UIC delivers $10.6B economic impact on Illinois, study finds

The University of Illinois Chicago added $10.6 billion to the Illinois economy during fiscal year 2023, according to a new study from labor market analytics firm Lightcast.

The study finds UIC's total economic impact equaled approximately 1.1% of Illinois's total gross state product and supported almost 97,000 jobs. That means one of every 85 jobs in the state was tied to the activities of UIC and its students.

"As an anchor institution in the heart of Chicago, UIC is fueling our state's innovation economy through world-class research, while also serving as a major driver of health care, jobs and community engagement," said UIC Chancellor Marie Lynn Miranda. "Our students experience strong upward social mobility and, in turn, contribute their talents to the industries vital to Illinois and to the many vibrant communities they call home."

The economic impact analysis combines results from several categories, including spending by the university on operations, construction, hospital and research. Other impact categories include UIC entrepreneurial activities, visitor spending, student spending, volunteer contributions and productivity of UIC graduates.

The alum segment accounts for more than half of UIC's overall economic impact, with an estimated $6.8 billion based on higher incomes earned compared to those without a college degreeand their contributions to the economy as members of the Illinois workforce. The average UIC bachelor's degree graduate will earn approximately $32,300 more annually than a high school graduate.

Spending by the University of Illinois Hospital & Clinics, or UI Health, generated $1.6 billion in added income for the state's economy.

UIC's expenditures to support its research activities generated $442.5 million in added income for the Illinois economy, which is equivalent to supporting over 4,000 jobs.

The university's environment for fostering innovation and startup companies is evidenced by Lightcast's measurement of UIC's entrepreneurial impact. In fiscal year 2023, Illinois-based startup companies related to UIC added $357.7 million in income to the state's economy, more than any other university in the U of I System.

In addition to highlighting UIC's positive impact on the state's economy, the study appraised the return on investment UIC generates for students, taxpayers and society:

Students. Every dollar students invest in their UIC education gains them $5.30 in higher lifetime earnings. The corresponding annual rate of return is 19.2%.

Taxpayers. Taxpayers receive an average of $3 in economic return over the course of UIC students' working lives for every tax dollar spent educating students at UIC. This represents an 11.4% annual rate of return for taxpayers, due to higher tax revenues and savings associated with lifestyle changes that reduce social program costs that otherwise would draw from public resources.

Society. For every dollar the public invests in UIC, Illinois will gain an average of $5.50 in benefits during the students' working lives. The state of Illinois will receive an estimated $18.2 billion in added state revenue over the course of the students' working lives for the $3.6 billion that people in Illinois invested in UIC during fiscal year 2023.

UIC's report is part of a University of Illinois System-commissioned study that found the 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.

Contact

Brian Flood 312-996-7681 [email protected] twitter.com/bflooduic