The city of Detroit called the motor city, has had a long history of being the car manufacturing center of America. In recent years many auto manufacturers and suppliers have closed down several plants. The ripple effect of plant closures have caused many problems in this once prosperous city. However, recent reports have shown that Detroit is slowly making its way back to life. Here are some of the factors having a positive impact in Detroit.
- Decline in Unemployment Rate
The local CBS station in Detroit issued a report in February 2011 where it states that unemployment rate in February went down from the previous month. The unemployment rate for Detroit in February was 9 percent. The average unemployment rate for the U.S. in February dropped to 8.9 percent. Detroit’s unemployment rate is very close to the national average which shows that the city may be heading for brighter days.
- More Contract Job Opportunities
Auto manufacturers are turning to contract workers for more flexibility and lower pay rates. Manufacturers like Chrysler have increased its U.S. contract labor force by approximately 150 percent in 2010. Many of these contract workers are hired through staffing agencies. As a result, local staffing firms are seeing an increase in profits, which contributes to the economic growth of Detroit.
- Revitalization of Mortgage Lenders
A non-profit organization called Southwest Housing Solutions has taken on the huge task of getting people interested in buying and refinancing homes in Detroit. With grant funding from government and private institutions, Southwest plans to use its own money to assist potential buyers.
The city of Detroit may be down but it’s not out. There is still hope for the economic recovery of Detroit.