A recent study conducted by the Center for Automotive Research found that every General Motors job in Michigan supports three more in the Mitten State.
According to the study, GM directly employed 46,800 people in Michigan in 2019 and those jobs helped support another 153,600 in the state. The study also indicates GM paid out a total of $14.5 billion in worker earnings last year, helping to generate $4 billion in personal income tax and other payroll taxes.
Kristin Dziczek, the vice president of the Ann Arbor, Michigan-based Center for Automotive Research and the main author of the report, said the automotive industry is “one of the most impactful segments in the economy currently,” both within Michigan and nationwide.
“The communities that have GM jobs have a stake in holding on to them because they are so impactful,” she told The Detroit News.
GM’s contributions to the U.S. economy outside of Michigan are also significant. The study found that direct GM employment helped generate or support an additional 207,420 jobs at automotive suppliers last year, while a further 291,280 jobs are supported by GM and supplier employees spending their earnings (ie. at nearby stores, restaurants, etc.).
GM paid out $51.6 billion in private earnings nationwide last year, as well, creating $13.7 billion in taxes, and drove $37.9 billion in private disposable personal income.
Michigan is still the state where GM has the biggest impact, though. The automaker operates a whopping 15 plants in Michigan, including the sprawling Flint Assembly complex, where it employs roughly 2,000 assembly line workers. It has its second-biggest footprint in Indiana, where it operates just four plants and employs 6,800 workers in total.
GM’s total employment contribution across the entire U.S., according to the study, is 681,000 jobs. That figure includes the 83,860 employees who work directly for the automaker.
“CAR’s estimates demonstrate that General Motors—the largest automaker by U.S. market share and second-largest automaker by U.S. light vehicle production volume—is a significant contributor to the U.S. economy and the economies of the nine states in which GM has manufacturing facilities,” the study concludes.
You can read the entire study, entitled ‘Contribution of General Motors to the Economies of Nine States and the United States in 2019’, at this link.
Source: The Detroit News