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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Yeshivath Beth Moshe |
Fortis Institute-Scranton |
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Clarks Summit University |
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Johnson College |
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Geisinger Commonwealth School of Medicine |
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Pennsylvania State University-Penn State Scranton |
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Keystone College |
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Lackawanna College |
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Marywood University |
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University of Scranton |
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SUNY Broome Community College |
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Binghamton University |
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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
|
38
17
16,601
1,855
18,456
50
5
16
12
0
0
4
2
12
14,409
2
97
2
0
4,047
18
10,014
10,390
10,363
10,363
30,657
30,657
49,747
30,657
30,657
49,747
15,108
15,108
34,198
0
3,573
1,229
138
86
0
935
33
0
55
131
86
268
208
163
76
327
0
257
165
2
2,706 |
NA
NA
2,462
2,967
5,429
61
11
6
11
0
0
4
7
0
5,429
39
44
18
0
0
19
6,136
6,332
6,704
7,470
25,870
25,870
31,342
21,155
21,155
26,627
12,382
12,382
17,854
670
NA
NA
NA
NA
NA
172
0
0
6
65
30
27
16
13
1
44
0
48
2
8
432 |
84
13
4,057
768
4,825
70
4
4
11
0
0
3
3
5
3,666
0
98
2
0
1,159
13
47,084
48,462
50,312
52,309
72,399
72,399
72,399
65,681
65,681
65,681
58,181
58,181
58,181
1
872
421
13
65
0
314
0
0
14
39
65
57
45
86
4
89
2
104
73
3
895 |
84
16
2,397
453
2,850
68
3
2
9
0
0
2
5
11
1,874
1
92
7
0
976
11
36,928
37,284
38,226
39,570
58,744
58,744
58,744
58,510
58,510
58,510
49,662
49,662
49,662
0
354
454
3
7
0
208
0
0
4
16
34
21
8
38
1
23
0
59
17
0
429 |
NA
NA
1,389
550
1,939
53
15
1
18
0
0
3
8
0
1,939
5
63
32
0
0
22
16,130
16,130
17,340
17,950
34,170
34,170
34,170
30,288
30,288
30,288
22,240
22,240
22,240
363
111
0
0
0
0
72
0
0
0
61
52
9
7
20
0
12
0
23
0
0
256 |
80
13
769
282
1,051
65
13
1
8
0
1
3
9
1
978
1
75
24
1
73
12
17,000
17,300
17,450
17,850
33,350
33,350
33,350
26,650
26,650
26,650
24,550
24,550
24,550
17
194
30
0
0
0
73
0
0
5
15
18
13
7
30
0
2
2
9
0
0
174 |
95
11
789
49
838
68
6
10
12
0
0
3
1
0
837
3
89
8
0
1
11
14,486
14,838
15,140
15,180
NA
NA
NA
35,256
35,256
45,194
21,124
21,124
31,062
10
155
0
0
0
0
72
0
0
1
2
11
4
2
14
1
18
0
11
1
0
137 |
NA
NA
620
29
649
57
7
20
9
0
1
3
2
0
63
0
66
34
0
586
5
NA
NA
NA
11,131
NA
NA
NA
35,475
35,475
35,475
22,635
22,635
22,635
0
0
123
0
109
0
48
2
0
4
30
42
8
10
3
0
10
0
17
0
0
174 |
96
77
518
109
627
72
5
1
8
0
1
2
11
0
627
7
76
17
0
0
12
19,700
20,025
20,025
20,733
NA
NA
NA
33,953
33,953
33,953
24,533
24,533
24,533
174
NA
NA
NA
NA
NA
49
2
0
0
27
8
3
3
0
0
0
0
12
5
0
109 |
90
36
416
142
558
77
6
3
7
0
1
3
1
3
345
1
79
20
0
213
9
27,282
28,400
30,900
32,400
43,000
43,000
43,000
46,600
46,600
46,600
36,200
36,200
36,200
9
94
62
4
0
7
47
0
0
2
21
8
3
2
11
0
0
0
4
4
0
102 |
NA
NA
205
0
205
51
19
5
20
0
0
4
1
0
205
0
46
54
0
0
10
28,087
28,190
15,880
14,444
NA
NA
NA
31,846
31,846
31,846
20,376
20,376
20,376
45
NA
NA
NA
NA
NA
20
0
0
0
0
6
2
0
4
1
0
0
2
0
0
35 |
100
93
41
0
41
100
0
0
0
0
0
0
0
0
39
5
95
0
0
2
10
9,800
9,800
10,200
10,400
20,400
20,400
20,400
NA
NA
NA
NA
NA
NA
12
0
0
0
0
0
4
0
0
0
0
1
1
0
0
0
4
0
0
0
0
10 |
Sources: STI: PopStats and STI: Colossus
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