LANSING, MI. (WOWO) Michigan’s population is aging rapidly, and state experts warn the trend could create long-term challenges for the workforce, schools, tax revenues, and federal funding if population growth does not improve.
The Lead Off
- One-third of Michigan residents are now over age 55, according to state data
- Experts say retirements and declining birth rates are shrinking the state’s labor force
- Officials warn the trends could affect schools, health care systems, tax revenue, and congressional representation
Michigan population continues aging
Demographers and labor analysts presented new data to Michigan lawmakers Friday showing the state’s population continues to age faster than many others nationwide.
As of 2024, one-third of Michigan residents were over the age of 55, making Michigan the 13th oldest state in the country by median age.
State Demographer Jaclyn Butler said the trend is expected to continue for decades.
“Population aging is pronounced in Michigan, even relative to other states, and will continue impacting the labor force and potential tax revenues for the state,” Butler told lawmakers.
Michigan’s median age is now approximately 40 years old.
Labor force declines tied to retirements
Officials say the state’s labor force has seen little sustained growth since recovering from the COVID-19 pandemic.
According to Wayne Rourke, labor market information director at the Michigan Center for Data and Analytics, Michigan’s labor force has lost about 93,000 workers since March 2025.
“One of the steepest declines we’ve seen outside of a major event,” Rourke said.
Experts attribute much of the decline to baby boomer retirements, noting labor participation rates naturally decrease after age 55.
Michigan now has more than 1.8 million retirees, an increase of more than 500,000 over the past 25 years.
While sectors such as health care and government have added jobs, losses in manufacturing, transportation, utilities, and trade continue to weigh on the economy.
Michigan lost approximately 8,000 jobs over the past year, according to state officials.
Concerns for tax revenue and health care demand
Demographers warned that a growing retiree population could reduce future tax revenue because retirees generally pay less in income taxes and often qualify for additional tax deductions.
At the same time, officials expect demand for elder care and health care services to increase significantly.
“A growing share of our population is no longer working, not necessarily because of weak labor demand, but because they’ve aged into that retirement population,” Rourke said.
State officials also cautioned that Michigan’s working-age population is projected to remain flat or decline through 2050.
Declining birth rates impact schools and colleges
Michigan’s birth rate has also continued to fall, contributing to concerns about school enrollment and future workforce replacement.
According to Butler, Michigan recorded about 99,000 births in 2024, compared to annual averages exceeding 137,000 from 1980 through 2006.
The state’s population of children ages 5 to 17 is projected to decline from roughly 1.6 million today to just under 1.3 million by 2050.
Officials say about 80% of Michigan school districts have already experienced enrollment declines since 2009.
Because school funding is heavily tied to student enrollment counts, fewer students could translate into reduced state funding for districts.
During the current school year, public schools receive approximately $10,050 per student in state funding.
The demographic shifts are also affecting higher education enrollment.
“You cannot recruit students who were never born,” Siena Heights University President Cheri Betz said regarding declining college enrollment trends.
Census counts and congressional representation
Experts also warned that slower population growth could affect Michigan’s share of federal funding and congressional representation after the 2030 Census.
Federal census counts help determine allocation of more than $1.5 trillion nationally for programs including:
- Transportation
- Affordable housing
- Water infrastructure
- Education funding
Michigan has lost at least one U.S. House seat after every decennial census since 1970.
The state currently holds 13 congressional seats after losing one following the 2020 Census.
Butler urged local governments to begin preparing early for the 2030 Census process to maximize participation and population accuracy.
State leaders point to family-focused investments
Gov. Gretchen Whitmer previously created a population growth council and a Michigan Growth Office aimed at attracting workers and families to the state.
Officials highlighted recent state investments including:
- Free pre-kindergarten programs
- Free breakfast and lunch for school children
- Free community college initiatives
State Budget Director Jen Flood said the programs are intended to make Michigan more attractive to young families.
“If you’re a young family looking for a place to raise your kids, I can’t think of a better place than Michigan,” Flood said.
State Treasurer Rachael Eubanks also emphasized Michigan’s quality of life and community strengths as positives for long-term growth.
Next steps and future outlook
State officials say addressing Michigan’s demographic challenges will likely require sustained efforts to attract and retain younger workers, increase migration into the state, and support family growth.
Demographers say without those changes, the state could face increasing pressure on public services, schools, health care systems, and future economic growth in the coming decades.
The Takeaway
- Michigan officials warn the state’s rapidly aging population and shrinking labor force could create long-term economic and workforce challenges if current trends continue.
- Experts say declining birth rates, rising retirements, and slower migration growth may affect tax revenues, school enrollment, health care demand, and future federal funding allocations.
- State leaders say investments in education, family services, and workforce programs are intended to help attract younger residents and stabilize population growth ahead of the 2030 Census.
