The University of Illinois System generates $24.9 billion a year for the state’s economy and supports more than 225,000 jobs, one of every 37 jobs in the state, according to the findings of a system-commissioned study announced today.
The labor market analytics firm Lightcast tallied the system’s direct spending on operations, construction, hospital and research; the impact of startup and spin-off companies; visitor and student spending; volunteerism; and the increased earning and productivity power of alumni. During the measurement period, fiscal year 2023, the $24.9 billion impact from system activities and alumni amounted to 2.6% of the gross state product — a sum nearly as great as the economic impact of the construction industry in Illinois.
These results reflect the combined contributions of the University of Illinois Urbana-Champaign, the University of Illinois Chicago, the University of Illinois Springfield, and UI Health, whose teaching, research, clinical care and community partnerships power this statewide impact.
“The public has a general sense of the U of I System’s contributions to the state economy, but this report illuminates the system’s significant impact in exquisite depth and detail,” system President Tim Killeen said. “Both qualitatively and quantitatively, we are providing outstanding value to the people of Illinois in ways that might not be evident in a casual view.”
The study also analyzed students’ annual return on investments, finding that U of I System students receive a cumulative value of $4.80 in higher future earnings for every dollar they invest in out-of-pocket expenses and forgone income during their studies. That represents an annual rate of return of 18.1%, which compares favorably to the U.S. stock market’s 30-year average 10.1% rate of return.
“An investment in the U of I System pays strong returns to the state of Illinois, across the board,” Killeen said. “Students come out ahead in the form of greater lifetime earning potential, taxpayers find relief in revenues generated by increased economic activity, and society benefits from individuals’ greater independence and self-reliance.”
Other highlights from the study include:
- A growing number of U of I System graduates are remaining in Illinois – 74%. That is up from 65% in FY 17, adding to the system’s impact on the state economy.
- U of I System graduates working across Illinois added $18 billion in income to the state economy.
- On average, recipients of bachelor’s degrees from system universities who remain in state will earn approximately $72,400 a year, $33,700 more than someone with only a high school diploma.
- Spending on daily operations — including faculty, staff, and services — added $3 billion in income to Illinois’ economy.
- System research spending generated $1.2 billion in added income for the Illinois economy in FY 23.
- Spending by the University of Illinois Hospital & Clinics generated $1.6 billion in added income for the state’s economy.
- For every dollar of public money invested in the U of I System, taxpayers will receive a return of $3.60 over the course of students’ working lives through additional taxes collected on higher earnings and reduced public costs for health care, social services and the justice system.
- U of I System-connected startups added more than $500 million to Illinois’ economy in FY23.
