Every GM job in Michigan creates more than 3 others, study finds

Kalea Hall
The Detroit News

Detroit — Every direct job at General Motors Co. in Michigan spins off another 3.3 jobs in the state, a new study commissioned by the automaker found.

GM in 2019 directly employed more than 46,800 in the state and those jobs supported another 153,600 other jobs here, according to the study released Monday by the Center for Automotive Research. The automaker's Michigan employment generated $14.5 billion in worker earnings and $4 billion in personal income tax and other payroll taxes, the Ann Arbor-based nonprofit CAR estimated.

Nearly 47,000 workers were employed by GM in Michigan last year. Those jobs supported another 153,600 other jobs here, according to a study by the Center for Automotive Research that was commissioned by the automaker.

"Automotive is one of the most impactful segments in the economy," said Kristin Dziczek, CAR’s vice president of research and lead author of the report. "The communities that have GM jobs have a stake in holding on to them because they are so impactful."

GM operates 15 plants in Michigan, the most of any state. And the company's economic influence on the state is by far the largest. No. 2 is Indiana, where GM operates four manufacturing facilities and directly employs more than 6,800 hourly and salaried worker; those positions support another 38,000 jobs in Indiana, according to CAR.

The study shows that GM is a significant contributor to the economies of nine states where it manufactures vehicles, parts and components. CAR estimates that a direct GM job supports 7.1 other jobs in the U.S. economy. GM's total employment contribution from its 83,860 jobs is 681,000 jobs, including those who directly work for the automaker.

The automaker's direct employment in the U.S. generated an additional 207,420 jobs at companies that supply GM and 291,280 additional jobs in the U.S. economy that are supported when employees of GM and its suppliers spend their earnings.

GM’s direct U.S. employment generates $51.6 billion in private earnings and $13.7 billion in taxes. CAR estimates direct earnings from GM manufacturing creates more than $7.2 billion  in personal income taxes and $6.5 billion in other payroll taxes, and that GM supported $37.9 billion in private disposable personal income last year in the U.S.

GM is the second-largest U.S. vehicle producer in 2019, behind Ford Motor Co. GM produced 1.7 million vehicles here in the U.S.; Ford produced 2.2 million.