Michigan's "rust bowl" days are over. Although the work force is still too dependent on auto manufacturing, the economy is diversifying into trade, distribution, and financial and business services. The new jobs created are mostly in small businesses with fewer than 50 employees. The state's population is very stable with few migrations either in or out; however, the percentages of children in poverty and of kids being raised by single parents are increasing. A Baby Boomlet has not occurred in Michigan as it has in other parts of the country, so the state's youth population will not increase in the next decade. While the state's high school graduation rate is low, the rate of college attendance for those students who do graduate is high. Black suburbanization in Detroit has proceeded very slowly; during the 1982 recession, the city became more than 60 percent black due--in large part--to the "landlocked" status of urban blacks. Because Michigan continued to fund higher education even in difficult economic times, the system "weathered" the recession comparatively well. (12 references) (KM)