University System of Georgia Achieves $23.1 Billion Economic Impact

News Summary

The University System of Georgia has reported a remarkable economic impact of $23.1 billion, reflecting a 5.4% increase from the previous year. This growth is fueled by student spending and job creation, resulting in 168,635 jobs across the state. Graduates from the Class of 2024 are projected to earn significantly more compared to their non-college-educated peers, showcasing the long-term benefits of higher education. Overall, this ongoing economic contribution emphasizes the vital role of Georgia’s public colleges and universities in driving state prosperity.

Atlanta, Georgia – The University System of Georgia (USG) achieved a significant economic milestone in fiscal year 2024, generating an economic impact of $23.1 billion. This figure marks a 5.4% increase from the prior year’s impact of $21.9 billion. The chancellor of USG, Sonny Perdue, emphasized the critical role of Georgia’s 26 public colleges and universities in driving the state’s economy.

Of the total economic impact, approximately $15.2 billion is attributed to students’ spending along with operating costs associated with the USG institutions. The economy benefits further through a multiplier effect on local communities, adding another $7.9 billion to the state’s economic growth.

The USG institutions have also been pivotal in job creation, collectively generating around 168,635 full-time and part-time jobs within Georgia. Notably, about 32% of these jobs exist on-campus while the remaining 68% are found off-campus. The employment impacts of Georgia’s public colleges and universities are comparable to the cumulative effect of the state’s five largest employers.

Additionally, prospective graduates from the Class of 2024 can anticipate substantial economic benefits based on their educational achievements. Those earning a bachelor’s degree will earn, on average, $1.4 million more over their lifetimes than those without a degree. Further, graduates with a master’s degree can expect an additional $1.7 million in lifetime earnings, while Ph.D. holders can see earnings increase by nearly $2.5 million.

Earnings Increment by Educational Credentials

The expected earnings increment based on educational credentials is as follows:

• Certificate: +$292,582
• Associate degree: +$462,576
• Bachelor’s degree: +$1,414,108
• Master’s degree: +$1,717,175
• Professional degree: +$2,659,505
• Ph.D.: +$2,499,996

Overall, approximately 73,006 USG graduates from the Class of 2024 are projected to achieve combined lifetime earnings totaling $230 billion. This figure represents an increase of $73 billion compared to what these individuals would likely earn if they had not pursued higher education.

High School Graduates’ Earnings Potential

It is estimated that high school graduates who obtain a bachelor’s degree in Georgia will experience an 82% increase in their work-life earnings. This increase is notably higher than the national average, which stands at around 80%.

Background Data

The economic impact study was conducted by Jeff Humphreys, who is the director of the Selig Center for Economic Growth at the University of Georgia. The findings underline the vital contribution of Georgia’s public higher education system to the state’s economy, both in terms of direct economic impact and job creation, as well as the long-term financial benefits to graduates and their families.

In summary, the University System of Georgia continues to play a crucial role in stimulating economic growth and enhancing workforce potential across the state, reflecting the importance of education in shaping Georgia’s economic landscape and future prosperity.

Deeper Dive: News & Info About This Topic

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• Atlanta Journal-Constitution
• Encyclopedia Britannica: Georgia universities economic impact