New study demonstrates huge local economic impact of universities
31 July 2020
Universities typically support up to one additional job in the immediate local economy for every person they directly employ, according to a new analysis by Hatch Regeneris for UCU.
Universities are often among the largest local employers, with 19 UK institutions directly employing more than 5,000 people, and 10 of these accounting for at least 5% of all jobs in their local authority area.
The positive effects of universities on local employment are compounded where cities host more than one institution. The review modelled universities in 25 cities and looked at the number of jobs they support and how they bolster local economies.
It estimates that 22,000 jobs in Manchester, 150,000 in London, 18,000 in Birmingham, 22,000 in Glasgow, 29,000 in Edinburgh and 15,000 in Cardiff are dependent directly or indirectly on their universities.
The study also showed the critical importance of single institutions to smaller towns and cities. The researchers cite St Andrews where students make up a third of the local population and the university supports over 4,000 jobs.
Universities bring relatively high wages to these areas as well as associated skilled jobs across a range of occupations including construction, engineering and entertainment. This includes places such as Plymouth, Middlesbrough, Stoke and Swansea where at least 5% of local jobs are linked in one way or another to the local institution.
In the North-East, there are more people directly employed in higher education (20,000) than there are in car manufacturing (9,000). These jobs are at a range of skill levels, but, on average, they are high-quality and well-paid. The average salary at the University of Sunderland, for example, is more than a third higher than the average for all jobs in the city.
The review analysed 74 existing studies of institutions' impact and modelled a further 90 in order to produce the comprehensive picture of UK universities' role in their local economy. It produced detailed analysis of 25 cities highlighting the number of jobs universities support and measuring their economic contribution.
The analysis looks at goods and services produced locally through universities' supply chains and the money spent by employees and students. The figures show how universities are often among the single largest contributors to the local economy.
UCU general secretary Jo Grady said: 'This review shows that universities are a very significant factor in many local economies. Allowing universities to fail because of the health crisis will mean the economies of many of our towns and cities will also fail. Universities are vital in providing educational opportunities, but they also have a huge impact in creating local jobs, supporting local businesses, and attracting business to the area.
'With every university job leading to another job in the local area, it is now vital that instead of talking our universities down the government protects them. The Welsh government has led the way and the Westminster government now needs to come up with a comprehensive financial support package to ensure that no institution will fail.'
Hatch Regeneris director Tim Fanning said: 'The evidence from this review implies that areas hosting institutions that are vulnerable to contraction could be exposed to a wider economic shock - even before we consider the effect on access to university, local labour markets, and research and innovation.
'From the point of view of the government's levelling up agenda, the data also shows that places that are lagging behind economically are sometimes especially dependent on their local university.'
Recent YouGov polling for UCU highlighted how people recognised the importance of their local university on jobs and the economy. Two-thirds (66%) said they feared that there would be a negative impact on the local economy if student numbers dropped as a result of the Covid-19 crisis. While three-quarters (75%) feared a negative impact should a local university go bust.
A third of those in work (33%) said the local university was important to their own job. While over two-fifths (42%) said they knew someone who studied or worked at a local university, or whose employment depended at least in part on the university.
A report from UCU in April warned of a £2.5bn loss in income for universities from a drop in student numbers, which would result in a £6bn hit for the economy. While a report from the Institute for Fiscal Studies earlier this month predicted that the pandemic would leave some universities struggling to survive.
City | Institution | Direct jobs within the Uni (FTE) | All jobs (including supply chain, induced, student and visitor spend) | indirect, induced, student and visitor related jobs | Multiplier (=ratio between direct jobs and all jobs) | Total local GVA, £m (including multipliers) |
Birmingham | Aston University | 1,790 | 3,050 | 1,260 | 1.71 | 160 |
---|---|---|---|---|---|---|
Birmingham City University | 2,520 | 4,600 | 2,080 | 1.82 | 280 | |
Newman University | 310 | 550 | 240 | 1.75 | 30 | |
The University of Birmingham | 7,450 | 8,700 | 1,250 | 1.17 | 530 | |
University College Birmingham | 580 | 1,000 | 420 | 1.74 | 60 | |
All Birmingham | 12,640 | 17,910 | 5,270 | 1.42 | 1,050 | |
Bradford | The University of Bradford | 1,260 | 2,100 | 840 | 1.67 | 120 |
All Bradford | 1,260 | 2,100 | 840 | 1.67 | 120 | |
Brighton | The University of Brighton | 2,410 | 4,900 | 2,490 | 2.04 | 480 |
The University of Sussex | 2,570 | 5,180 | 2,610 | 2.02 | 340 | |
All Brighton | 4,970 | 10,080 | 5,110 | 2.03 | 820 | |
Bristol | The University of Bristol | 6,580 | 16,030 | 9,450 | 2.44 | 920 |
University of the West of England, Bristol | 3,220 | 7,830 | 4,610 | 2.44 | 400 | |
All Bristol | 9,800 | 23,860 | 14,060 | 2.44 | 1,320 | |
Cambridge | Anglia Ruskin University | 1,960 | 3,770 | 1,810 | 1.92 | 240 |
The University of Cambridge | 11,310 | 24,700 | 13,390 | 2.18 | 1,800 | |
All Cambridge | 13,260 | 28,460 | 15,200 | 2.15 | 2,040 | |
Cardiff | Cardiff Metropolitan University | 1,140 | 2,310 | 1,170 | 2.03 | 140 |
Cardiff University | 6,040 | 9,360 | 3,320 | 1.55 | 500 | |
University of South Wales | 1,980 | 3,070 | 1,090 | 1.55 | 260 | |
All Cardiff | 9,160 | 14,740 | 5,580 | 1.61 | 900 | |
Coventry | Coventry University | 4,020 | 6,130 | 2,110 | 1.53 | 390 |
The University of Warwick | 6,230 | 7,560 | 1,330 | 1.21 | 530 | |
All Coventry | 10,240 | 12,400 | 2,160 | 1.34 | 920 | |
Edinburgh | Edinburgh Napier University | 1,430 | 2,900 | 1,470 | 2.03 | 350 |
Heriot-Watt University | 1,800 | 3,830 | 2,030 | 2.13 | 180 | |
Queen Margaret University, Edinburgh | 420 | 840 | 420 | 2.03 | 50 | |
The University of Edinburgh | 10,480 | 21,310 | 10,830 | 2.03 | 1,420 | |
All Edinburgh | 14,120 | 28,880 | 14,760 | 2.05 | 2,000 | |
Glasgow | Glasgow Caledonian University | 1,400 | 5,920 | 4,520 | 4.24 | 480 |
Glasgow School of Art | 450 | 700 | 250 | 1.55 | 40 | |
Royal Conservatoire of Scotland | 290 | 430 | 140 | 1.5 | 30 | |
The University of Glasgow | 6,340 | 9,000 | 2,660 | 1.42 | 500 | |
The University of Strathclyde | 3,580 | 5,530 | 1,950 | 1.55 | 350 | |
All Glasgow | 12,050 | 21,570 | 9,520 | 1.79 | 1,400 | |
Hull | The University of Hull | 2,300 | 4,100 | 1,800 | 1.78 | 370 |
All Hull | 2,300 | 4,100 | 1,800 | 1.78 | 370 | |
Leeds | Leeds Arts University | 240 | 410 | 170 | 1.73 | 20 |
Leeds Beckett University | 2,340 | 4,180 | 1,840 | 1.79 | 250 | |
Leeds Trinity University | 380 | 670 | 290 | 1.79 | 40 | |
The University of Leeds | 7,710 | 11,680 | 3,970 | 1.52 | 730 | |
All Leeds | 10,650 | 16,930 | 6,280 | 1.59 | 1,040 | |
Leicester | De Montfort University | 2,340 | 4,400 | 2,060 | 1.88 | 250 |
The University of Leicester | 3,460 | 5,190 | 1,730 | 1.5 | 310 | |
All Leicester | 5,800 | 9,590 | 3,790 | 1.65 | 560 | |
Liverpool | Liverpool Hope University | 630 | 1,080 | 450 | 1.71 | 60 |
Liverpool John Moores University | 2,470 | 4,900 | 2,430 | 1.98 | 260 | |
Liverpool School of Tropical Medicine | 520 | 640 | 120 | 1.23 | 50 | |
The Liverpool Institute for Performing Arts | 140 | 220 | 80 | 1.62 | 10 | |
The University of Liverpool | 5,600 | 10,790 | 5,190 | 1.93 | 650 | |
All Liverpool | 9,360 | 17,620 | 8,260 | 1.88 | 1,030 | |
Lincoln | Bishop Grosseteste University | 320 | 480 | 160 | 1.54 | 20 |
The University of Lincoln | 1,770 | 2,350 | 580 | 1.33 | 180 | |
All Lincoln | 2,080 | 2,830 | 750 | 1.36 | 200 | |
Manchester | Royal Northern College of Music | 240 | 390 | 150 | 1.67 | 20 |
The Manchester Metropolitan University | 3,940 | 7,630 | 3,690 | 1.94 | 400 | |
The University of Manchester | 10,250 | 13,970 | 3,720 | 1.36 | 830 | |
All Manchester | 14,420 | 21,990 | 7,570 | 1.53 | 1,250 | |
Middlesbrough | Teesside University | 1,670 | 2,980 | 1,310 | 1.79 | 170 |
All Middlesbrough | 1,670 | 2,980 | 1,310 | 1.79 | 170 | |
Newcastle | Newcastle University | 5,680 | 8,850 | 3,170 | 1.56 | 490 |
University of Northumbria at Newcastle | 2,720 | 4,670 | 1,950 | 1.72 | 280 | |
All Newcastle | 8,400 | 13,520 | 5,120 | 1.61 | 770 | |
Nottingham | The Nottingham Trent University | 3,800 | 7,340 | 3,540 | 1.93 | 580 |
University of Nottingham | 7,110 | 8,750 | 1,640 | 1.23 | 720 | |
All Nottingham | 10,910 | 16,090 | 5,180 | 1.48 | 1,300 | |
Oxford | Oxford Brookes University | 2,000 | 4,370 | 170 | 2.19 | 170 |
The University of Oxford | 13,180 | 28,790 | 2,000 | 2.18 | 2,000 | |
All Oxford | 15,180 | 33,160 | 2,160 | 2.18 | 2,160 | |
Plymouth | Plymouth College of Art | 230 | 360 | 130 | 1.6 | 20 |
University of Plymouth | 2,530 | 4,780 | 2,250 | 1.89 | 270 | |
University of St Mark and St John | 270 | 490 | 220 | 1.86 | 30 | |
All Plymouth | 3,020 | 5,630 | 2,610 | 1.87 | 320 | |
Sheffield | Sheffield Hallam University | 3,670 | 9,340 | 5,670 | 2.54 | 420 |
The University of Sheffield | 6,850 | 10,180 | 3,330 | 1.49 | 670 | |
All Sheffield | 10,520 | 19,520 | 9,000 | 1.86 | 1,090 | |
Southampton | Solent University | 1,130 | 3,730 | 2,600 | 3.3 | 190 |
The University of Southampton | 5,670 | 14,020 | 8,350 | 2.47 | 900 | |
All Southampton | 6,800 | 17,750 | 10,950 | 2.61 | 1,090 | |
Stoke-on-Trent | Keele University | 1,810 | 3,420 | 1,610 | 1.89 | 160 |
Staffordshire University | 1,150 | 2,750 | 1,600 | 2.39 | 120 | |
All Stoke-on-Trent | 2,960 | 6,170 | 3,210 | 2.09 | 280 | |
Wolverhampton | The University of Wolverhampton | 2,200 | 3,730 | 1,530 | 1.7 | 220 |
All Wolverhampton | 2,200 | 3,730 | 1,530 | 1.7 | 220 | |
London | Birkbeck College | 1,130 | 2,810 | 1,680 | 2.49 | 170 |
Brunel University London | 1,940 | 7,560 | 5,620 | 3.9 | 510 | |
City, University of London | 2,120 | 5,810 | 3,690 | 2.74 | 400 | |
Conservatoire for Dance and Drama | 400 | 770 | 370 | 1.93 | 10 | |
Courtauld Institute of Art | 140 | 310 | 170 | 2.21 | 40 | |
Goldsmiths College | 1,360 | 3,700 | 2,340 | 2.72 | 230 | |
Guildhall School of Music and Drama | 320 | 700 | 380 | 2.19 | 40 | |
Imperial College of Science, Technology and Medicine | 7,840 | 16,330 | 8,490 | 2.08 | 1,310 | |
King's College London | 7,420 | 17,100 | 9,680 | 2.3 | 1,220 | |
Kingston University | 1,670 | 3,850 | 2,180 | 2.31 | 220 | |
London Business School | 810 | 1,680 | 870 | 2.07 | 190 | |
London Metropolitan University | 880 | 2,620 | 1,740 | 2.98 | 150 | |
London School of Economics and Political Science | 2,930 | 6,720 | 3,790 | 2.29 | 590 | |
London School of Hygiene and Tropical Medicine | 1,420 | 2,180 | 760 | 1.54 | 190 | |
London South Bank University | 1,400 | 4,180 | 2,780 | 2.99 | 310 | |
Middlesex University | 1,730 | 5,310 | 3,580 | 3.07 | 370 | |
Queen Mary University of London | 4,380 | 7,780 | 3,400 | 1.78 | 560 | |
Ravensbourne University London | 230 | 740 | 510 | 3.22 | 50 | |
Roehampton University | 980 | 3,280 | 2,300 | 3.35 | 220 | |
Rose Bruford College of Theatre and Performance | 70 | 210 | 140 | 3 | 20 | |
Royal Academy of Music | 220 | 500 | 280 | 2.27 | 30 | |
Royal College of Art | 390 | 990 | 600 | 2.54 | 100 | |
Royal College of Music | 230 | 510 | 280 | 2.22 | 40 | |
SOAS University of London | 940 | 2,020 | 1,080 | 2.15 | 140 | |
St George's, University of London | 770 | 1,850 | 1,080 | 2.4 | 130 | |
St Mary's University, Twickenham | 620 | 1,740 | 1,120 | 2.81 | 100 | |
The Institute of Cancer Research | 1,030 | 1,840 | 810 | 1.79 | 210 | |
The Royal Central School of Speech and Drama | 200 | 420 | 220 | 2.1 | 30 | |
The Royal Veterinary College | 910 | 1,630 | 720 | 1.79 | 120 | |
The University College of Osteopathy | 80 | 190 | 110 | 2.38 | 10 | |
The University of East London | 1,250 | 3,770 | 2,520 | 3.02 | 240 | |
The University of Greenwich | 1,680 | 5,210 | 3,530 | 3.1 | 340 | |
The University of West London | 950 | 1,850 | 900 | 1.95 | 90 | |
The University of Westminster | 1,600 | 5,120 | 3,520 | 3.2 | 410 | |
Trinity Laban Conservatoire of Music and Dance | 280 | 650 | 370 | 2.32 | 40 | |
University College London | 11,980 | 22,410 | 10,430 | 1.87 | 1,760 | |
University of London (Institutes and activities) | 930 | 1,370 | 440 | 1.47 | 120 | |
University of the Arts, London | 2,720 | 6,790 | 4,070 | 2.5 | 540 | |
All London | 65,950 | 152,500 | 86,550 | 2.31 | 11,250 |
- PrintPrint this page
- Share
Comments