The Economic Case for Foreign-Born Workers in Michigan

(MICHIGAN) Michigan’s economy is leaning more than ever on foreign-born workers to steady the labor force, power population growth, and keep key industries running as 2025 unfolds. The most immediate development is a spike in concern among employers and local leaders that new 2025 policy changes—framed as the “One Big Beautiful Bill Act”—could slow work authorization, raise costs through new fines and fees, and restrict some public benefits. Business groups say these changes, combined with a wave of retirements and low birth rates, may reduce the state’s capacity to fill jobs in healthcare, advanced manufacturing, agriculture, and technology—sectors that already depend on immigrant talent.

Key economic signals and why they matter now

Michigan’s workforce story starts with demographics. Over the last decade, immigrants drove 57.7% of Michigan’s population growth, pushing against an aging trend that has weighed on the labor market for years.

As of 2022, the state had more than 687,000 foreign-born residents (about 6.9% of Michigan’s population). Foreign-born residents are also 24.1% more likely to be of working age than U.S.-born Michiganders. That difference is not abstract—it helps keep hospitals staffed, automakers on schedule, and farms harvesting on time.

• Foreign-born workers held 8.4% of Michigan’s jobs in 2022, slightly above their share of the working-age population.
• In STEM roles, they make up 18.6% of the workforce (including 28.2% of software developers and 24.3% of mechanical engineers).
• In healthcare, they account for 28% of physicians, 15.3% of dentists, and sizable shares of nurses, therapists, and allied health staff.
• Michigan ranks sixth nationally for H-2A seasonal program activity, with about 19,000 migrant and seasonal farmworkers supporting fruit and vegetable harvests.

These numbers point to an urgent policy reality. Many employers say they cannot replace retiring U.S.-born staff fast enough. Without people ready to work, companies delay expansions, reduce operating hours, or look to other states.

Immigrants also fuel entrepreneurship. In 2022, 46,200 immigrant entrepreneurs generated $1.4 billion in business income, making up 11% of all entrepreneurs in the state and owning about 20% of Michigan’s Main Street businesses. These firms create local jobs, lease storefronts, and draw foot traffic that benefits neighboring shops.

Tax base, public services, and the budget picture

Immigrants help fund schools, roads, local safety, and public health. In 2022, foreign-born residents paid $5.5 billion in federal taxes and $2.6 billion in state and local taxes, while holding $23.1 billion in spending power. Those dollars cycle through grocery stores, rent, car payments, and doctor visits.

Local examples reinforce the statewide pattern:

• Kent County (2019): immigrants paid over $408 million in taxes and held $1.3 billion in spending power.
  That buying power helps keep small businesses open and preserves jobs across retail, logistics, and service sectors.

Several regional economic groups note that immigrants have driven all of Michigan’s net population growth since 2010. Without that boost, some communities would have fewer families, fewer workers, and a weaker base to support schools and housing markets.

Pressure points in 2025: new fines, fees, and restrictions

Employers and immigrant families report that 2025 brought an added layer of uncertainty. The “One Big Beautiful Bill Act” has introduced new fines and fees and tighter benefit rules. While details are still rolling out, the immediate concerns are:

• Higher costs and tighter rules that can delay hiring and reduce the ability of foreign-born workers to accept offers.
• A potential chill on entrepreneurship as founders face more expense and regulatory uncertainty.

Health systems warn of longer wait times in clinics already stretched thin. Manufacturers say even small slowdowns in hiring line technicians or engineers can disrupt production goals.

A second pressure point is barriers to work authorization and professional licensing. Skilled immigrants often arrive with years of education and experience but struggle to update licenses or get timely work permits. When that happens, they work below their skill level or leave for other states.

State advisors argue that removing these barriers would pay off quickly by filling jobs in understaffed hospitals, rural clinics, research labs, and by keeping production onshore.

Workforce details across sectors

• Healthcare
  Michigan’s medical system leans on foreign-trained and U.S.-trained immigrant physicians to cover specialties and hard-to-fill shifts. 28% of physicians in the state are immigrants. Faster licensing recognition and targeted recruitment in underserved areas could shorten appointment wait times and reduce burnout.

• STEM and advanced manufacturing
  With 18.6% of STEM roles filled by foreign-born workers, firms depend on them for software, mechanical design, robotics, and quality control. The auto sector’s concentration in Michigan means any talent gap ripples through supply chains.

• Agriculture
  Seasonal labor drives fruit and vegetable harvests. Michigan’s rank as the sixth largest recipient of H-2A activity reflects intense, time-bound needs. If hiring stalls, farmers can lose harvest windows and processing plants receive fewer inputs.

• Main Street businesses
  Immigrants run about 20% of Michigan’s local storefronts (groceries, restaurants, repair shops, childcare centers). These businesses employ residents, stabilize commercial corridors, and provide neighborhood services.

Education, innovation, and the patent pipeline

Michigan’s universities attract international students in engineering, computer science, and health programs. Foreign-born students earn a large share of advanced STEM degrees—about 33% of master’s and 39% of PhDs.

• These students often participate in research labs that feed the regional innovation ecosystem.
• Immigrants account for a majority of patents at top research universities in the state.
• Retaining just half of Michigan’s advanced STEM graduates could create more than 3,200 jobs for U.S.-born workers through new companies and higher productivity.

Work authorization and practical steps for employers and workers

Work authorization is the bridge between a job offer and a paycheck. Employers hiring noncitizens often rely on clear, timely employment authorization to stay compliant.

• Many foreign-born workers apply for employment authorization using Form I-765. See the official page: Form I-765 (Application for Employment Authorization).
• Specialty occupations may use Form I-129 for H-1B or other nonimmigrant petitions. Official guidance: Form I-129 (Petition for a Nonimmigrant Worker).

Common employer pathways and considerations:
1. Specialty occupations: File Form I-129 for engineers, analysts, and technical staff—confirm duties and degree requirements first.
2. Seasonal agriculture: Use the H-2A program and plan early in case processing slows.
3. Student pathways: Align offers with OPT or STEM extension timelines; coordinate with school advisors.

HR best practices observed across Michigan:
– Start petitions and renewals early given 2025 policy tension and growing backlogs.
– Maintain internal checklists to track expirations.
– Train staff on I-9 compliance and proactively communicate with candidates about start dates.

Licensing and skills transfer: making experience count

Professional licensing can be a major roadblock. Immigrant physicians, nurses, dentists, and engineers often face extra steps to convert foreign training into Michigan licenses, causing longer waits between arrival and full employment.

Community colleges, unions, and workforce boards offer bridging programs such as:
– English for specific professions
– Exam preparation
– Supervised practice hours

Scaling these efforts would let the state tap existing skills faster while protecting safety and standards.

Regional effects: beyond Detroit and Ann Arbor

Foreign-born workers buoy small and mid-sized communities as well as large cities.

• Kent County example: immigrants paid over $408 million in taxes and held $1.3 billion in spending power (2019).
  Local groups credit foreign-born residents with stabilizing school enrollments, filling shifts at regional hospitals, and opening businesses on previously vacant commercial strips.

According to analysis by VisaVerge.com, immigration policy changes that affect a nurse’s renewal or a mechanical engineer’s authorization can ripple across hospital wait times, school staffing, and local investments.

The link between immigration and population growth

Michigan faces lower birth rates and rising retirements. Foreign-born workers mitigate the squeeze by adding working-age adults faster than the U.S.-born population.

• Immigrants accounted for 57.7% of Michigan’s population gain over the past decade.
• For counties managing school funding or emergency services, steady headcounts can be the difference between cuts and stability.

State planning groups emphasize retaining and attracting talent—international students, families, and skilled workers—to support long-term growth. The Governor’s office and the Growing Michigan Together Council have highlighted immigrant inclusion in this strategy.

Innovation payoffs and the auto tech shift

Michigan is building the future of mobility—electric vehicles, batteries, autonomous software, and advanced materials require deep talent pools.

• Foreign-born engineers and scientists are central to battery chemistry labs, driver-assist software teams, and patent generation.
• If policy changes slow hiring or reduce certainty, firms may move R&D to other states or countries, risking jobs tied to EV supply chains and mobility software.

Securing these jobs requires reliable access to global talent, including those who choose to live in Michigan.

Fiscal stability and public debate

Debate continues about immigration’s budget effects, but Michigan’s current pattern is clear:

• Foreign-born residents contribute billions in taxes while filling hard-to-fill jobs.
• These contributions help stabilize public services and support pensions and healthcare systems strained by aging demographics.

Both critics and supporters acknowledge the same structural challenge: Michigan’s age structure is changing. The practical case for smoother work authorization and fair licensing is that it helps meet demand today and builds a more durable economy for tomorrow.

Practical guidance for employers and workers in 2025

• Plan early for hiring: Start employment authorization filings well ahead of target start dates. Review Form I-765 instructions, category codes, required evidence, and current fees.
• Use correct petitions for specialized roles: For specialty occupations, confirm duties and degree needs before filing Form I-129. Keep detailed job descriptions and wage data on file.
• Coordinate with schools for student hires: Align offers with OPT or STEM extension timelines and consult international student offices.
• Support licensing steps: Offer paid study time, mentorship, and connections to credential evaluation and test prep programs.
• Communicate clearly with candidates: Explain company support for filings and set expectations for start dates tied to valid authorization.
• Monitor policy updates: Check official federal guidance regularly so HR policies reflect the latest rules.

Operational habits that reduce risk:
– Keep internal calendars for renewals and set reminders 180 days ahead.
– Assign a point person to track cases.
– Workers should save copies of every filing, receipt, and approval notice and update HR when contact information changes.

The human side: two realistic scenarios

• Rural hospital example: A foreign-born internal medicine physician fills a year-long vacancy. Licensing verification delays the start, forcing the hospital to use costly temporary coverage and reduce clinic hours. After the doctor arrives, evening appointments are added, wait times fall by half, and emergency room strain eases.

• Auto supplier example: A new EV battery line depends on a foreign-born mechanical engineer. Work authorization delays threaten the launch and could push the project out of state. Timely authorization keeps the project in Michigan, adds two shifts of U.S.-born technicians, and secures new local contracts.

These scenarios show how small timing changes in paperwork can have large effects on jobs, services, and local economies.

What policymakers are weighing

Stakeholders broadly agree immigration supports prosperity, workforce stability, and innovation. Key priorities include:

1. Keep pathways open and predictable so employers can plan hiring and expansion.
2. Align licensing and training so qualified workers reach full practice faster.
3. Welcome international students and researchers who boost innovation and fill advanced roles.

Michigan’s location—bordering Canada and at the heart of the U.S. auto corridor—means regional competition for talent is fierce. Reducing friction for foreign-born workers can tip decisions in Michigan’s favor.

Looking ahead: risks and opportunities

Risks if 2025 changes become long-term hurdles:
– Slower job growth in immigrant-dependent sectors.
– Longer delays in healthcare access.
– Losses in harvests and agricultural exports.
– Shifts of R&D and production out of state.

Opportunities from targeted steps:
– Easing work authorization timelines and improving licensing could deliver quick wins—filling shifts, expanding paychecks, and strengthening the tax base that supports schools and services.

The broader aim is straightforward: Michigan needs more working-age residents, more new businesses, and steady population growth to remain competitive. Foreign-born workers already supply much of that growth. Policy choices that let them contribute—while protecting labor standards and public safety—will help secure Michigan’s future.

Implementation notes and official guidance

For official information on employment authorization:
– See Form I-765 (Application for Employment Authorization) for eligibility categories, filing steps, and current fee details.
– Employers petitioning for specialty roles can review Form I-129 (Petition for a Nonimmigrant Worker) for instructions and evidence lists.

Practical filing tips:
– Check these pages before filing to prevent rejections and reduce delays.
– Track expirations and set reminders.
– Keep copies of all filings and approvals.

Michigan’s economy is at a hinge point. With an aging population and strong demand across healthcare, agriculture, manufacturing, and tech, the state’s path forward depends on people. Data show foreign-born workers power new firms, pay billions in taxes, and make possible the public services neighbors count on every day. As debates continue in 2025, the most important measure of policy will be simple: does it help Michigan attract, keep, and empower the people who want to live, work, and build here?