Universities play a crucial role in shaping local economies by driving employment, fostering business growth, attracting investment, and enhancing the overall quality of life in their host communities. Their economic impact extends beyond direct spending to include long-term benefits such as workforce development, innovation, and cultural enrichment. Below, we explore the key ways in which a university influences a local economy.
- Direct Employment and Spending
A university is often one of the largest employers in a local area, providing jobs for faculty, administrative staff, maintenance workers, and other professionals. These employees spend their salaries on housing, groceries, transportation, and entertainment, injecting money into the local economy. Additionally, universities spend significant amounts on construction, utilities, and local services, further stimulating business activity.
Students also contribute to local spending. Many bring outside money into the community through tuition payments, federal aid, and personal expenditures on rent, food, and retail. A large student population can sustain businesses such as bookstores, coffee shops, restaurants, and housing providers.
- Business Development and Entrepreneurship
Universities often serve as hubs for innovation and entrepreneurship. Research institutions, business incubators, and technology transfer offices help commercialize academic research, leading to startup formation and industry partnerships. For example, Stanford University's role in Silicon Valley's growth demonstrates how academic institutions can spur regional economic development.
Local businesses benefit from university partnerships, including procurement contracts for supplies, catering, and maintenance services. Furthermore, universities attract conferences, sporting events, and cultural activities that generate tourism revenue for hotels, restaurants, and transportation services.
- Human Capital and Workforce Development
A well-educated workforce is essential for economic competitiveness. Universities produce graduates with specialized skills that attract high-paying industries, such as technology, healthcare, and finance. Many graduates remain in the area, filling critical roles in local businesses and government.
Universities also offer continuing education programs, professional certifications, and workforce training initiatives that help upskill local employees, making the regional labor market more adaptable to industry changes.
- Real Estate and Infrastructure Growth
The presence of a university can drive demand for housing, both from students and faculty. This often leads to the development of new apartments, condominiums, and mixed-use commercial spaces. Over time, universities contribute to urban revitalization by investing in campus expansions, public transit improvements, and community amenities like libraries and parks.
However, rapid growth can also lead to challenges, such as rising housing costs and gentrification, which may displace long-term residents. Local governments must balance economic expansion with policies that ensure affordable housing and equitable development.
- Cultural and Social Contributions
Beyond economics, universities enrich local culture through arts programs, public lectures, and athletic events. These activities improve residents' quality of life, making the area more attractive to businesses and skilled workers. A vibrant university town often sees increased property values and a more diverse, engaged community.
Conclusion
The economic impact of a university on a local economy is multifaceted, encompassing job creation, business growth, talent development, and infrastructure investment. While challenges such as affordability and displacement must be managed, the long-term benefits-including innovation, increased tax revenues, and a more dynamic workforce-make universities vital engines of regional prosperity. By fostering collaboration between academia, government, and industry, communities can maximize these advantages while ensuring inclusive growth.
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Shasta Bible College and Graduate School |
Pacific Bible College |
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Simpson University |
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College of the Siskiyous |
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Klamath Community College |
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Rogue Community College |
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Oregon Institute of Technology |
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Southern Oregon University |
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California State Polytechnic University-Humboldt |
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Shasta College |
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Percent admitted - total Admissions yield - total
Full-time enrollment Part-time enrollment
Total enrollment % White % Black % Asian % Hispanic % Native Hawaiian or Other Pacific Islander % American Indian or Alaska Native % two or more races % Race/ethnicity unknown % U.S. Nonresident
Undergraduate enrollment % under 18 % 18-24 % 25-64 % over 65
Graduate enrollment
Student-to-faculty ratio
Tuition and fees, 2020-21 2021-22 2022-23 2023-24
Total price for In-district students living on campus 2023-24 In-state students living on campus 2023-24 Out-of-state students living on campus 2023-24
In-district students living off campus (no family) 2023-24 In-state students living off campus (no family) 2023-24 Out-of-state students living off campus (no family) 2023-24
In-district students living off campus (w/ family) 2023-24 In-state students living off campus (w/ family) 2023-24 Out-of-state students living off campus (w/ family) 2023-24
Associate's degree Bachelor's degree Master's degree Doctor's degree - research/scholarship Doctor's degree - professional practice Doctor's degree - other
Instructional FTE Research FTE Public Service FTE Librarians, Curators, and Archivists FTE Student/Academic Affairs and Other Education Services FTE Management FTE Business and Financial Operations FTE Computer, Engineering, and Science FTE Community Service, Legal, Arts, and Media FTE Healthcare FTE Service FTE Sales and Related FTE Office and Administrative Support FTE Natural Resources, Construction, and Maintenance FTE Production, Transportation, and Material Moving FTE Total FTE staff
|
NA
NA
2,966
5,115
8,081
61
2
4
20
0
2
8
2
0
8,081
25
40
34
1
0
26
1,187
1,189
1,191
1,197
12,253
12,253
19,333
29,863
29,863
36,943
5,958
5,958
13,038
1,036
11
0
0
0
0
198
0
0
0
11
109
15
10
15
1
41
0
127
0
0
527 |
99
7
5,272
884
6,156
50
3
3
29
0
1
7
5
0
5,594
1
76
23
0
562
14
7,858
7,864
7,864
7,913
25,657
25,657
37,537
26,471
26,471
38,351
12,491
12,491
24,371
0
1,360
184
0
0
0
352
1
0
15
23
38
147
74
145
17
54
0
92
41
14
1,013 |
83
22
2,643
2,728
5,371
46
1
2
11
1
1
7
30
1
4,368
29
53
18
0
1,003
23
10,710
11,142
11,691
12,093
30,840
30,840
49,470
30,032
30,032
48,662
14,592
14,592
33,222
0
627
222
0
0
0
162
0
0
7
3
8
213
23
3
2
31
0
38
20
0
510 |
92
9
2,125
2,978
5,103
63
2
7
16
1
1
7
3
1
5,012
37
44
19
0
91
14
11,269
11,622
12,122
12,687
28,923
28,923
51,828
32,128
32,128
55,033
17,319
17,319
40,224
21
637
37
0
0
0
212
1
3
7
12
50
88
18
26
4
29
1
35
19
0
505 |
NA
NA
1,501
2,289
3,790
65
1
2
24
1
1
5
3
0
3,790
9
46
44
0
0
18
5,040
5,184
5,184
5,184
NA
NA
NA
25,035
25,035
26,043
10,416
10,416
11,424
428
NA
NA
NA
NA
NA
161
0
0
7
2
36
13
24
18
0
21
0
77
2
0
361 |
NA
NA
575
1,361
1,936
63
1
2
20
0
3
6
6
0
1,936
34
35
31
0
0
18
4,497
4,713
4,713
4,857
NA
NA
NA
24,249
24,249
27,201
10,356
10,356
13,308
267
NA
NA
NA
NA
NA
62
0
0
5
50
27
8
11
0
0
12
1
26
5
0
207 |
NA
NA
604
826
1,430
61
3
3
18
1
3
8
4
1
1,430
20
43
35
2
0
12
1,444
1,444
1,444
1,444
17,186
17,186
25,136
25,799
25,799
33,749
9,571
9,571
17,521
254
NA
NA
NA
NA
NA
59
0
0
2
4
8
5
5
9
0
18
0
45
0
0
155 |
99
19
726
181
907
48
3
6
25
1
1
8
2
7
755
2
69
29
0
152
15
33,630
35,900
37,480
38,522
54,622
54,622
54,622
63,581
63,581
63,581
43,331
43,331
43,331
0
192
49
0
0
0
60
0
0
0
31
19
8
3
26
1
7
0
10
0
1
166 |
93
23
6
38
44
89
2
0
0
0
0
9
0
0
44
0
23
75
2
0
4
4,370
4,812
5,244
6,555
NA
NA
NA
26,330
26,330
26,330
8,230
8,230
8,230
1
0
0
0
0
0
5
0
0
0
1
0
0
0
0
0
0
0
1
0
0
7 |
100
50
6
14
20
70
5
0
15
0
0
10
0
0
13
0
15
85
0
7
3
12,960
12,585
14,560
14,535
26,635
26,635
26,635
34,535
34,535
34,535
19,635
19,635
19,635
1
7
5
0
0
0
8
0
0
1
0
0
1
0
0
0
0
0
2
0
0
12 |
Sources: STI: PopStats and STI: Colossus
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