The Economic Impact of Health Care in Michigan

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TheEconomic Impactof Health Care inMichigan
Fourth Edition June 2008 www.EconomicImpact.org
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2008 Economic Impact Report

• This 2008 study demonstrates that
• Michigans health care sector is the largest
  single employer in the state.
• Michigans health care sector will continue to
  generate significant new job opportunities in the
  future.

www.EconomicImpact.org
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2008 Economic Impact Report

• This study presents statewide, county and
  regional
• economic impact data showing
• The total number of direct, indirect and induced
  health care jobs in Michigan.
• The wages, salaries and benefits paid to health
  care workers in direct, indirect or induced
  health care jobs.
• The taxes paid by health care workers and their
  employers.
• Information on how to academically pursue a
  health care career in Michigan.

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Executive Summary Key Findings

• About 10 of every 100 Michigan jobs are directly
  in health care.
• Nearly 15 of every 100 Michigan jobs are
  indirectly related to or induced by health care.
• Direct, indirect and induced health care jobs
  total nearly 794,200 in Michigan.
• Wages, salaries and benefits for direct, indirect
  and induced health care jobs total nearly 36.7
  billion in Michigan.

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Largest Single Employer
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Michigans Direct Health Care Jobs

• Total direct health care employment exceeds
  Michigans agricultural, educational and
  automotive manufacturing sectors nearly 515,700
  jobs strong.
• Michigans direct health care workers earn about
  26.3 billion a year in wages, salaries and
  benefits.

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Michigans Indirect Induced Health Care Jobs

• Nearly 278,500 Michigan citizens work in jobs
  that are indirectly related to health care or
  induced by the health care sector.
• Michigans indirect and induced health care
  workers earn about 10.3 billion a year in wages,
  salaries and benefits.

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Types of Health Care Jobs
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Health Care Employment by Region
Once income has flowed out of a region, it cannot
generate any additional multiplier effects in the
original region. Adding the numbers in the table
above will result in different statewide totals
due to the change in boundaries used in the
economic model.
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Michigan Top 10 Counties with the Most Direct
Health Care Jobs
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Taxes Paid by Michigan Health Care Workers
Employers

• Michigan health care employers and the residents
  who hold direct, indirect and induced health care
  jobs pay nearly 12 billion annually in taxes.
• State and federal taxes paid include Social
  Security, income, motor vehicle, sales, real
  property, personal property, corporate and more.
• Health care workers and their employers pay more
  than 10 million in taxes in 60 counties and more
  than 100 million in taxes in 17 counties.

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Taxes from Michigan Health Care Jobs Top 10
Michigan Counties
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2008 Economic Impact Report

• Key Messages

• Health Care is Michigans largest employer,
  providing wages, salaries and benefits through
  thousands of good-paying jobs.
• Health care provides billions of dollars annually
  in tax revenue and economic stimulus.
• Health care jobs stabilize local economies.
• The state will need to fill tens of thousands of
  health care jobs in the next five years.

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For More Information . . .
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2008 Economic Impact Report Data

• IMPLAN data is an assessment modeling system to
  estimate the impacts of economic activities and
  changes in states, counties and local
  communities.
• The data used are compiled from many sources, but
  mostly from the federal government, such as the
• ? U.S. Bureau of Economic Analysis
• ? U.S. Bureau of Labor
• ? U.S. Census Bureau