Washtenaw County economy forecast: Continued, measured growth through 2028

April 24, 2026 Fran LeFort

Dr. Gabriel Ehrlich
University of Michigan economist Dr. Gabriel Ehrlich presents the 41st annual Washtenaw County Economic Outlook during a luncheon at Washtenaw Community College on Friday, April 24. (Photo by JD Scott)

 

Washtenaw County’s economy is forecast to see continued, measured growth through 2028, even as risks persist, according to a new report presented Friday, April 24 at Washtenaw Community College.

Report coverThe outlook points to a resilient local economy, supported by a highly educated workforce, major institutional anchors and a concentration in knowledge-based industries.

“Ultimately, we expect modest job gains, gradual improvement in unemployment and continued real wage growth over the next three years for Washtenaw County,” economists at the University of Michigan’s Research Seminar in Quantitative Economics (RSQE) wrote in the 41st annual Washtenaw County Economic Outlook. “Though meaningful risks remain, we believe that Washtenaw’s economy is well-positioned to handle the bumpy road ahead.”

The report highlights these long-term strengths as key buffers against risks including geopolitical conflict and ongoing trade and monetary policy uncertainty.

The annual outlook was presented at the President’s Leadership Recognition Luncheon sponsored by the WCC Foundation, where college leaders emphasized the institution’s role in supporting the region’s economy.

“This outlook reinforces what we see every day – that Washtenaw County’s strength comes from its people, its institutions and its ability to adapt,” said WCC President Dr. Rose B. Bellanca. “At WCC, we’re committed to preparing the skilled workforce that will help sustain that growth and support our region’s long-term economic vitality.”

Government and private higher-education services account for about 70% of the county’s gross domestic product – a stark contrast to the state overall – and are expected to drive much of the job growth through 2028. Additional gains are projected in private health and social services.

“Although these industries are likely to face a challenging federal funding environment in the coming years, Michigan’s aging population is expected to continue supporting demand,” the economists noted.

The county’s unemployment rate is projected to edge down to 4.1% – about 1 percentage point below the state average – by 2028, while total payroll employment is expected to rise modestly and surpass pre-pandemic levels.

Real wages remain a bright spot, projected to reach $76,600 by 2028, about 8.2% above the state average. However, cost-of-living-adjusted wage growth has lagged the nation’s, tempering the longer-term outlook.

The report was presented by RSQE Director Gabriel Ehrlich, Ph.D., and economist Donald Grimes.

RSQE develops U.S. and Michigan economic outlooks four times annually and has been forecasting at the University of Michigan since 1952. The group was recently recognized by Consensus Economics with its 2025 Forecast Accuracy Award for the United States.

U-M economists Jacob T. Burton, Daniil Manaenkov and Michael R. McWilliams also contributed to the forecast.

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Read the full 2026–2028 Washtenaw County Economic Outlook.

Tags: Economic Outlook, President's Leadership Recognition Luncheon, Washtenaw County, Washtenaw Economic Club

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