Healthcare Remains the Largest Private-Sector Employer in Michigan & Demand for Healthcare Jobs Remains High
LANSING, Mich. — The Michigan Health & Hospital Association published results from the 2025 Economic Impact of Healthcare in Michigan report as part of National Hospital Week (May 11-17), demonstrating a $106 billion total economic impact healthcare had in fiscal year 2023, the most recent data available.
More than one million jobs are either directly, indirectly or induced by healthcare in the state, contributing $79 billion a year in wages, salaries and benefits and an additional $23.6 billion a year in tax revenue. Hospitals alone provide more than 222,000 direct jobs and $10.7 billion a year in tax revenue, representing 44% of healthcare’s direct tax revenue and remaining the largest healthcare sector in the state. Overall, healthcare remains the state’s largest employer of direct, private-sector jobs.
Also released are the results from the MHA’s third annual Michigan hospital workforce survey, which shows the demand for hospital workers remains high, with hospitals hiring 58,000 employees in calendar year in 2024 and having 23,000 open positions statewide. The survey includes responses from more than 95% of all Michigan acute-care inpatient hospitals.
The results also show Michigan hospitals continue to outperform national nurse retention rates. The registered nurse (RN) turnover rate for Michigan hospitals is 2.3 percentage points lower than the national average of 16.4%. Collectively, Michigan hospitals now employ roughly 64,500 RNs.
“The success of Michigan’s economy is closely connected with the strength of our healthcare system,” said Michigan Health & Hospital Association CEO Brian Peters (left). “Healthcare is the foundation for many local communities. As Michigan ages and more individuals need complex care, the demand for healthcare services and workers continues to grow – and hospitals must meet that demand. As we celebrate National Hospital Week, we commend the hospital workers who show up to work every day to care for us and make Michigan healthy.”
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 20th 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).
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About the MHA
Based in Greater Lansing, the MHA is the statewide leader representing all community hospitals in Michigan. Established in 1919, the MHA represents the interests of its member hospitals and health systems in both the legislative and regulatory arenas on key issues and supports their efforts to provide quality, cost-effective and accessible care. The MHA’s mission is to advance the health of individuals and communities.
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