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Indiana will lead the Midwest economy this year, with job growth of 1.3%. The Hoosier State's hospitality sector is the only one in the region to have recovered all the jobs lost during the pandemic, and construction activity is steady. Indianapolis saw a surge in building permits issued late last year, which means more construction this year. Data centers are also big business. Facebook owner Meta just announced it will build a large data center in southern Indiana, across the Ohio River from Louisville, Kentucky. Google is planning a similar data center project in Fort Wayne. A Canadian-owned solar company plans to open a panel manufacturing plant in 2025 in Jeffersonville, creating 1,200 jobs, while Indianapolis is getting a new plastics recycling plant this year.
Ohio will be far behind, with job growth of 1.2% this year. Healthcare jobs are booming, and lately, the hospitality industry has been on the rise. However, most other sectors are stable or declining. The Columbus area has become a major hub for data centers with 40 so far, and tech companies plan to double their square footage. Wells Fargo is also developing a new IT/software development facility in the city. Amtrak aims to launch high-speed rail service connecting Ohio's major cities, but not until 2030. Vertical takeoff air taxis will be built near Dayton's airport, bringing 2,000 jobs.
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WisconsinEmployment growth is slowing but will reach a respectable 1.1%. It has the most jobs in the region and the workforce saw a big increase last year, which bodes well for future hiring. Construction, healthcare, hospitality and government are steadily hiring. Two major summer events – the Summerfest music festival and the Republican National Convention – promise to boost Milwaukee's local economy. 50,000 guests are expected at the RNC. Small Sun Country Airlines is expanding, while most major airlines are cutting regional routes. New routes will be announced in the state this spring.
Missouri sees slower gains during use. It can expect job growth of 0.8%. Hospitality is strong, but tech companies have laid off many workers. The closing of one of the last five aluminum smelters in the US due to rising electricity costs hurts. On the plus side, a $1.2 billion project to redevelop the St. Louis waterfront is underway, and the search for a new ballpark for the Kansas City Royals has narrowed to two locations. One downtown is favored, while the other could end up as a new mixed-use project. A 120 mph motor race on the Mississippi River near St. Louis is expected to draw 20,000 spectators in June.
Michigan it is the last on our list in the area. Employment growth will reach 0.7%. Most sectors are flat or down, except health care, although a growing labor force and potential increase in motor vehicles are positives. A survey of local business people reported more optimism than pessimism about the economy in 2024. Detroit's office space is the cheapest among major metro areas. By contrast, Ann Arbor, home of the University of Michigan, is booming, with local job growth better than 3 percent this year. In the western part of the state, the construction of a 320,000 m2 event center. for Kalamazoo will begin this fall. It is expected to be completed in 2027 and will host athletic teams from Western Michigan University.
Illinois has the highest unemployment in the region, at 4.8%. However, it should see job growth of 0.6% this year. Migration continues, but is slowing from its peak in the era of COVID. Health care is doing well, but manufacturing is flat and business services saw an alarming decline late last year. The Chicago White Sox are considering moving closer to downtown, and the Bears are considering renovating their current ballpark downtown instead of moving to the suburbs they had previously announced. More alternative energy is being developed: Nexamp will set up its headquarters in Chicago and its solar projects will meet the energy needs of 50,000 households. ComEd has 13 wind projects under development, and Pivot Energy will develop six solar projects in downstate Illinois by 2026.
This forecast first appeared in The Kiplinger Letter, which has been in circulation since 1923 and is a collection of concise weekly forecasts of business and economic trends, as well as what to expect from Washington, to help you understand what's coming make the most of it. your investments and money. Subscribe to The Kiplinger Letter.
