November 08, 2024
Michigan is home to a substantial number of veterans. According to data from the 2023 American Community Survey one-year estimates from the U.S. Census Bureau, veterans represent 5.6 percent of Michigan’s overall population, totaling over 441,000 individuals. This is slightly below the nation’s share of veterans (6.1 percent).
Michigan veterans tend to be older than the general population. Most veterans are over 65, with nearly one-third exceeding 75. In contrast, fewer than 25 percent of nonveterans fall into the 65-and-over category. Nationally, 49.0 percent of veterans are over 65, compared to just 21.0 percent of nonveterans.
Number of Veterans by Age Group
Source: 2023 American Community Survey One-Year Estimates, U.S. Census Bureau
This age difference is partly due when veterans served. Over one-third of Michigan veterans served during the Vietnam War, which accounts for twice the number from any other era. Vietnam veterans also represent about one-third of all veterans nationally. Notably, Michigan has a smaller share of veterans from the Gulf War periods (Pre and Post September 2001) compared to the national average.
In terms of racial demographics, 82.8 percent of Michigan veterans identify as white compared to 75.4 percent of nonveterans. This trend is consistent nationally, where 74.1 percent of veterans are white, while 62.2 percent of nonveterans identify as such. Black or African American individuals account for 10.3 percent of Michigan veterans, slightly below the 12.8 percent of nonveterans.
Disability rates are notably higher among veterans, accounting for 32.8 percent of veterans in Michigan, which is nearly twice that of nonveterans (16.4 percent). This is similar to the national average, with 30.9 percent of veterans having a disability, compared to 15.1 percent of nonveterans. The disparity between the two groups may be attributed to factors related to military service, age, or a combination of these elements.
Just over 8 percent (36,000) of the state's veteran population were female, while the remaining 92 percent (405,400) were male. This was like to the national trend where female veterans made up 10.9 percent of the national veteran population. This is starkly different from the nonveteran population where women made up 53.5 percent of the population in Michigan, and 53.8 percent nationally.
Education levels of veterans are similar to the overall population. Just over 40 percent of veterans hold some college education or an associate degree (31.1 percent for nonveterans) and nearly 25 percent have a bachelors degree or higher (33.3 percent for nonveterans). Interestingly, only 4.3 percent of Michigan veterans lack a high school diploma, which is near half the rate of nonveterans (8.2 percent). This may be due to military enlistment requirements that generally mandate a diploma or equivalent, although exceptions have been granted.
Reviewing labor market trends among different demographic populations can highlight disparities among these groups. Demographic data for all states are published as an annual average by the U.S. Bureau of Labor Statistics once a year. This data comes from the Current Population Survey, which is a different source than the standard monthly labor market information containing Michigan’s official unemployment rate and labor force. Comparisons should not be made with monthly data, as the demographic information presented in the following section is a 12-month average for Michigan.
Michigan Veteran and Nonveteran Unemployment Rate (2014-2023)
Source: Current Population Survey, U.S. Bureau of Labor Statistics
Veterans in Michigan generally face lower unemployment rates than their nonveteran counterparts. In 2023, the veteran unemployment rate was 2.7 percent, 1.1 percentage points lower than nonveterans at 3.8 percent.
In 2023, there were 254,000 veterans participating in Michigan’s labor force (working or actively seeking work) representing 49.3 percent of veterans. This labor force participation rate was lower than the nonveteran participation rate of 64.1 percent. This could be due to disability, age, other unique characteristics of this group.
Over the past 10 years, the total number of Michigan veterans and number of veterans in the labor force has fallen. The nonveteran population and labor force levels have increased over that time. Labor force participation rates have ticked up for both groups in recent years, with each recovering from the lows seen in 2021. An increase in participation rates among nonveterans can largely be attributed to gains in the total labor force (+7.1 percent) rather than population growth (+6.2 percent), but the same cannot be said for veterans. Since 2014, the state’s veteran population has declined by 173,000 or 25.1 percent, while the veteran labor force dropped by 35,000 or 12.1 percent. A greater decline in population compared to the decline in labor force for veterans is a major factor behind the higher participation rates for this group in recent years.
According to the American Community Survey 2023 one-year estimates, the median income for veterans in Michigan was $45,238, which was 20.9 percent greater than that of nonveterans ($37,420). A similar gap is seen nationally, where veterans earned a median wage of $52,122, which was 29.1 percent more than nonveterans ($40,368).
In the past year, only 8.8 percent of veterans in Michigan reported incomes below the poverty level, compared to 12.6 percent among nonveterans. These figures are similar to national averages, with veterans at 7.6 percent and nonveterans at 11.8 percent.
Several factors contribute to higher earnings and lower poverty rates among veterans. Their greater age often translates to more experience, and higher education levels are associated with increased earnings. Furthermore, veterans with disabilities may receive compensation through the U.S. Department of Veterans Affairs, which can help reduce poverty levels and is counted as income in the American Community Survey.
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