Healthcare Remains Michigan’s Largest Private-Sector Employer, Supporting More Than 1 Million Jobs as Demand for Healthcare Workers Persists
The Michigan Health & Hospital Association (MHA) today released its 2026 Economic Impact of Healthcare in Michigan report, highlighting healthcare’s role as one of Michigan’s leading economic drivers. In fiscal year 2024, healthcare generated $115 billion in economic value, supported more than one million jobs and contributed $25.1 billion annually in tax revenue.
The report underscores the critical role hospitals play in Michigan communities, not only as healthcare providers, but also as employers and taxpayers. Hospitals alone provide more than 222,000 direct jobs and $11.3 billion a year in tax revenue, represent 45% of healthcare’s direct tax revenue and remain the largest healthcare sector in the state.
“Hospitals are not only essential to the health of Michiganders, but they are also fundamental to the health of our state’s economy,” said MHA CEO Brian Peters. “These findings demonstrate the tremendous value hospitals bring to communities across the state through the care they provide, the jobs they create and the economic activity they generate. To sustain those contributions, we must continue supporting hospitals and investing in the workforce that makes care possible.”
Healthcare leads other major Michigan industries in direct wages and salaries, generating $51.4 billion annually compared to $28.1 billion for education and $19.4 billion for automotive manufacturing.
The MHA also released results from its annual Michigan hospital workforce survey, which found demand for healthcare professionals remains high. Michigan hospitals hired approximately 58,000 workers in 2025 and employ roughly 222,000 full- and part-time workers statewide, including nearly 67,000 registered nurses (RNs).
Michigan hospitals continue to outperform national nurse retention rates, with a turnover rate 4.6 percentage points lower than the national average of 17.6%.
Despite strong recruitment and retention rates, workforce shortage challenges remain. The survey identified approximately 23,000 open positions in hospitals statewide, with RNs remaining the largest vacancy with approximately 4,700 openings. The survey includes responses from more than 95% of all Michigan acute-care inpatient hospitals.
To complement the hiring efforts of individual hospitals, the MHA continues to operate the statewide MI Hospital Careers public awareness campaign. Originally launched in 2023, it targets Michigan students and professionals considering a career change to express the value of healthcare careers.
The 21st edition of The Economic Impact of Healthcare in Michigan was compiled using IMPLAN® cloud software to quantify healthcare’s significant economic impact in the state. The data represents direct, indirect[1] and induced[2] 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).
Phone: (517) 703-8601
Fax: (517) 703-0628
