Diversity, education fuel evolution of Grand Rapids’ workforce

A new report from The Right Place, West Michigan’s economic development agency, highlights the shifting face of Grand Rapids' talent landscape, showcasing a region rebounding from the pandemic with increasing strength in diversity and educational attainment. 

The 18-page 2024 Talent Report is the first time West Michigan’s economic development agency has reported on this talent component. The data paints a snapshot of the area’s workforce and reveals a community on the edge of transformative change.

One big shift is that professionals are flocking to Grand Rapids, drawn not just by job opportunities but by prospects for long-term growth. According to the report, the number of residents aged 25 to 34 holding a bachelor’s degree is more than double the national average. This surge in educational attainment signals a talent pool increasingly ready to fuel innovation in the region.

Diversity has also taken a front seat in the area’s evolving demographics, says TaRita Johnson, The Right Place’s senior vice president of talent and diversity, who oversaw the project.

In the past 20 years, the population has become more diverse, and continues to trend upward. Projections suggest that by 2050, diverse populations could make up more than one-third of Greater Grand Rapids, marking a pivotal shift toward a more inclusive community and workforce.

While job postings remain at high levels post-pandemic, net job growth has slowed. Many employers are shifting their strategies to focus on retaining and training current employees, with an emphasis on preparing their teams for a future driven by AI and technological advancement.

Rapid Growth caught up with Johnson to talk about how this report can provide a blueprint for the future growth as employers look to nurture and retain this evolving workforce.

Courtesy The Right PlaceRapid Growth caught up with TaRita Johnson to talk about how this report can provide a blueprint for the future growth as employers look to nurture and retain this evolving workforce.

Rapid Growth: How does this year’s report compare to previous years in terms of talent trends, particularly in education levels, population diversity, and technology demand in West Michigan? 

TaRita Johnson: This is the first time we've added a talent report to our publication schedule, but we have been following trends.

Over the past decade, we've seen an increase in the greater Grand Rapids population with bachelor-level degrees or higher. The concentration of bachelor's degree holders as a portion of the population grew by 5% from 2014 to 2024 (about 45,000 people), and the concentration of graduate and doctoral degree holders rose by 3% as a portion of the population.

Greater Grand Rapids is also becoming more diverse. Twenty years ago, 17% of the area’s population was diverse. Today, diverse communities account for 23.4% of the population. By 2050, we anticipate that number will reach 35%.

Regarding technology, companies are increasingly looking for technical skills in their employees. Across industries, the number of job postings mentioning AI has exponentially increased, up 338% since 2022. At the same time, many companies are willing to train new hires on technical skills. They seek a foundation of soft skills – curiosity, communication and professionalism – to build from. 

RG: What factors are driving the recent increase in adults pursuing and obtaining bachelor’s degrees, and what economic or industry impacts does The Right Place anticipate from this shift?

TJ: We don't have a clear picture of whether the increase in the concentration of bachelor and advanced degree holders is a result of more students pursuing college degrees or if it is influenced by the number of college degree holders moving to Greater Grand Rapids. We have a growing number of tech firms here that need highly qualified talent. Our solid manufacturing base also hires a large proportion of engineering talent and others with advanced degrees. 

Courtesy The Right PlaceA new report from The Right Place, West Michigan’s economic development agency.

There is an indication that traditional college enrollment is declining in some cases. Meanwhile, the region boasts a powerful presence of community colleges and trade schools that offer students ways to advance their careers if they are not interested in the college track. Skilled trades continue to be an essential part of our regional economy. 

RG: In what ways is West Michigan’s growing diversity influencing the region’s workforce dynamics, and which sectors are seeing the most significant changes in demand for diverse talent?

TJ: We do not have data that gives us insight into which sectors are seeing the most diverse talent increase. However, we do know that achieving inclusive excellence is an ongoing and essential part of any workforce strategy. More diversity means employers will need to ensure their workplaces welcome people from different backgrounds and experiences than they may have used to in the past.
 
RG: How is West Michigan addressing the rising need for AI and technology talent, and what specific programs or partnerships are in place to support growth in these fields?

TJ: The Right Place recently launched an AI in Manufacturing Roadmap designed in partnership with our regional manufacturers to help small- to mid-size manufacturers adopt AI in their organizations. Meanwhile, our Technology Council continues to engage with tech companies across the region to advance our collective experience and deployment of AI technology. 

RG: Looking ahead, what are the key actionable insights or recommendations from the report that aim to strengthen West Michigan’s talent landscape over the next five years?

TJ: Talent attraction is an important and visible pain point for many companies, but talent retention will become increasingly essential. Greater Grand Rapids' population is growing, but demographics are changing. Birth rates are down, the population is gradually aging, and diversity is rising. Hiring departments must consider these factors when drafting their workforce development plans. 

Companies should also pay attention to technological developments and grasp how that technology may impact their business and workforce. Continual workforce training, a commitment to upskilling, and teaching the skills that help workers adapt and thrive in a changing environment will be essential for continued growth.