Hiring in the Midwest: Chicago and the Great Lakes states
A briefing for Italian and European companies on America’s industrial heartland: manufacturing, logistics, talent, wages and employment rules across six states.
The regional economy
The six Great Lakes states hold the largest concentration of U.S. manufacturing: autos and parts, machinery, food processing, chemicals and medical devices. Chicago adds finance, logistics and corporate headquarters.
European companies have been established here for decades, drawn by industrial supply chains, a central location, a large engineering workforce and costs below the coasts. In 2023 about 939,000 people worked for European-owned companies in the region.
Main industries and clusters
Automotive and batteries
Michigan, Ohio and Indiana anchor U.S. auto production; EV plans have been scaled back since 2025 but battery and storage projects continue.
Machinery and industrial equipment
Manufacturing is about 15% of jobs in Wisconsin and Indiana, roughly twice the national share.
Food and dairy processing
Wisconsin leads U.S. cheese production; food processing is a major employer across the region.
Medical technology
Minnesota is second in the U.S. for medical-device manufacturing, with a life-science sector of more than 330,000 jobs.
Logistics and freight
Chicago is the hub of the U.S. rail network and a major distribution center.
Chemicals and pharma
Illinois trades heavily with Europe; Italy is its fourth-largest European import source.
Talent, wages and competition
- Tight markets in Ohio, Indiana and Wisconsin (3.2–3.3% unemployment); more available labor in Michigan (5.0%) and Illinois (4.7%).
- Skilled trades are expensive in Chicago (construction trades about 30% above the national average), while IT roles cost slightly less than the U.S. average.
- Engineering wages are close to the national level in Detroit; production wages are slightly above it.
- Unions are stronger than in the South: membership of 13–14% in Minnesota, Illinois and Michigan against 10% nationally.
- Engineering pipeline from large public research universities: Illinois, Purdue, Michigan, Ohio State, Wisconsin and Minnesota.
What differs from state to state
Illinois and Chicago
- Minimum wage $15.00 statewide; Chicago $17.05 from July 2026.
- Pay range and benefits required in job postings for employers with 15+ employees.
- Non-competes void for employees earning $75,000 or less ($80,000 from 2027); non-solicits void at $45,000 or less.
- 40 hours of paid leave statewide; Chicago requires 40 hours of paid leave plus 40 hours of paid sick leave.
Minnesota and Michigan
- Minnesota bans non-competes (since 2023); its paid family and medical leave program began in January 2026 (0.88% premium); pay ranges required for employers with 30+ employees.
- Michigan minimum wage $13.73, rising to $15.00 in 2027; earned sick time of up to 72 hours (40 for small employers).
Ohio, Indiana and Wisconsin
- Lighter state rules: no statewide pay-transparency law and minimum wages of $11.00 (Ohio) or $7.25.
- Cleveland and Columbus have adopted their own pay-transparency ordinances.
- Low income taxes: Ohio flat 2.75%, Indiana 2.95% in 2026.
Summary for orientation only, current as of October 2026; not legal advice. See also our guide to rules by state.
Italian and European companies in the region
The UK, Germany and France are the largest European employers; German-owned companies alone employ more than 55,000 people in Michigan. Italy is represented by the Italy-America Chamber of Commerce Midwest in Chicago, the Italian Trade Agency office in Chicago and Italian consular offices in Chicago and Detroit. The Ferrero Group’s Ferrara Candy has its headquarters in downtown Chicago.
Cost of doing business
- Price levels (U.S. = 100): Chicago 103.6, Minneapolis 104.8, Detroit 100.3, Indianapolis 95.7 (BEA, 2024).
- Corporate taxes vary widely: Minnesota 9.8%, Illinois 9.5%, Wisconsin 7.9%, Michigan 6.0%, Indiana 4.9%; Ohio has no corporate income tax.
- Industrial real estate and labor generally cost less than on the coasts.
Questions employers ask
Where is it easiest to find manufacturing staff?
The largest pools are in Ohio, Michigan and Illinois. Ohio, Indiana and Wisconsin have the lowest unemployment, so those markets are tighter; Michigan has the most available labor.
Can we use a non-compete?
Not in Minnesota, where they are banned. In Illinois only for employees above $75,000 ($80,000 from 2027). Elsewhere courts apply a reasonableness test.
What paid leave must we offer?
There is no federal mandate. Illinois requires 40 hours of paid leave, Chicago 40 hours of paid leave plus 40 of sick leave, Michigan up to 72 hours of sick time, and Minnesota runs a paid family and medical leave program since 2026.
Explore the U.S. regions
Data sources
BLS state unemployment · BLS state employment (Ohio) · BEA state GDP (FRED) · BLS OEWS Chicago, May 2025 · Transatlantic Economy 2026 (AmCham EU) · Illinois DOL pay transparency · Minnesota Paid Leave (Faegre Drinker) · BLS union membership 2025
Figures are the latest available as of October 2026 (state unemployment: August 2026, preliminary; GDP: 2025; wages: BLS OEWS May 2025; foreign-affiliate jobs: BEA 2023). Regional totals are sums of state figures.
Hiring in the Midwest?
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