“We have cautioned for years that Michigan’s aging and slowly growing population would eventually put a speed limit on job creation. In our judgment, that long-term future has now arrived,” U-M says in its annual economic forecast.

MORE NEWS: More Claims of Teacher Shortages Despite More Educators and Fewer Students

While the rest of the country appears to be gearing up for growth, Michigan is still adjusting its bifocals. The state is reported to be the 14th oldest state in the nation according to Wikipedia – with about a quarter of the state being older than 60. Economists say this demographic is finally catching up, dragging down job creation because there simply aren’t enough working-age people to fill open vacancies.

Worker shortage becomes the ultimate growth blocker.

According to U-M, Michigan’s long-anticipated population crunch has arrived, and it’s now actively limiting job growth, constrained by a shrinking labor pool – too few young workers entering the market, too many residents retiring, and not enough newcomers to replace them. This is leaving employers across sectors short-staffed and unable to fully capitalize on any gains in economic conditions.

Even industries that typically benefit from an aging population are beginning to feel the strain. According to the report, health care hiring is expected to slow as Medicaid funding tightens and federal insurance subsidies expire, while the ongoing loss of younger, highly educated workers continues to weaken wage growth and long-term economic competitiveness. The authors conclude that Michigan’s demographic squeeze is now fully underway – and will keep constraining the state’s economy unless it can attract and retain more working-age residents.

If Michigan wants a piece of the economic boom, it might need to convince more people that the state is something other than a very large, very cold retirement village with excellent lakes.