Our Talented Workforce

With experience, education, and diversity, the greater Ann Arbor region is home to a strong and growing workforce. Communities in the greater Ann Arbor region may have been built around farming and manufacturing, but they have expanded and adapted to include technology and mobility.

76,052
Advanced Manufacturing Professionals
Source: U.S. Census Bureau
300
R&D Companies
Source: Michigan Economic Development Corporation
21,990
of Technology Professionals
Source: U.S. Bureau of Labor and Statistics
#1
America’s Highest Concentration of Engineers
Source: Michigan Economic Development Corporation

Population

The greater Ann Arbor region is a thriving and growing place in Michigan, the comeback state. Our population has increased 6% within the last five years, and many people are moving to the region, both in state, from the Unites States, and from around the globe.

5,144 people have migrated to region in last 5 years

With the population growth in the greater Ann Arbor region, it is an exciting time to join the community and help determine the emerging new shape it forms in the future.

  • Greater Ann Arbor region population: 995,626
  • Greater Ann Arbor region Labor Force: 482,651
  • Median household income of $40,353
  • Low unemployment rate of 4.5%, as compared to the State of Michigan rate of 5.9%
  • Over 19,000 business establishments in the region, representing a wide range of industries.
  • Mobile workforce with anywhere from 38 to 73% of a county’s workers traveling outside of their county for work.
Source: U.S. Census Bureau, Population Division

Business and Employee Friendly Taxes and Policies

If you have any questions about these Michigan taxes and policies, please contact the Greater Ann Arbor Region. We’re here to assist you.

Workers’ Compensation Insurance

Michigan’s workers’ compensation insurance is in an “open competition” system. Rates are set by the market, so businesses can take their pick from among more than 200 workman’s comp insurance carriers.

Right-to-Work

This new law went into effect in March of 2013. While not prohibiting unions, it makes it illegal to require that an employee pay dues or service fees to a union as a condition of obtaining or continuing employment.

Unemployment Insurance

Michigan businesses pay unemployment insurance on the first $9,000 of wages paid to each worker in a calendar year, and the percentage required varies based on a business’ experience rating. New employers pay a rate of 2.7 percent, while more established business can pay as low as .06 percent.

Taxes

Michigan has eliminated personal property taxes, which helps manufacturing businesses when they have to make capital investments in machinery. Michigan also does not allow local sales taxes.

6% Corporate Tax

Michigan levies a Single Business Tax (SBT), which is a modified value-added tax (VAT). The rate is 6.00%, and there is an additional modified gross receipts tax at a rate of 0.8%. For 2015, The Tax Foundation ranked Michigan’s corporate tax as 10th best in the nation.

4.25% Income Tax Rate

Michigan’s personal income tax rate is one of the lowest in the nation – a flat 4.25% tax rate that is scheduled to decline in the next few years.

6% Sales Tax

The state sales tax is 6% on sales of tangible goods. No local sales taxes are allowed.

0% Inventory Tax

Michigan has no inventory tax.

Good Jobs Bill

In 2017, Governor Rick Snyder signed the “Good Jobs” bill into law. It provides incentives for large businesses to locate and hire in Michigan. Businesses that meet certain requirements can keep a portion of the income tax generated by their new employees. Good Jobs Bill requirements:

  • The company must create at least 250 jobs that pay 125 percent or more of the region’s average annual wage or at least 500 jobs that pay the region’s average annual wage or more.
  • Certain industries, such as retail and jobs at sports stadiums, are exempt.
  • These companies are expected to maintain their investments and will be subject to audits.

This bill, among others that have come before it, make Michigan a business-friendly place to build a business and find a qualified workforce.

Learn more about the Good Jobs Bill 

Need Help?

Want to learn more about our talented workforce, employment costs, or taxes? We can connect you with the right information and professionals to help you move to or expand in the greater Ann Arbor region.