A new report released by the U.S. Treasury Department shows that Michigan is lagging significantly behind many other states in terms of the number of jobs produced by contracts awarded under the American Reinvestment and Recovery Act. The Detroit Free Press reports:
Nationwide, more than 30,000 jobs have been saved or created through 9,000 contracts worth a total of $16 billion.
In Michigan, about 400 jobs have been saved or created through federal contracts worth around $120 million – which could be read to suggest each job cost about $300,000 to create. In many cases, however, contractors reported that work is only now getting underway – or hasn’t yet – meaning many more jobs are expected to be created or saved.
“They do not tell the whole story of what is happening at that moment and what will happen over the life of that project or that contract,” said Leslee Fritz, directory of Michigan’s Economic Recovery Office. “They’re a single snapshot.”
The report only considers direct hiring by the contractors awarded the contracts, not subcontractors or ancillary servicers. It also only considers contracts for jobs that have already started.