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.
|
Barton College |
Wilson Community College |
|
University of Mount Olive |
|
Lenoir Community College |
|
Wayne Community College |
|
Pitt Community College |
|
East Carolina University |
|
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
|
90
20
20,165
6,620
26,785
63
17
3
9
0
1
4
4
1
21,328
2
82
16
0
5,457
17
7,239
7,297
7,325
7,361
24,331
24,331
40,608
24,365
24,365
40,642
13,646
13,646
29,923
0
4,829
1,443
82
241
0
1,496
97
289
7
221
155
295
374
283
313
681
2
1,078
140
18
5,449 |
NA
NA
2,493
4,878
7,371
48
33
1
11
0
1
3
3
0
7,371
21
55
24
0
0
13
1,940
1,940
1,940
1,972
NA
NA
NA
20,310
20,310
24,918
11,386
11,386
15,994
1,112
NA
NA
NA
NA
NA
263
0
0
6
61
50
9
19
53
0
16
0
112
4
0
593 |
NA
NA
849
2,034
2,883
52
22
1
22
0
0
2
1
0
2,883
22
45
33
0
0
12
2,524
2,524
2,524
2,524
NA
NA
NA
17,524
17,524
23,668
7,974
7,974
14,118
532
NA
NA
NA
NA
NA
156
0
0
4
51
40
7
10
17
0
39
0
41
0
0
365 |
NA
NA
651
1,736
2,387
49
30
1
17
0
1
2
0
0
2,387
36
37
26
0
0
10
2,568
2,568
2,568
2,568
NA
NA
NA
19,150
19,150
25,294
11,195
11,195
17,339
359
NA
NA
NA
NA
NA
139
0
19
3
4
19
1
9
13
0
18
0
66
0
0
291 |
78
20
1,356
772
2,128
53
26
1
10
0
1
5
1
3
1,937
2
53
45
1
191
19
22,194
22,618
23,592
25,950
40,512
40,512
40,512
35,100
35,100
35,100
29,100
29,100
29,100
56
456
100
0
0
0
86
0
0
3
25
40
9
6
31
2
15
0
18
0
1
236 |
NA
NA
300
1,451
1,751
41
32
1
19
0
0
2
5
0
1,751
35
37
28
0
0
9
2,572
2,572
2,572
2,572
NA
NA
NA
19,582
19,582
25,726
9,132
9,132
15,276
243
NA
NA
NA
NA
NA
89
0
0
2
18
24
6
5
4
0
20
0
16
0
0
184 |
96
13
1,038
221
1,259
53
30
1
10
0
0
1
0
4
1,163
0
81
19
0
96
14
32,590
33,430
34,400
35,600
52,150
52,150
52,150
53,610
53,610
53,610
39,100
39,100
39,100
0
236
49
0
0
0
74
0
0
3
3
36
11
5
51
8
22
0
17
6
0
236 |
Sources: STI: PopStats and STI: Colossus
|