MAKE
UTILITY
ON - LINE

1.0 OVERVIEW AND BRIEF DESCRIPTION
1.1 Introduction 1
1.2 Community Description 1
2.0 POPULATION
2.1 Introduction 3
2.2 Population Trends 4
2.3 Age and Gender 5
2.4 Racial Composition 9
2.5 Household Characteristics 9
2.6 Population Projections 11
3.0 ECONOMIC BASE
3.1 Introduction 11
3.2 Area Economy 12
3.3 Civilian Labor Force Characteristics 13
3.4 Employment by Industry Group 15
3.5 Employment by Place of Work 17
3.6 Unemployment 18
3.7 Income 20
4.0 NATURAL FEATURES AND LAND USE
4.1 Natural Features 23
4.2 Land Use Patterns 24
4.3 Factors Affecting Land Use 24
4.4 Current Land Use Pattern 26
4.5 Contaminated Sites 27
4.5 City Boundaries 28
5.0 COMMUNITY FACILITIES AND SERVICES
5.1 Introduction 29
5.2 City Facilities and Services 29
5.3 Other Facilities and Services 35
6.0 HOUSING
6.1 Introduction 39
6.2 Housing Characteristics 40
6.3 Financial Characteristics 46
6.4 Home Heating Fuel 47
6.5 Building Permits 48
6.6 Public Housing Development 50
6.7 Housing Assistance programs 50
7.0 TRANSPORTATION
7.1 Introduction 51
7.2 Road System 51
7.3 Private Roads 52
7.4 National Functional Classification 53
7.5 Financing 54
7.6 Traffic Volume 55
7.7 Transportation Planning and Improvements 56
7.8 Public Transportation 57
7.9 Rail Service 57
7.10 Air Transportation 58
7.11 Non-motorized Transportation Facilities 58
8.0 FUTURE LAND USE
8.1 Introduction 59
8.2 Future Residential Development 59
8.3 Future Recreational Development 60
8.4 Other Land Use Recommendations 60
9.0 GOALS AND OBJECTIVES
9.1 Introduction 60
9.2 Goals and Objectives

1.0 OVERVIEW AND BRIEF DESCRIPTION

1.1 Introduction

This Comprehensive Plan represents the culmination of months of discussion

and study by the City of Crystal Falls Planning Commission. The plan can be

divided into two primary areas; background information, and goals and objectives,

which will guide the City's future development.

The first several chapters of the plan contain background information on

 population trends, the local economy, land use, and community facilities,

among other things. Such information is useful in forming a complete picture

of the City's growth and development over time, in other words, "where are we

now, and how did we get here?" In order to set the stage for future discussions

about goals, policies and strategies, each chapter contains a brief summary of issues

 and opportunities related to each subject area.

The last chapters of the plan are focused on the future of the City of Crystal Falls. 

These chapters attempt to address the question of "where do we want to go in the

future, and how can we achieve those goals?" The last chapters of this plan build on

the first ones, and provide a framework for guiding the City's future development.

Section 6 of the Municipal Planning Act, P.A. 285 of 1931 states that a planning

commission "shall make and adopt a master plan for the physical development of

the municipality, including any areas outside of its boundaries which, in the

commission's judgment, bear relation to the planning of the municipality." It also

provides authority for the commission to "amend, extend, or add to the plan." 

Section 7 of the Act states that the plan's general purpose is "guiding and

 accomplishing a coordinated, adjusted, and harmonious development of the

municipality and its environs which will, in accordance with present and future

needs, best promote health, safety, morals, order, convenience, prosperity, and

 general welfare, as well as efficiency and economy in the process of development;

 including, among other things, adequate provision for traffic, the promotion of safety

from fire and other dangers, adequate provision for light and air, the promotion of the

healthful and convenient distribution of population, the promotion of good civic design

and arrangement, wise and efficient expenditure of public funds, and the adequate

provision of public utilities and other public requirements."  Thus, this plan provides

 guidance for the City's elected officials, boards and commissions, and staff to use when

making future decisions.  It is a "yardstick" against which proposed projects can be

evaluated. This plan serves as the basis for a relationship between elements of all other precepts and relevant efforts pertinent to best practices within this City,  and is a reference tool which can also serve to support other planning efforts, such as recreation planning, capital improvements planning, etc.

1.2 Community Description

The City of Crystal Falls was founded in the days of iron mining and timber exploration

in Michigan's Upper Peninsula.  Located in southeastern Iron County, Crystal Falls

occupies hilly terrain both east and west of the Paint River.  In the early 1880s,

Crystal Falls was one of the primary mining towns in the Upper Peninsula.

1990 and 2000 population figures for

all Iron County jurisdictions are presented

in Table 2-1. The City of Crystal Falls

experienced a loss of 131 persons over the

 last decade, from 1,922 to 1,722 people.

This amounted to a decline of 6.8 percent,

 and continues a trend experienced over

much of the past 60 years, as shown below

in Table 2-2.

While the cities in Iron County generally

experienced a population decline during

 the 1990s, the townships surrounding

those cities increased in population. This

phenomenon was common throughout

the U.P. as well as elsewhere in Michigan,

with the incorporated communities losing

population to the neighboring townships.

2.3 Age and Gender

Median ages from the 2000 Census for selected units of government are

 shown in Table 2-3. Crystal Falls' median age has increased by 4.2

percent over the past decade to 45 years, significantly higher than the

state and national averages. Even though Crystal Falls' median age is

much higher than the state and the nation, the state and national medians

increased by a greater amount. Crystal Falls' population was already

almost 11 years older than the statewide median in 1990. Even at this

relatively high level, the City's population was still younger on average

than other areas in Iron County.

The Upper Peninsula in general tends to have a much older population

than Lower Michigan. This trend toward a higher median age is a clear

indication of the aging of the population. This aging population will in

turn affect the types of services local governments are expected to

provide, including recreational facilities, transportation, health care,

education, housing, etc. It is also related to declining school enrollment.

The increase in the median age is

due to several factors. The average

 life expectancy in the U.S. has

continued to the increase, with

 people living longer than ever

 before. Families also have fewer

children than previous generations,

 and more women are delaying

child-bearing until their 30s or

even 40s.

Analyzing the age structure of a

local population can aid in

decision making, and also provide some insight into future age structure. Table 2-4

shows Crystal Falls’, Iron County’s and the state’s population broken down into four

 broad categories: preschool age, school age, working age and retirement age.

While there can be variations between these age groups (e.g., one individual may enter

the work force at 18, while another does not begin working until after college), these

groups give a general representation of the age structure of a community.

A change that has occurred almost universally across the country in recent decades is

a shift from the school age and working age population into the retired age group. The

 proportion of individuals in the preschool and school age groups continues to shrink,

contributing to enrollment declines in local schools. Meanwhile, as the so-called "baby

boomers" reach retirement age, a smaller proportion of the population is in the

workforce and contributing to pension funds, etc. that help support retirees.

The percentage of preschool-aged children in Crystal Falls is the same as the

proportion countywide, but is more than two full percentage points below the

statewide average. This low figure indicates a continued decline in the number of

young children entering local schools, and eventually the workforce. Those in the

5 to 19 age group, or school-aged, make up 20.4 percent of the City’s total population.

 The proportion in the County as a whole was lower, while statewide over 22 percent of

the population was in this age group.

The working age population is significantly lower than the state average for both

Crystal Falls and Iron County, but the difference is most striking in the City. Less than

 half the total population is in the working age group, compared to 58.7 percent

 statewide.

Residents aged 65 and above comprise over a quarter of the City and County population.

 With 28.7 percent of the 2000 population 65 or older, the City of Crystal Falls

retirement age population is over twice the proportion statewide (12.3 percent).

Nationally, the proportion of working people compared to retirees is shrinking, and

with the preschool and school age groups decreasing, the trend can be expected to

 continue. On a national level, this is reflected in concerns about Social Security and

other programs, as the number of working Americans decreases in relationship to

retirees. Locally, the ability and/or willingness of working-age residents to support

 facilities and programs for retirees may decrease; retirees are often perceived as

being less willing to support school millages or youth programs.

Age and gender composition of the City’s population in 2000 is presented in Table 2-5.

 As with the earlier information on the local population, this information helps to form

 a picture of the types of services which may be needed in a community. For example,

 Table 2-5 reiterates the information from Table 2-4 which shows that a higher than

average segment of the population is 65 and over. This table further shows, however,

that the majority of this older population is female. This may have an impact on the

 types of housing and other services needed by this segment of the population. The

general trend is for the younger age groups to have slightly more males than females,

reflecting the fact that more males are born than females. The higher life expectancy

of females, however, is the primary cause of the high proportion of females in the

 older age groups.

The smallest 10-year age group in the City is those people aged 25 to 34 years old in

 2000. By contrast, more than twice as many individuals ages 35 to 44 were living in

Crystal Falls in 2000. Rural communities in the U.P., as elsewhere in the country,

 often complain of losing their "best and brightest" young people after high school, a

phenomenon sometimes called "brain drain." The lack of jobs in rural communities is

often cited as a factor in communities being unable to retain local youth; however,

this factor may be exaggerated. It is not uncommon for young people to leave their

hometown even when jobs are available. What the relatively high proportion of

 residents ages 35 to 44 may show is something observed in other areas in the U.P.,

that is, the tendency of those raised in a local community to return later in life due to

 a desire to raise their families in the same sort of environment they grew up in. This

 trend has not been scientifically proven, but there is significant anecdotal evidence

 that this is often the reason for people returning to the Upper Peninsula.

2.4 Racial Composition

The racial composition of Crystal Falls is overwhelmingly white, a common

characteristic of the region. Non-white residents are mainly of American Indian

descent. Non-whites as a percentage of the population increased from 0.9 percent

 in 1990 to 2.0 percent in 2000. Persons of Hispanic origin do not figure in this total,

as they can be of any race. In 2000, 14 of the 22 people who reported that they were

Hispanic characterized themselves as white.

For the first time in the 2000 Census, respondents could identify themselves and

family members as being of two or more races. There is no direct comparison for

this figure in previous years, and it is probably safe to assume that some of those

who identified themselves as a member of a single minority group in 1990 are listed

in 2000 as being of two or more races. Also in 2000, separate categories were

 established for Asian and Hawaiian or other Pacific Islander. For purposes of

comparison to previous years, these figures have been combined in Table 2-6.

2.5 Household Characteristics

Evaluation of the changes in household characteristics in a community can often

provide valuable insights about population trends. Household relationships reflect

 changing social values, economic conditions, and demographic changes such as

increased life spans and the increasing mobility of our society. Table 2-7 and Figure

2-2 illustrate trends from 1990 to 2000.

A household is defined as all persons who occupy a housing unit, according to the

 Bureau of the Census. This can include one person living alone, a single family, two

or more families living together, or any groups of related or unrelated persons

sharing living quarters. Persons in institutional or group quarters at the time of the

Census are not included in households, but instead are counted as in group quarters.

 Examples of group quarters or institutions include prisons, jails, college dormitories,

 or nursing homes.

A family consists of a householder and one or more persons living in the same

 household who are related by birth, marriage, or adoption. A non-family household

 can be one person living alone, or any combination of people not related by blood,

marriage, or adoption.

Total households within the City decreased by 2.6 percent between 1990 and 2000,

from 816 to 795. This decrease was less than the rate of loss of total population

however, which was 6.8 percent. This can be attributed to the drop in household

 size from 2.24 to 2.13 persons per household in 2000.

The number of family households decreased over the past decade, although family

households still make up nearly 60 percent of the total households in Crystal Falls.

The proportion of married-couple families decreased, while the proportion of male

or female householder with no spouse present increased. Non-family households

 increased from 1990 to 2000, with a slight increase in persons living alone. In 1990,

 283 of the 312 non-family households were one-person households. Of these, 205

were elderly persons (65 years and older) living alone, and 168 of these elderly

 households was a woman living alone. In 2000, 177 of the 293 one-person households

 was an elderly person, and 149 of them were women.

It is somewhat surprising that the number of elderly householders living alone actually

 fell slightly over the past decade. Given the increase in the proportion of elderly

residents, the expectation was that elderly households would increase. One or more

of the following factors could account for this: both spouses are living to an older age,

resulting in fewer widows and

widowers, widowed elderly are living with adult children or other family members; or

they are living in group quarters. The group quarters population is not included in the

household statistics.

In 1990, there were 98 people in group quarters in Crystal Falls, and in 2000 there

were 97. According to the 1990 Census, 86 people were in institutions, and 12 were

in other types of group quarters. In 2000, 90 were in institutions and seven in other

group quarters.

2.6 Population Projections

Population projections are useful for community planning endeavors. For instance,

 demand for certain types of public services can be anticipated by using sound

population projections. Formulating projections is complicated and fraught with

unknowns such as unforeseen economic events that can greatly influence migration.

Other considerations, like fertility and mortality data, also have an impact.

In 1996, the Michigan Department of Management and Budget prepared baseline

projections to the year 2020 for all Michigan counties using a formula that includes

the three main components of population change: births, deaths and migration. The

30-year population forecast for Iron County anticipated a continued decrease in

population, and in fact over-estimated the decrease by 2000 compared to what the

Census actually showed. Continued decreases are forecasted based on the 1990

 Census figures. Since these projections have not been updated to reflect the 2000

 Census, and because the projections based on the 1990 Census proved inaccurate,

the most recent projections are not included in this plan. When these projections are

revised to reflect the 2000 Census, however, they may prove useful for planning

purposes.

3.0 ECONOMIC BASE

3.1 Introduction

Community growth and stability are directly linked to the local economic base. Two

 major sectors make up an economy: one that provides goods and services for markets

outside the community (basic or export sector) and one that provides goods and services

 for local consumption (non-basic sector). The economic health of a community is

closely linked to the creation and retention of local basic sector jobs. Factors affecting

 a local community’s economy can be local in nature, but can also extend well beyond

local boundaries. Statewide, national and even global trends can affect the economy in

communities like Crystal Falls. In this chapter, current information from the City of

 Crystal Falls, Iron County, and the state will be presented for analysis and comparison.

Much of the economic information presented is available only at the county level. Even

where information is available for a particular community, it is often difficult to separate

 a specific community from its neighbors, due to the willingness of residents to travel

 from one community to another for employment, education, and so on. A family living

in Crystal Falls Township, for example, may include one spouse working in Iron River,

while the other works in Crystal Falls. They may utilize churches and schools in the City,

and travel outside the county to shop or for entertainment.

3.2 Area Economy

The City of Crystal Falls was founded as a result of the discovery of iron ore in the area,

 and iron mining was a mainstay of the local economy for many years. As soon as the

 Chicago and Northwestern Railroad was extended to the community, ore was shipped

to steel mills in the lower Great Lakes region, helping to fuel growth in those areas as

well. Lumbering was also important to the local economy, with the large pine forests

of the area providing logs and lumber for the building of communities throughout the

Midwest. Fur trading was important in the early days of the area as well, with the forest,

lakes and rivers yielding fur to be shipped to outside markets in exchange for money or

goods.

As the iron mines began to close to an inability to compete with the large open pit

mines with pelletizing operations, the local economy began a shift to more of a service

 economy, and the local population began to decline. This was not an uncommon

experience in the rural Midwest, as heavy industry gave way to smaller industry and

suppliers to firms in more urban areas.

Table 3-1 shows the largest employers in Iron County. As can be seen from this table,

 the largest employers are generally in the service sector, with only two manufacturers

 among this group. This trend is not uncommon in rural areas where service

employment growth has often outpaced industrial growth, and where large

industrial employers have downsized, closed, or moved from the area. Nationally,

 manufacturing employment has been virtually stable for decades, a result of several

 factors. Automation has allowed manufacturers to produce goods more efficiently,

with fewer employees. At the same time, in order to compete in the global market,

many companies have moved part or all of their operations to overseas locations

where labor is less expensive and regulations are often less burdensome.

While there are few large employers in the Iron County area, many small and

mid-sized firms are located in the area. These firms cumulatively employ many

more people than the few larger employers, and help to diversify the local economic

base.

In addition to these employers in the County, local residents may be employed in

 neighboring counties in Michigan or Wisconsin, where several other large employers

and many small employers are located.

Tourism is an industry that is becoming less seasonal in nature in recent years. Whereas

 tourism formerly occurred primarily in the summer months, skiing and snowmobiling

now draw increasing numbers of winter visitors to the Upper Peninsula. Fall color tours

 attract visitors during the fall, and in many areas gambling casinos have become a

year-round attraction. Some areas also capitalize on local history to attract tourists.

Crystal Falls contains several historic buildings, including the county courthouse and

city hall, and has a rich mining and lumbering history. Three golf courses in the area,

 along with the Ski Brule ski resort near Iron River lure visitors from outside the local

area as well.

Another change in the tourism industry has been the trend away from one long family

vacation in favor of shorter mini-vacations, often extended weekends. Recent national

events have also contributed to this trend, as some travelers are reluctant to fly and

prefer to stay closer to home. Heritage-tourism and eco-tourism have increased in

popularity. Heritage-tourism draws those interested in the historic and cultural

offerings of a community or institution. In the local area, the Iron County Heritage

Trail has been designated by the Michigan Department of Transportation as a Heritage

Route. This route allows tourists to visit a variety of attractions highlighting the history

of the local area. Eco-tourism has gained popularity among those wanting to experience

 nature through activities such as bird watching, hiking, and kayaking.

3.3 Civilian Labor Force Characteristics

Those persons 16 years and over, currently employed or currently seeking employment

(excluding persons in the armed forces) make up the civilian labor force. As the age

composition of a local population changes, changes occur in the nature of the labor

force. The labor force can also change seasonally, such as during the summer when

high school and college students become part of the work force, and seasonal businesses

 such as resorts expand their workforce. Knowledge of a community’s labor force is

helpful in understanding the local economy. It is useful to know what skills a local

labor force may have, how many people are employed or seeking employment, etc.,

 in order to provide this information to firms which may be interested in locating in or

 expanding in a community.

The decennial Census provides information about the City’s labor force. Although

this information becomes more outdated later in the decade, it still is the most readily

available characterization of the local labor force. In 1990, according to the Census,

47.9 percent of the City’s population 16 years of age and older was in the labor force

(labor force participation rate). In 2000 the labor force participation rate was 47.8 percent.

Iron County’s labor force participation rate was 47.9 percent in 1990 and 51.1 percent in

2000. Labor force participation rate at the state level was 64.1 percent in 1990 and 64.6 in

2000. The relatively low labor force participation rates in the City and County are in all

likelihood related to the age structure of the population as discussed in Chapter 2. The

 relatively older population, compared to the state as a whole, would include a higher

 percentage of retirees who are no longer in the labor force. Later in this chapter

 information on the source of local income will be analyzed, and this data would appear

 to support this assumption (see Table 3-8).

Comparative employment information and labor force comparisons by gender are

provided in Table 3-2. In 1990 the City’s labor force consisted of 55.0 percent males

and 45.0 percent females. By 2000, the labor force was nearly equally divided

between males and females, at 50.3 and 49.7 percent, respectively. The proportion of

employed and unemployed males and females, however, is not so evenly divided,

with women showing a lower unemployment rate than men. The increasing proportion

 of women in the labor force over the past 10 years is typical of most communities,

 where the labor force participation rate of women has increased significantly in

recent decades. The availability of child care, increased educational opportunities

for women, the need for two incomes to maintain a household in many cases, and a

relaxing of societal pressures for women to stay in the home have all contributed to

this trend.

It is important to remember in making comparisons between this information and

information presented later in this chapter on unemployment rates, that this labor

force information describes persons living in the jurisdiction being analyzed. These

 individuals may actually be employed in another community. Information presented

 later in this chapter and obtained from the State of Michigan Labor Market Information

office is based on actual employment in a county or region, and the persons holding

those jobs may not live in the county where they are employed.

Tourism is an industry that is becoming less seasonal in nature in recent years.

Whereas tourism formerly occurred primarily in the summer months, skiing and

 snowmobiling now draw increasing numbers of winter visitors to the Upper

Peninsula. Fall color tours attract visitors during the fall, and in many areas

 gambling casinos have become a year-round attraction. Some areas also capitalize

 on local history to attract tourists. Crystal Falls contains several historic buildings,

including the county courthouse and city hall, and has a rich mining and lumbering

history. Three golf courses in the area, along with the Ski Brule ski resort near Iron River

 lure visitors from outside the local area as well.

Another change in the tourism industry has been the trend away from one long

 family vacation in favor of shorter mini-vacations, often extended weekends. Recent

 national events have also contributed to this trend, as some travelers are reluctant to

 fly and prefer to stay closer to home. Heritage-tourism and eco-tourism have increased

 in popularity. Heritage-tourism draws those interested in the historic and cultural

 offerings of a community or institution. In the local area, the Iron County Heritage

Trail has been designated by the Michigan Department of Transportation as a Heritage

Route. This route allows tourists to visit a variety of attractions highlighting the

history of the local area. Eco-tourism has gained popularity among those wanting to

experience nature through activities such as bird watching, hiking, and kayaking.

3.4 Employment by Industry Group

Employment information collected for the 2000 Census and categorized using the

Standard Industrial Classification (SIC) manual is presented in Table 3-3. The use of

 this system classifies establishments by the type of industrial activity in which they

are engaged. The census information used is based on the answers local residents

provided, and so may not correspond exactly with the SIC codes used in reporting

 information to the Michigan Employment Agency. Furthermore, the Census information

represents Crystal Falls residents only, who may work outside the City; the data in Table

 3-3 is not indicative of the types of jobs provided in the City.

At the time of the 1990 Census, the sector employing the largest proportion of local

 residents was the service sector, at 39.8 percent. By 2000, that sector employed nearly

 half of the local labor force. Retail trade, the second-largest sector in 1990 at 15.5 percent,

 had fallen to 11.3 percent in 2000. Manufacturing dropped from 13.8 percent in 1990 to

 7.0 percent in 2000, while construction employment among local residents grew from

8.8 percent to 9.2 percent to take over the third ranking in 2000. This growth of

construction employment may be countered by the current economic downturn. The

 percentage of construction employment is significantly higher than the statewide

 average, as is the percentage of people employed in agriculture, forestry, fisheries

 and mining. Local manufacturing employment was much lower than statewide levels

 in 1990, and decreased at a greater rate between 1990 and 2000.

A comparison of wages derived from manufacturing, wholesale and retail trade and

the service sector for all Upper Peninsula counties is presented in Table 3-4. It is

 noteworthy that the three south-central counties of Delta, Dickinson and Menominee

generated 61.5 percent of all the Upper Peninsula’s manufacturing wages in 1999. The

 percentage of wages derived from manufacturing in Iron County was higher than

many counties, but the actual manufacturing wages in 1990 were among the lowest in

the U.P. The percentage of wages derived from wholesale and retail trade, on the other

hand, was higher than any other U.P. county, while service-sector total wages were

 about average in proportion. What this example serves to illustrate is the desirability

of manufacturing jobs. While only accounting for 9.9 percent of Iron County’s

employment in 2000, manufacturing jobs generated 19.8 percent of the county’s

wages in 1999. Conversely, the service sector, with 45.2 percent of employment in

 2000, generated 28.4 percent of wages in 1999. While wages in the service sector

 have increased in recent years, and probably will continue to do so as the labor force

shrinks and demand for services such as health care increases, it is clear that these jobs

do not generate the income levels of manufacturing jobs. Manufacturing jobs, however,

 are more difficult to attract and retain, as companies downsize and move operations

out of the U.S. to take advantage of cost savings.

3.5 Employment by Place of Work

In 1990, according to the Census, about 84 percent of Crystal Falls’s working population

was employed in Iron County; in 2000 the proportion employed in the County remained

 nearly identical. The proportion of local residents who worked outside of Michigan

more than doubled, although the number remained small. While most of those who

worked outside of Michigan probably commute to Wisconsin, more detailed Census

information available at the County level shows Iron County residents working in

Colorado, Indiana, and the Chicago area. It is interesting to note that just over half of

he employed Crystal Falls residents worked in the City. 199 local residents found

 employment in Iron County, but outside of Crystal Falls. This information is

summarized in Table 3-5.

The workplace is changing as technology changes, with workers having more mobility

 than ever before as a result of technology. While many businesses will always

require employees in an office or retail location to serve customers, and industries

will require workers on site to manufacture goods, for example, more and more

employees can work from a satellite location or even from their home. Laptop and

ablet computers, cell phones, pagers, fax machines, and video conferencing are among

the technologies that make this flexibility possible. Individuals in such positions will

find that they can live where they choose, needing only Internet access, reliable

telephone service, and perhaps quick access to an airport if frequent travel is required.

 For rural areas such as Crystal Falls, these residents can contribute to the local economy,

 send children to local schools, etc., while working for an employer whose office may

be on the other side of the country. It also means that Crystal Falls must compete against

 other communities to attract such individuals to Crystal Falls rather than another

location.

Source: U.S. Bureau of the Census, 1990, STF 3A, P045, P048; 2000 DP-3, P045, P048.

3.6 Unemployment

County unemployment and labor force data are collected and analyzed by the Michigan

 Employment Security Agency, formerly known as the Michigan Employment Security

Commission (MESC). Actual unemployment information is reported by county, and

rounded to the nearest 25. Comparative data are presented in Table 3-6 and Figure 3-1.

Iron County has generally recorded higher unemployment rates than the rest of the

Upper Peninsula, which in turn are higher than statewide and national unemployment

 rates. However, in recent years the gap between the county unemployment rate and

averages in wider areas has decreased.

The size of the labor force and the proportion of unemployed persons are of course

related to economic conditions. While unemployment rates in recent years have been

 among the lowest ever, it appears unemployment is increasing. The labor force,

 meanwhile, has shrunk to its lowest level since 1991. A shrinking labor force can lower

unemployment rates by removing persons from the labor force, and can be an indication

 that residents have exhausted their unemployment benefits, have moved to other areas

to seek work, or have given up the job search.

An analysis of local income trends and sources of income is helpful in understanding

 the local economy. This information can give an idea how much disposable income is

available in the local population, the ability and willingness to pay for services, and

provides a point of comparison between the local area and statewide trends.

The U.S. Census gathers information on income on the so-called "long form," and

compiles that information in several different ways. Per capita income is calculated

 by dividing the total aggregate income for all persons in an area by the number of

 persons in that area. Family income is the total income for all members of a family

 household; family households exclude one-person households and households whose

members are not related through blood, marriage or adoption. Household income

 includes all types of households, both family and non-family.

Historical Census information present income information based on that year’s dollar

values. When comparing income across the decades, this can be somewhat misleading,

as the increases in income can seem fairly large. To adjust for this, the Census Bureau

 calculates an inflation factor which can be used to adjust for the effect of inflation over

the 10-year period between censuses. Adjusting incomes for inflation gives a more

accurate picture of whether or not buying power or disposable income actually

increased, and whether residents’ financial condition improved. For example, many

 communities in Michigan saw significant increases in income between the 1980 and

1990 census years. When inflation was taken into account, however, it could be seen

 that actual incomes dropped in many cases. This meant that in those areas, people

actually had less money to spend when the increased cost of goods and services was

 taken into account. Between 1990 and 2000, most areas saw actual increases in incomes

after inflation, reflecting the general economic prosperity of the late 1990s. Table 3-7

depicts the income trends for several local units in Iron County, along with statewide

averages.