What does the job market look like in greater Grand Rapids?
GRAND RAPIDS, Mich. (WOOD) — Amid a cooling labor market, the greater Grand Rapids area is seeing a growing population that is more educated and diverse, a new talent report found.
Regional economic development agency The Right Place on Monday released the , assessing trends in the area's labor market and talent landscape. It's the first time the organization, which serves eight counties in West Michigan, released a talent report, Senior Vice President of Talent and Diversity TaRita Johnson said.
Read: The Right Place Talent Report 2024 (PDF)
"Our breadth and depth and opportunity to touch companies that are existing here, as well as companies coming to the area, gives us a real pulse on the talent landscape," she said, explaining that the Right Place works with more than 600 companies a year.
The report was offered as a tool for local businesses, schools and other organizations to inform best practices.
TALENT DEMOGRAPHICS
Top-line numbers in the report found that the area has a population of about 1.1 million, with a labor force of around 615,000. The greater Grand Rapids' unemployment rate sits at 3.5%, compared to the national rate of 4.1%
Like the rest of the country, the region's population is aging, with the 60 and older population increasing from 14% in 2004 to 23% in 2024, compared to national growth of 17% to 24%.
But at the same time, the area has a higher concentration of young workers under the age of 35
"Something that is really interesting to know is that greater Grand Rapids outpaces state and nation in the concentration of workers 35 and younger," Johnson said. "So at the same time where we're (seeing an) aging demographic, we still have this population of young talent right here in greater Grand Rapids that we want to retain."
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She said that's partially because there are so many colleges and universities in the area, and the fact that the area is thriving, with more to offer than just a school.
The young population is becoming more educated: Since 2019, the 25 to 34-year-old age range saw a 20% growth in those with a bachelor's degree or higher, compared to a 9% nationwide increase.
The population is also becoming more diverse. In 2004, the area's racially diverse population made up 17% of the community. That number has grown to 23.4% in 2024, and is expected to grow to 35% by 2050.
"There must be more investment making sure that we see racial and ethnic diversity at every layer of our organization, not just the ground floor," Johnson said. "We need folks in leadership. We need folks on the board. We need them consistently throughout the organization."
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Birthrates nationwide are declining, with a 3% decline from 2022 to 2023. In West Michigan, Ottawa, Kent, Ionia and Allegan counties are expected to see a 8% to 9% population increase between 2020 and 2050. Newaygo and Montcalm counties are expected to see a 4% increase, while Muskegon County is expected to see a 1% decrease. Lake, Mason and Mecosta counties are expected to see a 6 to 7% decrease. Oceana County is expected to see a 9% decrease.
LABOR MARKET 'COOLING, BUT IT'S NOT COLD'
Like the rest of the country, the area's labor market has come down from the "intensity" of the pandemic era, the report found — which is part of the reason for an increase in education levels, Johnson explained.
"The labor market is cooling, but it's not cold," she said. "As a labor market slows down, more people go to school."
One industry the report saw a fast-growing demand in is tech and AI-related jobs . Job postings in the greater Grand Rapids area that reference AI increased by 338% since 2022, the report found.
The increase comes as The Right Place works to turn the area into a tech hub , with the goal of bringing in 20,000 new tech jobs over 10 years. In a September update, The Right Place said the area has created 3,754 tech jobs since it implemented the plan in November of 2021.
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Overall, labor demand has slowed, and hiring cooled 'significantly' between 2023 and 2024. In 2023 from January to August, the greater Grand Rapids area saw just over 12,000 job gains; so far this year, it's seen around 2,000 job gains.
Local companies are also not struggling as much to recruit talent, with 38% citing talent recruitment issues between 2023 and 2024, compared to 47% between 2022 and 2023.
Still, job postings "remain near record highs," the report says. There were around 140,000 unique postings in the greater Grand Rapids area in 2022; this year, there were around 130,000.
"For candidates that are looking for jobs, sometimes it can feel like they're just applying to all of these different opportunities and nobody is getting back to them," Johnson said. "My encouragement to them is to network, to leverage tools like LinkedIn, to talk to hiring managers, alums if you've gone to a certain institution, to really try to make sure that what they're applying for actually matches the criteria of the job description. Because a lot of times ... one job can get several different applicants, so how are they standing out?"
