The National Association of Independent Colleges and Universities (NAICU) commissioned an economic and community impact study to highlight the contributions of private, nonprofit higher education institutions in the United States. Conducted by Parker Strategy Group, this analysis leverages IPEDS data to quantify their economic influence across Alabama. The study presents findings for fiscal year 2024 (FY24), offering a snapshot of the annual aggregate impact of private, nonprofit higher education on Alabama's economy.
Private, nonprofit colleges and universities in Alabama contributed $2.4 billion to the economy through operations, employment, and wages. They supported 14,614 jobs as a result of daily expenditures and workforce activity. Workers at these institutions earned a combined $898.5 million in labor income. Additionally, private, nonprofit institutions generated $340.1 million in total tax revenue across local, state, and federal levels.
Economic Indicators (FY24)
|
Impact |
Employment |
Labor Income |
Value Added |
Economic Impact |
|
Direct |
8,765 |
$485.4M |
$716.6M |
$1.0B |
|
Indirect |
1,939 |
$138.8M |
$255.0M |
$508.3M |
|
Induced |
3,910 |
$274.4M |
$515.0M |
$873.0M |
|
Total |
14,614 |
$898.5M |
$1.5B |
$2.4B |
Local, State, and Federal Tax Impacts (FY24)
|
Impact |
Sub County General |
Sub County Special Districts |
County |
State |
Federal |
Total |
|
Direct |
$9.7M |
$9.5M |
$6.4M |
$33.0M |
$111.4M |
$169.9M |
|
Indirect |
$3.0M |
$3.0M |
$2.0M |
$10.7M |
$34.1M |
$52.8M |
|
Induced |
$8.4M |
$8.4M |
$5.6M |
$26.6M |
$68.4M |
$117.4M |
|
Total |
$21.1M |
$20.8M |
$13.9M |
$70.3M |
$213.9M |
$340.1M |
Source: Parker Strategy Group