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September 23, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Report finds Fairfield County’s independent universities have $5.58B impact on local economy

Fairfield County’s three independent schools of higher learning — Sacred Heart University, Fairfield University and the University of Bridgeport — contributed more than $5.58 billion in total economic impact to the local economy, according to a new report from the Connecticut Conference of Independent Colleges (CCIC) covering 2017.

The CCIC report measured total economic impact in terms of direct spending by the schools and its employees, students, alumni and visitors, as well as induced economic impact from additional employment and expenditures of local business that resulted because of the direct spending.

“The induced spending represents the sum of the multiplier effects that result when money is imported into a regional economy,” explained Mark Paul Gius, professor of economics at Quinnipiac University, who prepared the report for the CCIC. “Due to this imported money (direct spending), local businesses must hire additional workers who then must purchase more goods and services in the area. These additional purchases of goods and services induce even greater increases in employment and additional increases in the local purchases of goods and services. The sum of all these rounds or cycles of spending is induced spending. The total economic impact is the sum of the direct and induced spending.”

During 2017, the CCIC determined that Sacred Heart University generated a $2.35 billion total economic impact, through $1.4 billion in direct spending — which includes $99.4 million in direct spending by students — and $948 million in induced spending. The university was credited with creating 17,121 jobs, with Connecticut being home to 26,078 of its alumni.

The CCIC found Fairfield University generated a $1.97 billion total economic impact, through $1.18 billion in direct spending — which includes $44.6 million in direct spending by students — and $795 million in induced spending. The university was credited with creating 14,356 jobs, with Connecticut being home to 20,000 of its alumni.

The report noted that the University of Bridgeport generated a $1.26 billion total economic impact, through $753 million in direct spending — which includes $66.9 million in direct spending by students — and $507 million in induced spending. The university was credited with creating 9,157 jobs, with Connecticut being home to 18,074 of its alumni.

The CCIC concluded that its 11 member institutions had a $33.2 billion economic impact on Connecticut in 2017, with $20.4 billion in direct spending — including $739 million in direct spending by students — and $12.8 billion in induced spending. The CCIC member institutions were credited with creating 257,939 jobs, and 220,471 of its alumni live in Connecticut.