The brain drain problem is very real. I graduated the University of Michigan in 2008 and the majority of my colleagues moved out of state. I can’t say I blame them. A good number have been successful at FAANG type companies or startups and seem relatively better than us who stayed in the state. The firms in Michigan just can’t compete with the total compensation you can get elsewhere. Most of the positions here are auto related still. The auto industry is cyclical and booms and busts.
Both Ann Arbor and Detroit have special events trying to lure back expatriates. Wish East Lansing did something similar but afraid we lack the startup jobs to make it worthwhile.
What Lansing does do is have social events trying to convince junior and seniors at MSU to stay locally and they've had some success with it.
I've personally tried to get several MSU alums Valley startups to outsource customer service jobs to East Lansing. The salaries they pay for those positions make it a struggle to live in SF but would be a fair wage in Michigan. I haven't had any success yet but I won't stop trying ;<).
I worked at two FAANGs then moved to Michigan about two years ago, just outside of Ann Arbor. I get contacted by a decent number of recruiters but I'd estimate only about 5-10% of them represent companies with a Michigan presence.