Economic Impact of Healthcare

The Partnership for Michigan’s Health reports that healthcare directly employed nearly 602,000 Michigan residents in 2018, demonstrating that healthcare continues to be the largest private-sector employer in the state. The 2020 edition of The Economic Impact of Healthcare in Michigan shows that direct healthcare workers in Michigan earned $39.3 billion that year in wages, salaries and benefits. Hospitals alone employ more than 234,000 individuals in the state.

Direct healthcare employment helps create additional jobs that are indirectly related to or induced by healthcare. These healthcare-supported jobs are held by more than 552,000 people who earned about $27.6 billion in 2018 in wages, salaries and benefits. Together with their employers, the nearly 1.2 million workers in the healthcare sector contributed almost $18.6 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 2018 data, which is the most recent available.

The report’s dashboard provides statewide data and breaks it down by region and county. This interactive tool allows information to be viewed and printed for one county or region and for any chosen combination of counties or regions.

The data demonstrates that healthcare is Michigan’s largest creator of direct, private-sector jobs — jobs that continue to provide employment opportunities for residents statewide.