Michigan’s economic strategy relies on immigration

A version of this column originally appeared in Michigan Advance.

Since the early 2000s, Michigan governors, Republican and Democratic alike, have recognized immigration’s important role in revitalizing the state’s economy. Former Republican governor Rick Snyder exemplified this sentiment in 2011, saying: “Immigration made us a great state and country. We need to embrace the concept again as a way to speed our reinvention.” Since then, economic trends have spotlighted the growing importance of immigrant community members to Michigan’s economic development goals. We reviewed several state strategies and reports that pointed to the importance of immigrants as crucial drivers of growth, innovation and economic revitalization. 

In recent years, a growing chorus of experts, from state demographers to the private sector, have highlighted the challenges that population decline poses in Michigan. For most of the last 30 years, Michigan has ranked second-to-last for population growth in the nation. Congressional seats have fallen from 19 to 13 since 1970, which means less federal representation and less federal money flowing into the state. The baby boomer generation is aging out, meaning deaths will soon outpace births and deepen that decline through 2050, putting pressure on state finances and the labor force. 

In response, Michigan has set a goal of becoming a top 10 population growth state by 2050, a goal its own planners acknowledge requires attracting significantly more newcomers. The Growing Michigan Together (GMT) council, a bipartisan group of influential economic stakeholders, calls population decline a “significant threat” to the state’s prosperity. However, international immigration represents a demographic “bright spot,” according to their report. Over the last decade, immigrants provided nearly 60% of the state’s population growth and every percentage point of it in 2024, positioning immigrants as crucial to Michigan’s future. 

The workforce numbers tell the same story, sector by sector. The Michigan Statewide Workforce Plan identified key areas of job growth over the coming decade in sectors that are crucial to the state. These include health care, construction, technology, and advanced manufacturing — all sectors where immigrants are significant contributors. For example, Michigan needs 862 more primary care physicians by 2030 just to maintain a doctor-to-resident ratio that already sits below the national average — and immigrants currently make up 28% of the state’s physicians. Additionally, immigrants represent 30% of Michigan’s software developers and 14% of auto manufacturing workers in an industry the state is counting on to transition and compete globally.

A similar dynamic applies to the construction sector, where 41% of workers will be retirement-eligible by 2030, threatening the state’s ability to address an infrastructure system that earned a C- from the American Society of Civil Engineers, with roads and water systems among the worst in the nation. The Michigan Statewide Infrastructure Workforce Plan notes that the state’s skilled trades sectors confront a dual challenge: aging workers heading toward retirement and insufficient replacements, which together threaten Michigan’s ability to maintain essential infrastructure capabilities.

Then there’s the innovation economy Michigan is trying to build. Immigrants are 80% more likely to start businesses than native-born residents and have strong investment potential. To bolster Michigan’s start-up scene, the GMT lists the attraction of young talent as a core strategy. Inclusive labor market policies that support immigrant integration and participation also play a role. Polling by the Detroit Chamber of Commerce shows that a welcoming environment is a priority among young professionals making decisions about where to move.

Unfortunately, structural barriers prevent many skilled immigrants from contributing to the state’s economy. Since 2008, Michigan has implemented a self-inflicted barrier that limits labor market participation: nearly 100,000 people have been blocked from obtaining Michigan driver’s licenses based on immigration status alone. Meanwhile, by September 2025, nearly one million immigrants nationally had lost legal work authorization under the Trump administration, draining workers from the exact sectors Michigan’s strategy depends on. A Detroit clinic owner and naturalized citizen originally from Costa Rica described being afraid to speak Spanish outside her own neighborhood. That fear doesn’t stay home when people go to work — it follows them, and it follows Michigan’s economy.

Michigan’s future depends on more than plans — it depends on people. Without enough working-age residents, the state’s ambitious economic goals will remain out of reach. Immigration is not a silver bullet, but it is one of the few tools with the scale and speed to make a meaningful impact.