New Report: Private Nonprofit Colleges and Universities Generate $838.9 Billion in Annual Economic Impact, Support More Than 4.1 Million Jobs
New analysis shows private, nonprofit colleges and universities strengthen America's workforce, support more than 4.1 million jobs, contribute $535.1 billion to U.S. GDP, and generate $122.2 billion in annual tax revenue.
WASHINGTON, DC (August 4, 2026) — Private, nonprofit colleges and universities generated $838.9 billion in economic impact during fiscal year 2024, supporting more than 4.1 million jobs and contributing $535.1 billion to the nation's gross domestic product (GDP), according to a new report released today by the National Association of Independent Colleges and Universities (NAICU).
The economic impact of private, nonprofit higher education extends well beyond graduation. In fiscal year 2024, more than 1.1 million graduates entered the workforce, generating an estimated $199.4 billion in one-year economic impact and supporting nearly 888,000 additional jobs through the increased earning power associated with higher education credentials.
Prepared by Parker Strategy Group on behalf of NAICU, the report measures the nationwide economic contribution of private, nonprofit colleges and universities, whose impact reaches every state, the District of Columbia, and U.S. territories through workforce development, institutional operations, research and innovation, student and visitor spending, and community engagement.
"Private, nonprofit colleges and universities are an investment that fuels every industry and strengthens every community," said Barbara K. Mistick, president of NAICU. "Each year, our institutions graduate more than 1.1 million students who become the teachers, nurses, engineers, scientists, entrepreneurs, and business leaders our economy depends on. That talent pipeline, combined with the research, innovation, and partnerships our campuses foster, supports more than 4.1 million jobs and generates nearly $839 billion in annual economic activity."
Key findings from the report include:
Support more than 4.1 million jobs—approximately one out of every 39 jobs in the United States.
Graduate more than 1.1 million students each year, strengthening America's workforce. Those graduates generated an estimated $199.4 billion in one-year economic impact and supported nearly 888,000 additional jobs in fiscal year 2024.
Generate $838.9 billion in annual economic output.
Contribute $535.1 billion to the nation's GDP.
Generate $340.2 billion in labor income for American workers and families.
Produce $122.2 billion in federal, state, and local tax revenue.
Account for 2.7% of the U.S. economy, generating approximately $1 out of every $37 in economic activity nationwide.
For comparison, the sector's $838.9 billion economic footprint is similar in scale to major U.S. industries, including mining ($693 billion), utilities ($683 billion), agriculture, forestry, fishing, and hunting ($645 billion), and arts, entertainment, and recreation ($613 billion).
The report also demonstrates how deeply private, nonprofit colleges and universities are woven into their communities. Institutional operations generated $665.5 billion in economic output, while spending by students and campus visitors contributed an additional $173.5 billion to local economies. Nearly 60% of the sector's economic impact occurs beyond campus boundaries through supply chains and household spending. Faculty, staff, and students also contributed an estimated 107.7 million volunteer hours and more than $812 million in charitable giving annually, creating a community benefit valued at $4.56 billion.
Using the same methodology as NAICU's previous economic impact analysis, the new study found that the annual economic impact of private, nonprofit colleges and universities increased from $591.5 billion in fiscal year 2018 to $838.9 billion in fiscal year 2024. After adjusting the earlier findings for inflation and expressing both analyses in 2025 dollars, the sector's economic footprint grew by approximately 11%, representing more than $80 billion in additional annual economic activity.
"The value of private, nonprofit colleges and universities extends far beyond the classroom," said Mistick. "Our institutions educate tomorrow's workforce, advance research and innovation, strengthen local economies, and enrich the civic and cultural life of their communities. They create opportunities that benefit students, employers, and communities every day."
According to Nichole Parker, principal of Parker Strategy Group, "This analysis demonstrates that private, nonprofit colleges and universities are among the nation's most significant economic contributors. Their impact extends well beyond campus through the graduates they prepare, the jobs they support, the businesses they sustain, and the communities they strengthen."
The report uses an IMPLAN economic contribution model and data from the Integrated Postsecondary Education Data System (IPEDS) to measure the direct, indirect, and induced effects of institutional operations, student spending, and visitor spending during fiscal year 2024, with all economic impacts expressed in 2025 dollars.
About NAICU
The National Association of Independent Colleges and Universities (NAICU) serves as the unified voice for the 1,700 private, nonprofit colleges and universities in our nation. Founded in 1976, NAICU is the only national membership organization solely focused on representing private, nonprofit higher education on public policy issues in Washington, DC. NAICU's membership reflects the spectrum of private, nonprofit higher education in the U.S. NAICU's member institutions include major research universities, faith-based colleges, Historically Black Colleges and Universities, Hispanic-Serving Institutions and other Minority-Serving Institutions, art and design colleges, conservatories of music, traditional liberal arts and science institutions, women's colleges, work colleges, two-year colleges, and schools of law, medicine, engineering, business, and other professions.
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Dorian Wanzer