Report Shows Healthcare is Michigan’s Largest Private-sector Employer
Posted on February 28, 2019
Provides 602,000 Direct Jobs, More Than 230,000 in Hospitals Alone
The latest report from the Partnership for Michigan’s Health shows that healthcare directly employed more than 602,000 Michigan residents in 2017, demonstrating that healthcare continues to be the largest private-sector employer in the state. The 2019 edition of The Economic Impact of Healthcare in Michigan indicates direct healthcare workers in Michigan earned more than $38 billion that year in wages, salaries and benefits. Hospitals alone employ more than 230,000 individuals in the state.
Direct healthcare employment helps create additional jobs that are indirectly related to or induced by healthcare. Michigan’s healthcare sector supports about 489,000 additional people who earned nearly $24 billion in 2017 in wages, salaries and benefits. Together with their employers, the nearly 1.1 million workers in the healthcare sector contributed almost $18 billion that year in local, state and federal taxes. These taxes include Social Security, income, motor vehicle, sales, property, corporate and more.
The report was compiled by the Partnership for Michigan’s Health, which consists of the Michigan Health & Hospital Association, the Michigan State Medical Society and the Michigan Osteopathic Association, all based in the greater Lansing area. It uses 2017 data, which is the most recent available.
“Michigan’s hospitals and health systems work daily to protect residents’ health and wellbeing and, in the process, provide nearly 40 percent of healthcare’s economic activity in Michigan. Hospitals and health systems support both physical, mental and financial wellness,” said Michigan Health & Hospital Association CEO Brian Peters.
"The economic impact studies confirm that physicians are job creators in every setting: hospital or office, city or state,” said Julie L. Novak, CEO of the Michigan State Medical Society. “Michigan physicians pride themselves on providing outstanding quality care to their patients and, clearly, that aim provides stability and an opportunity for growth.”
“The Economic Impact Report illustrates how healthcare providers are a major factor in Michigan's economy. This is a great transparency tool that shows how much healthcare employers contribute in wages and tax revenue benefits in our communities.” said Kris Nicholoff, executive director of the Michigan Osteopathic Association.
The 14th edition of The Economic Impact of Healthcare in Michigan was compiled using IMPLAN® V.3.1 software to quantify healthcare’s significant economic impact in the state. The data represents direct, indirect1 and induced2 healthcare jobs; taxes paid by those workers and their employers; and salaries, wages and benefits earned. The report is an online, interactive tool that allows users to examine these economic impacts from a statewide perspective and by region, county or congressional district. It is available at www.economicimpact.org.
1. Indirect jobs are those created to support a larger employer or industry (for example, a laundry that cleans linens for a hospital).
2. Induced jobs are those created by the spending of people who work in the indirect jobs (for example, a restaurant waiter who serves the laundry workers).
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