Michigan is a poor state. Having fallen from 16th in per capita income in 1999 to 40th in 2024. The prime cause of Michigan’s collapse is that we have gone from being a high average wage state to low average wage state. In 1999 Michigan’s average wage was seven percent above the nation’s, in 2025 our average wage is ten percent below. If we were still seven percent above our average wage would be $84,200 rather than the $70,800 it is today.
The data below is the latest available from the Quarterly Census of Employment and Wages (QCEW) which provides the broadest definition of wages from payroll jobs. QCEW defines wages as:
Wages are the total compensation paid, including bonuses, stock options, severance pay, profit distributions, the cash value of meals and lodging, tips and other gratuities, and, in some states, employer contributions to certain deferred compensation plans (such as 401(k) plans), during the calendar quarter, regardless of when the services were performed.
The states Michigan continues to want to be like, Ohio and Indiana, are also low average wage states. Both with average wages below us. Ohio at 13 percent below, falling from six percent below in 1999. And Indiana seventeen percent below, falling from ten percent below in 1999. In 2024 Ohio was 37th in per capita income, Indiaana was 38th. They too are poor states.
The two highest average wage Great Lakes States are Illinois and Minnesota. They also are by far the two highest per capita income Great Lakes states. Minnesota is 14th and Illinois is 15th. Illinois’ average wage is $80,000, two percent above the nation’s. But down from nine percent above in 1999. Minnesota’s average wage is $77,000, two percent below the nation’s. But down from the same as the nation’s in 1999.
Average wages, just like per capita income, are aligned with the proportion of adults with a BA or more. There are 11 states with average wages above the nation’s. Here in order is their rankings:
- Massachusetts 1st in average wage; 2nd in per capita income, 1st in BA attainment
- New York 2nd in average wage; 5th in per capita income, 9th in BA attainment
- Washington 3rd in average wage; 6th in per capita income, 10th in BA attainment
- California 4th in average wage; 4th in per capita income, 15th in BA attainment
- Connecticut 5th in average wage; 1st in per capita income, 7th in BA attainment
- New Jersey 6th in average wage; 7th in per capita income, 5th in BA attainment
- Colorado 7th in average wage; 9th in per capita income, 2nd in BA attainment
- Maryland 8th in average wage; 10th in per capita income, 4th in BA attainment
- New Hampshire 9th in average wage; 8th in per capita income, 8th in BA attainment
- Virginia 10th in average wage; 11th in per capita income, 6th in BA attainment
- Illinois 11th in average wage; 15th in per capita income, 12th in BA attainment
Hopefully we all agree that we want Michigan to be both a high per capita income state and a high average wage state. Just like we were in 1999 and for most of the 20th Century. All the evidence is Michigan can’t get there without substantially increasing the proportion of adults living in Michigan with a BA or more. Michigan currently is 34th in BA attainment.
