Population, wage growth driving economic acceleration in northwest Indiana
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe economic outlook in northwest Indiana is strong, according to a report from Indiana University Northwest.
The university’s School of Business and Economics on Friday presented the Northwest Indiana 2023 Futurecast, which showed that the region is seeing population growth for the first time in more than a decade.
“Not only is population growing, it’s growing because we have positive net migration. So people are either moving into northwest Indiana or staying here at much higher rates than they used to,” said Micah Pollak, associate professor of economics at IU Northwest. “And ultimately, that’s the single best measure of how an economy is doing and how prosperous this future is.”
In an interview for this weekend’s edition of Inside INdiana Business with Gerry Dick, Pollak said one of the major factors of the growth is that the economy is doing well for workers.
“Historically, we’ve been a manufacturing focused region, but in the last few decades, that’s shifted towards service sector jobs more and more,” he said. “And during the last few years, and during the pandemic, the service sector jobs have seen some of the largest rises in pay of any industry.”
Adjusting for inflation, wages for all workers in northwest Indiana have grown 5.8% since 2019, the report said. Specifically in accommodation and food services, wages have grown 20.6% in the same time frame.
IU Northwest notes that quality of place initiatives are also supporting economic growth in the region
Examples include the ongoing expansion of the South Shore Line. The $649 million South Shore Double Track project, which is adding a second rail line along 17-mile stretch connecting Gary and Michigan City in an effort to reduce commute times by about 20 minutes, is on track for completion next spring.
The $945 million West Lake Corridor extension, which will extend the South Shore Line from Gary south to Dyer, is expected to be complete in May 2025.
The report notes expanded green spaces, parks and trails, and other initiatives are adding to the quality of place in the region.
“Northwest Indiana and Indiana as a whole has always been very focused on a good business environment. But we’ve kind of neglected some of the human aspects of the human capital aspects,” said Pollak. “And we’ve made northwest Indiana a better place to live and raise your family in these last few decades.”
Lastly, the report notes that northwest Indiana has become more attractive for businesses. Last year, the region added a net total of 805 new businesses, while Cook County in Illinois—which has an economy 13 times larger—lost a net total of 89 businesses.
The IU Kelley School of Business unveiled its overall Futurecast report earlier this month, focusing on the entire state. School officials have traveled around Indiana presenting their findings for different regions.
Phil Powell, executive director of the Indiana Business Research Center, will appear on this weekend’s Inside INdiana Business with Gerry Dick to talk more about the report.