, training and library occupations; and Life, physical and social science occupations. Sources: Florida, R., Rise of the Creative Class, New York: Basic Books. land policy institute an atlas for the new economy 68

13 Population in Creative Class Occupations Creative Class occupations include a combination of the Super Creative Core and creative professionals. This class of workers has been shown to be very important to the New Economy by Richard Florida in his various publications. The Creative Class are people known to innovate, be creative and have a high level of knowledge within their job fields. Creative Class employees cluster in urban areas because of their attraction to amenities and to areas populated with others like themselves. The clustering of this class of workers follows the pattern for other knowledge assets. Population in Creative Class Occupations knowledge assets Sources: Florida, R., Rise of the Creative Class, New York: Basic Books. 69 MICHIGAN S CRITICAL ASSETS

14 Creative Core Distribution Creative Core Distribution Creative Creative Core Distribution Core Distribution National National Super Creative Core Distribution Summary Michigan has its fair share of the national knowledge-asset pool. However, the productivity of its knowledge assets and its ability to create value and generate prosperity seems to be more limited than in some thriving regions of the country. There is little debate over the skills and knowledge possessed by our workforce. However, challenges associated with our industrial mindset and our need to evolve or develop a more entrepreneurial mindset present possible challenges to fully leveraging talent as a driver of prosperity. National Creative Class Distribution Knowledge workers and the industries that employ them are heavily clustered in large cities and areas immediately surrounding them. Therefore, the attraction and retention of talent should be, by necessity, a key urban strategy. Rural areas are also attractive to some knowledge workers, but a key factor to attraction is the presence of other knowledge workers like them. This is why, in part, we need regional and statewide strategies to attract knowledge workers. Dynamic, high-value, knowledge-driven companies are less concerned with tax costs and more interested in talent and vibrant urban areas with the mix of amenities and multicultural dynamics. Places with such amenities can attract talent and should be a key focal point in regional strategies for growth in the New Economy. We need to cultivate more entrepreneurs here in Michigan, while also implementing strategies to attract and retain a cadre of diverse young people. This requires recruitment strategies that reach out to hubs of talent globally and bring them to Michigan. Sources: Florida, R., Rise of the Creative Class, New York: Basic Books. land policy institute an atlas for the new economy 70

15 part 6 Knowledge Assets All people have a repository of knowledge in their heads. Today, the most relevant forms of knowledge are those that require creative thinking and innovation. The capacity to drive growth in the New Economy is tied to the ability to leverage knowledge, creativity and innovation, and to expand the proportion of the workforce who rely heavily on knowledge in the performance of their jobs. The difference in the productivity of people, as it relates to prosperity, has to do with what mindset they start with and how their knowledge and creativity can be harnessed as a driver of growth. This section stratifies knowledge assets into those groupings and professions that have been shown to drive opportunity creation and, hence, new jobs. Michigan, like Pennsylvania and New York, has its fair share of knowledge and talent infrastructure and assets. However, Richard Florida s work on the Creative Class shows that certain groups drive more than average economic value and are more ready to connect to the New Economy. Michigan has seen a significant shift in its worker mix in the last 30 years. Manufacturing has declined from an employment peak around 1970 of 1.1 million (BLS, 2009) to less than 500,000 in 2009 according to the U.S. Department of Labor Bureau of Labor Statistics (BLS, 2010). Service sector jobs conversely have increased from just over 1.6 million to over 2.6 million in the same time period. This shift is irreversible, considering the dynamics of the global economy and high manufacturing costs. Strategies are needed to attract and retain the right mix of knowledge-based growth to Michigan and its regions. knowledge assets Sources: Bureau of Labor Statistics. Regional Economic Information System. U.S. Department of Labor, Available at: Bureau of Labor Statistics. Current Employment Survey. U.S. Department of Labor, Available at: 43 MICHIGAN S CRITICAL ASSETS

16 Percentage of the Population Age 25 and Older with an Associate s Degree An Associate s degree is the first step beyond a high school diploma through which people get to learn various skilled trades and basic applicable skills for the workplace. Associate s degree holders, those age 25 and older, are fairly well-distributed around the state with greater concentrations in and around cities and urban areas. So, all small and large metros tend to have an abundance of this base-level of knowledge assets. Percentage of the Population Age 25 and Older with an Associate s Degree Michigan s West Coast, the Grand Rapids area, the Kalamazoo Battle Creek region, the Greater Lansing region, the Midland Saginaw Bay City region and Southeast Michigan feature higher-than-normal concentrations of Associate s degree holders. U.S. Census Bureau, 2000 Census of Population and Housing, Summary File 3, land policy institute an atlas for the new economy 44

17 Percentage of the Population Age 25 and Older with a Bachelor s Degree Individuals with Bachelor s degrees are in various occupations based on their higher level of education. These college graduates seem to be attracted to urban and metropolitan areas within the state for a variety of reasons, including the knowledge jobs available and urban amenities. Bachelor s degree holders tend to cluster in and around Detroit, Lansing, Grand Rapids, Kalamazoo, Houghton, the West Coast of the state, Saginaw Bay and the northwestern Lower Peninsula. Institutions of higher education are active in those areas, but the high concentration suggests that these areas also feature those elements desirable to people. Percentage of the Population Age 25 and Older with a Bachelor s Degree knowledge assets U.S. Census Bureau, 2000 Census of Population and Housing, Summary File 3, MICHIGAN S CRITICAL ASSETS

18 Percentage of the Population Age 25 and Older with a Master s Degree The next step after a Bachelor s degree is further education in a Master s-level program. A Master s degree is the first level of postbaccalaureate knowledge. The concentration of Master s degree holders is even more tightly concentrated around cities than those with Bachelor s degrees, suggesting greater inter-place endowment disparities. Percentage of the Population Age 25 and Older with a Master s Degree U.S. Census Bureau, 2000 Census of Population and Housing, Summary File 3, land policy institute an atlas for the new economy 46

19 Percentage of the Population Age 25 and Older with a Professional Degree Professional degrees are post-baccalaureate terminal degrees that relate to specific occupations, such as law, education and nursing. These are highly specific educational qualifications. Professionals are higheconomic-impact people. As knowledge workers, they earn more than workers with traditional production skills and are better suited to generate knowledgedriven products and services. The pattern of concentration follows Bachelor s and Master s degrees, but is even more tightly congregated around major Michigan cities. Percentage of the Population Age 25 and Older with a Professional Degree knowledge assets U.S. Census Bureau, 2000 Census of Population and Housing, Summary File 3, MICHIGAN S CRITICAL ASSETS

20 Percentage of the Population Age 25 and Older with a Doctoral Degree Percentage of the Population Age 25 and Older with a Doctoral Degree Depending on the field, doctoral degree holders are likely to be innovators and leaders, and their cutting-edge ideas can generate significant economic impact. Doctoral degree holders tend to locate in urban and suburban communities because of the need for their skills and expertise, and because many of them work at universities, which are most often located in urban communities as well. Doctoral degree holders in Michigan are clustered in Lansing, Ann Arbor, Kalamazoo, Grand Rapids and around Detroit. U.S. Census Bureau, 2000 Census of Population and Housing, Summary File 3, land policy institute an atlas for the new economy 48

21 Percentage of the Population Age 25 or Older Having Completed Some Level of College Michigan is relatively rich in people with some college education. An educated populace is key to working in the New Economy and represents a workforce capable of learning and adapting in various advanced fields. Great concentrations of people with a college-level education helps the well-being of a community but is not necessarily a precondition for prosperity. Educated people tend to live in urban areas, which most often have jobs that demand higher levels of education. People with some level of college education cluster around Detroit, Lansing, Grand Rapids, Kalamazoo, the northwestern Lower Peninsula and along the West Coast of the state. These knowledge places are potential anchors of future prosperity. Percentage of the Population Age 25 or Older Having Completed Some Level of College knowledge assets U.S. Census Bureau, 2000 Census of Population and Housing, Summary File 3, MICHIGAN S CRITICAL ASSETS

22 Total Population (2000) Demographics matter in the New Economy. The service economy revolves around people; therefore, population is a key component of economic activity. Metro Detroit has the highest population in the state. Urban and metropolitan areas are key components for success in the future, and creating attractive places is an important strategic component of regional planning. These metro areas are where most residents in Michigan live. U.S. Census Bureau, 2000 Census of Population and Housing, Summary File 1, land policy institute an atlas for the new economy 50

23 Percentage of the Population Age 25 to 34 Certain age groups have higher economic impacts than others. Children from birth to age 18 tend to be distributed across the landscape in a similar fashion as people age 35 to 54 (their parents). People age 19 to 24 tend to be concentrated in college towns and their surrounding areas. People age 25 to 34 tend to be college graduates. Where they move to and live represent places where economic activity and quality of life are high. So, the 25 to 34 year-olds is an important age group to watch. A young and vibrant population is important to the continued health of a region. People age 25 to 34 often have new skills, ideas and disposable income that can create economic benefits in a region through new innovation and spending. This age group is distributed across the state but tends to cluster in metro areas because of the attraction of urban amenities. Many areas of the Upper Peninsula and the northeastern Lower Peninsula exhibit low concentration of the group age 25 to 34 (see Adelaja et al., 2009). Percentage of the Population Age 25 to 34 knowledge assets U.S. Census Bureau, 2000 Census of Population and Housing, Summary File 1, MICHIGAN S CRITICAL ASSETS

24 Percentage of the Population Age 55 and Older People age 55 and older are often nearing or are in retirement. This age group is often looking for a slower pace of life in a serene setting, such as that provided by natural and rural areas within Michigan. This age group also often has more disposable income than others and will spend money within the community, helping to bolster the local economy. At the same time, people age 55 and older may be unable to move from their current location because of a limited income. This group is well represented in the Thumb, in the northern Lower Peninsula, in the Upper Peninsula and along the Great Lakes shoreline. Percentage of the Population Age 55 and Older U.S. Census Bureau, 2000 Census of Population and Housing, Summary File 1, land policy institute an atlas for the new economy 52

25 Population in Farmer and Farm Manager Occupations Farm managers tend to live in rural areas where there are farms to be managed. Farm managers cluster in the Thumb area, around Lansing, the northeastern Lower Peninsula, in the central western Lower Peninsula and along the southern state border. These key agricultural areas offer their regions an opportunity to incorporate agriculture into their future planning and to help drive the next wave of innovation as Michigan moves into the green economy. Percentage of the Employed Population in Farmer and Farm Manager Occupations knowledge assets 53 MICHIGAN S CRITICAL ASSETS

26 Population in Farm, Fishing and Forestry Occupations Green jobs include those engaged in farming, fisheries and forestry. Michigan has a long history of natural resource related employment that can be positioned for the next wave of green opportunities, as many of the workforce skills related to these overlap with more traditional occupations. Population in Farm, Fishing and Forestry Occupations land policy institute an atlas for the new economy 54

27 Population in Agricultural Class Occupations Agricultural employees tend to cluster in rural areas where the land is best-suited for farming. The agricultural complex is considered one of the leading industrial complexes in Michigan. Michigan has the second most diverse crop product portfolio in the country. Agricultural employment is clustered highly in the Thumb and in the lower half of the Lower Peninsula, where the soil is generally better and the growing season is longer. There are also concentrated areas along the West Coast of the state and in the northeastern Lower Peninsula. Agriculture professionals include the following: Farmers and farm manager occupations; and Farm, fishing and forestry occupations. Population in Agricultural Class Occupations knowledge assets Sources: Florida, R., Rise of the Creative Class, New York: Basic Books. 55 MICHIGAN S CRITICAL ASSETS

28 Population in Working Class Occupations Working class employees are proportionally more concentrated in rural areas, but are found in great numbers in urban areas as well, particularly in Detroit and other areas of the state with a large manufacturing industry. The working class population is key to running manufacturing operations, whether those operations entail the production of cars or new technologies and budding industries, such as renewable energy and clean technology. Michigan s workforce is a major asset. The repositioning of that workforce through training is critical to the next economy. Population in Working Class Occupations Sources: Florida, R., Rise of the Creative Class, New York: Basic Books. land policy institute an atlas for the new economy 56