The impact of high education in the City goes beyond educating students; they are vital employers, taxpayers, and drivers of economic activity.
A Major Employer
The higher education sector in Chicago is a significant source of employment, providing jobs for approximately 60,000 individuals in the Chicagoland area. It is the City’s third largest employer, behind the U.S. government and Chicago Public Schools. These jobs range from faculty and administrative staff to support services and research positions, creating diverse opportunities for Chicago residents.
Investing in the Local Economy
AUC member institutions inject billions of dollars into the local economy through payroll, taxes, and operational expenses. In 2022, the nine major private colleges and universities’ total payroll for faculty and staff reached a staggering $3.7 billion, with $2.3 billion going to those living in Chicago. This income fuels local spending, supports businesses, and contributes to the overall health of the Chicago economy.
Taxes and Fees: Contributing to City Services
Private universities in Chicago also contribute significantly to the City’s coffers through taxes, fees, and utilities. In 2022, these institutions paid $35,263,071, directly supporting essential city services such as infrastructure, public safety, and education.
Circulating Dollars Within the City
The economic impact of higher education institutions ripples through the City. Employees spend their earnings at local businesses, universities purchase goods and services from local vendors, and students contribute to the housing and retail sectors. This circulation of dollars creates a multiplier effect, amplifying the economic benefits of having a thriving higher education sector.
Conclusion
Chicago’s colleges and universities are more than just places of learning; they are vital economic actors. Their contributions as employers, taxpayers, and economic catalysts are essential to the City’s continued growth and prosperity.
