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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Galen Health Institutes-Salt Lake City |
Midwives College of Utah |
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Eagle Gate College-Murray |
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Arizona College of Nursing-Salt Lake City |
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Fortis College-Salt Lake City |
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Neumont College of Computer Science |
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Westminster University |
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Joyce University of Nursing and Health Sciences |
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Western Wyoming Community College |
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Nightingale College |
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Ensign College |
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Salt Lake Community College |
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University of Utah |
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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
|
87
28
29,283
5,977
35,260
61
1
6
13
0
0
5
4
9
26,827
2
86
12
1
8,433
18
8,615
8,893
9,315
9,315
30,613
30,613
51,135
36,415
36,415
56,937
18,215
18,215
38,737
0
5,556
2,453
391
472
0
2,586
1,116
1,138
119
409
1,761
1,423
1,379
671
1,282
1,032
76
1,855
289
101
15,237 |
NA
NA
6,069
20,695
26,764
62
2
4
20
1
1
4
4
1
26,764
32
43
24
1
0
17
3,989
4,086
4,257
4,257
NA
NA
NA
24,635
24,635
34,079
9,121
9,121
18,565
2,938
NA
NA
NA
NA
NA
684
0
0
15
90
144
103
118
287
8
113
3
284
65
4
1,918 |
NA
NA
1,565
4,408
5,973
11
0
0
2
0
0
1
72
13
5,973
0
35
64
0
0
20
3,550
3,656
3,766
3,888
NA
NA
NA
15,660
15,660
15,660
8,732
8,732
8,732
290
40
0
0
0
0
91
0
0
2
15
43
4
4
0
3
0
2
4
0
0
168 |
NA
NA
2,807
1,458
4,265
28
17
18
21
2
1
0
12
0
4,244
0
12
88
0
21
12
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
4
534
1
0
0
0
198
0
0
1
142
113
14
19
19
19
0
0
44
0
0
569 |
NA
NA
765
1,699
2,464
79
0
1
15
0
1
4
0
1
2,464
39
40
21
0
0
12
3,456
3,600
3,600
4,250
16,860
16,860
23,160
19,570
19,570
25,870
8,150
8,150
14,450
252
17
0
0
0
0
121
0
0
5
14
27
3
19
21
1
30
2
33
7
4
287 |
89
99
1,257
680
1,937
69
2
4
14
1
1
1
8
0
1,892
0
41
59
0
45
25
19,596
19,596
22,603
20,780
NA
NA
NA
33,373
33,373
33,373
25,617
25,617
25,617
609
370
47
0
0
0
144
0
0
0
54
18
28
0
0
0
0
15
19
0
0
278 |
69
13
1,108
106
1,214
68
2
3
13
2
0
4
3
5
895
0
89
10
0
319
8
37,960
38,680
40,352
41,416
57,867
57,867
57,867
61,707
61,707
61,707
46,600
46,600
46,600
0
327
130
0
6
0
170
0
0
4
19
59
22
13
39
7
17
6
21
8
0
385 |
89
18
486
44
530
51
8
4
16
1
2
4
15
0
530
0
95
5
0
0
25
25,440
25,995
26,505
27,375
47,619
47,619
47,619
42,786
42,786
42,786
32,895
32,895
32,895
10
104
0
0
0
0
16
0
0
0
20
8
6
5
0
0
1
0
3
0
0
59 |
NA
NA
304
67
371
45
4
8
23
12
1
6
2
0
371
0
39
61
0
0
16
15,524
14,240
16,255
13,112
NA
NA
NA
36,871
36,871
36,871
18,871
18,871
18,871
80
NA
NA
NA
NA
NA
21
0
0
1
0
8
3
0
2
1
0
0
3
0
0
39 |
100
33
231
92
323
63
4
4
20
3
1
4
0
0
323
0
37
63
0
0
20
20,170
20,826
21,946
22,586
NA
NA
NA
44,933
44,933
44,933
29,623
29,623
29,623
0
13
0
0
0
0
19
0
0
0
3
7
0
1
1
0
0
0
3
0
0
34 |
NA
NA
313
0
313
47
6
6
17
3
2
2
18
0
263
0
33
67
0
50
22
14,900
17,112
17,112
16,491
NA
NA
NA
37,431
37,431
37,431
21,546
21,546
21,546
0
58
12
0
0
0
14
0
0
1
4
4
0
0
0
0
0
0
6
0
0
29 |
60
67
256
2
258
58
17
1
10
0
2
4
7
0
253
0
8
92
0
5
4
7,635
7,719
7,919
8,256
NA
NA
NA
55,776
55,776
55,776
23,986
23,986
23,986
2
24
1
0
0
0
11
0
0
0
0
8
2
1
1
0
0
0
1
0
0
24 |
NA
NA
39
24
63
73
6
2
0
2
3
0
14
0
63
0
37
63
0
0
12
NA
NA
NA
15,860
NA
NA
NA
37,969
37,969
37,969
22,309
22,309
22,309
0
NA
NA
NA
NA
NA
1
0
0
0
0
2
0
0
0
0
1
0
1
0
0
5 |
Sources: STI: PopStats and STI: Colossus
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