See where Michigan is giving corporate subsidies for expansions, new jobs
- Michigan spent $335 million in 2023 on subsidies to 83 companies that promised to create 11,408 jobs
- That’s an average of $29,000 per job
- Lawmakers are debating whether Michigan is getting a good return on its investment
Michigan committed $335 million from the state’s main economic development subsidy programs to help 83 companies create 11,408 jobs in 2023.
That’s an investment of $29,000 per job.
The median pay of those jobs: $50,689, about $24 per hour. Half of the promised jobs will pay less than that, according to Bridge's analysis of subsidies by the Michigan Economic Development Corporation (MEDC.)
The analysis follows increased attention from legislators and others on Michigan’s prosperity. The state now ranks 39th in the nation for income per capita, and it’s poised to fall further.
Use this map to learn details about the subsidies.
Bridge’s analysis found average pay information for 76 of the 83 companies receiving subsidies by reviewing publicly available MEDC documents on each deal. No pay detail was included for seven of the deals.
The analysis also showed:
- Nearly 88% of last year’s business subsidy dollars went to manufacturers Among them, 21 expected to pay less than $22 per hour. Four others didn’t disclose pay, while 30 companies paid more. Five companies told the state the average pay for their new jobs would be less than $20 per hour (under $40,000 per year).
- The lowest average subsidized pay was $16.60 per hour, or $34,528 per year, to auto supplier Shyft Group of Charlotte. The state contributed $800,000 for a planned $16 million expansion to build electric fleet vehicles. The project is expected to create 680 jobs.
- Ten companies, mostly tech-based, pledged average annual wages of more than $100,000. But tech jobs accounted for just 9% of the dollar value of 2023’s incentives. The highest average pay was promised by electric truckmaker Scout Motors of Novi at $193,128.
- Seven of the state documents released to Bridge did not include pay details. Among them was Frankenmuth’s Bavarian Inn, which Whitmer said would bring “good paying jobs” when she announced a $750,000 grant for the hotel to build a new water park.
Read more of Bridge’s analysis of Michigan’s incentives:
Corporate subsidies cost Michigan $335M; 40% of deals create low-paying jobs
Michigan lawmakers eye retooling corporate subsidies to target high-wage jobs
In Michigan, 60% of jobs don’t pay middle-class wages. Can state stop slide?
What is a ‘good-paying’ job in Michigan? Tell us what you think
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