Inclusion indicators measure how the benefits of growth and prosperity in a metropolitan economy – specifically, changes in employment and income – are distributed among individuals. Inclusive growth enables more people to invest in their skills and to purchase more goods and services. Thus, inclusive growth can increase human capital and raise aggregate demand, boosting prosperity and growth. • Median Earnings measures the annual wage earned by the person in themiddleof a metropolitan area’s income distribution (among people at least 16 years old) (source: US Census BureauACSmicrodata) • Relative Earnings poverty measures the share of people earning less than half of the local median wage (among people at least 16 years old) (source: US Census Bureau ACS microdata) • Employment Rate , or employment-to- population ratio measures the share of individuals ages 18 to 64 who are currently employed (source: US Census Bureau ACS microdata) Inclusion by Race indicators measure the gap between the non-Hispanic white population and people of color on indicators of inclusion:median income, employment rate, and relative income poverty.
• Jobs at Young Firms captures the total number of full and part-time wage and salaried jobs at young, private-sector firms established with the last 5 years. It is a proxy for the employment impact of entrepreneurship in a metropolitan area. One important item to consider is that larger employers can fall in this category of a young firm if they exit bankruptcy or become a new entity for any particular reason. Prosperity indicators capture changes in the average wealth and income produced by an economy. When a metropolitan area grows by increasing the productivity of its workers, through innovation or by upgrading workers’ skills, for example, the value of those workers’ labor rises. As the value of labor rises, so can wages. Increases in productivity and wages are what ultimately improve living standards for workers and families. • Productivity equals GMP divided by the total number of jobs, a crude measure of metropolitan economy’s overall productivity (source: EMSI) • Standard of Living equals GMP divided by total metropolitan population (GMP per capita), which reflects a metropolitan economy’s average standard of living (source: EMSI estimates and US Census Bureau) • Average Annual Wage equals aggregate annual wages paid to workers divided by the total number of jobs (source: EMSI)
KEY TAKEAWAYS Our region has been in high-growth mode since exiting the Great Recession in 2009 and this trend is reflected in the Metro Monitor growth indicators. During this period of exponential growth, the region has also made forward strides in creating a more inclusive economy. Data indicates that our regional economy is becoming more inclusive for all people, not just white non-Hispanic residents. This trend must continue for West Michigan to remain globally competitive and maintain a sustainable regional economy that attracts talent to the region. GLOSSARY: Growth indicators measure change in the size of an MSA’s economy and the economy’s level of entrepreneurial activity. Growth creates new opportunities for individuals and can help a metropolitan economy become more eff icient. Entrepreneurship plays a critical role in growth, creating new jobs and new output; entrepreneurial activity can also indicate investors’ confidence in future growth and prosperity. • Jobs measure the total number of occupied full and part-time wage and salaried employment positions in a metropolitan economy (source: EMSI) • Gross Metro Product (GMP) measures the total value of goods and services produced in ametropolitan area including wages and profits (source: EMSI)
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DATACONOMY: BROOKINGS REPORT
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