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Universities deliver a strong economy by boosting local and regional growth and equipping graduates with skills to support the UK’s future.
£
130
bn
Universities contribute around £130 billion to the UK economy
11
m
More than 11 million extra graduates will be needed to fill jobs in the UK by 2035
£
11.6
bn
Between 2021 and 2026, UK universities will provide more than £11.6 billion of support and services to small enterprises, businesses, and not-for-profits
Do universities generate economic growth across the UK?
- Universities contribute around £130 billion to the UK economy through employing staff and impact on other sectors.
- Between 2014–15 and 2019–20 employment at universities rose by 3.5% – equal to 14,135 jobs. A similar rate of growth over the following five years would see 14,628 new jobs created.
- Estimates suggest that 1.27% of everyone employed in the UK works for a university. In Scotland, nearly 1 in 50 people in work are employed by a university.
- Universities turn research into new businesses. In 2020–21 there were more than 21,000 active spin-outs, start-ups and social enterprises that emerged from UK universities. In the same period businesses born at universities employed an estimated 96,000 people.
- Universities have had nearly 600,000 interactions with businesses and non-commercial partners over the last five years through contract research and consultancy.
- Research from the Department for Education shows that skills and labour – driven by an increasing share of graduates in the Labour market – have been the only factor making a positive and consistent contribution to productivity growth in the UK in recent years, following a significant decline in the contribution of capital investment and business innovation since 2007.
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The positive impact of universities is felt in every region.
Universities in England support more than 815,000 jobs.
North East:
- Universities support 32,000 jobs in the North East
- The overall contribution universities make to the economy in the North East is £3.7 billion
North West:
- Universities support 86,000 jobs in the North West
- The overall contribution universities make to the economy in the North West is £10.9 billion
Yorkshire and the Humber:
- Universities support 74,000 jobs in Yorkshire and the Humber
- The overall contribution universities make to the economy in Yorkshire and the Humber is £9 billion
West Midlands
- Universities support 67,000 jobs in the West Midlands
- The overall contribution universities make to the economy in the West Midlands is £8.6 billion
East Midlands:
- Universities support 53,000 jobs in the East Midlands
- The overall contributions universities make to the economy in the East Midlands is £7.5 billion
South West:
- Universities support 85,000 jobs in the South West
- The overall contribution universities make to the economy in the South West is £9.2 billion
East of England:
- Universities support 77,000 jobs in the East of England
- The overall contribution universities make to the economy in the East of England is £9.4 billion
South East:
- Universities support 118,000 jobs in the South East
- The overall contribution universities make to the economy in the South East is £14.6 billion
London:
- Universities support 223,000 jobs in London
- The overall contribution universities make to the economy in London is £22.3 billion
Estimates based on 2018–19 data from the Higher Education Statistics Agency (HESA).
Media release
Call to back universities as report reveals £116 billion contribution to UK economy
As universities prepare to welcome a new cohort of students, a new report by London Economics has revealed that higher education makes a £116 billion contribution to the UK economy - £130 billion including the spending of international students.
Are there enough jobs for graduates today and in the future?
- More than 11 million extra graduates, in addition to the 15.3 million graduates currently in the UK workforce, will be needed to fill jobs in the UK by 2035 in industries such as computing and engineering, teaching and education, and health.
- 88% of new jobs by 2035 will be at graduate level.
- There are almost one million more professional jobs in the UK than workers with degrees to fill them, and employers are overwhelmingly positive about graduate skills.
- UK universities will provide more than £11.6 billion of support and services to small enterprises, businesses, and not-for-profits.
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Between 2021-2026:
- Universities in Northern Ireland will deliver the equivalent of 410 years of professional development training and education courses to businesses and charities.
- Scottish universities will provide 3,490 years of training.
- Welsh universities will deliver the equivalent of nearly 4,800 years of training.
- In England, universities will provide the equivalent of over 549 centuries (54,936 years) of training.
How do international students benefit the UK economy?
- International students who started higher education qualifications in 2021-22 contributed £14.8 billion to the economy through their spending.
- On average, each of the 650 parliamentary constituencies in the UK is £58 million better off because of the contributions of international students (across the duration of their studies) equivalent to approximately £560 per UK resident.
- Every 11 international students generate £1 million net economic impact for the UK economy