Anderson Economic Group Work

The Economic Benefits of the Michigan New Jobs Training Program

As Michigan employers continue to regain their footing following the Great Recession, many are considering hiring new workers to help them meet the increased demand for their products and services. For some of these firms, the newly created jobs require specific skills and training. Historically, this training has been provided through a number of venues, including employer-sponsored programs as well as publicly funded programs.

One such program, the Michigan New Jobs Training Program (MNJTP), leverages the job training strengths of local community colleges to help employers fill newly created jobs. These localized, employer-driven job training programs are funded with the state Individual Income Tax revenue captured from newly created jobs. Demand for the program has outstripped the available funding (there is a statutory $50 million aggregate cap on the amount of outstanding training programs in any calendar year), which has prevented many employers from participating and has resulted in a waiting list.

The Michigan Community College Association (MCCA) commissioned Anderson Economic Group to review the MNJTP working under the current $50 million cap to determine the economic benefit of the program in 2012, and in the long-run. The MCCA also asked AEG to estimate the net impact on tax collections, after accounting for the colleges’ capture of the state Individual Income Tax revenue associated with newly created jobs. 

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