AKRON, Ohio — The University of Akron contributed $3 billion in income to the region in 2021-2022, generating a positive return on investment for students, taxpayers and the community, according to an economic impact study UA recently commissioned.
Conducted by Lightcast, an international labor market analytics organization headquartered in Boston and Moscow, Idaho, the study concluded the university supports 36,324 regional jobs, or one in every 48 jobs in the school’s service area — Cuyahoga, Portage, Medina, Stark, Summit and Wayne counties.
“We are extremely committed to educating our students and connecting them to world-class employers to help foster continued growth in career earnings,” UA President Gary Miller said in a release. “We also view our role as an economic generator very seriously, rigorously supporting workforce development in the region and championing innovation and entrepreneurship that makes a difference in northeast Ohio and the city of Akron.”
Lightcast broke down the annual rate of return for students earning a college degree, taxpayers helping fund the school and the community investing in UA.
For UA’s 15,077 credit and 2,574 non-credit students, money spent on tuition, books, supplies and student loans, coupled with the loss of earnings while in school, added up to a $248.4 million investment in 2021-2022, the company said.
That translates to $1.7 billion in increased earnings over students’ lives, or $6.70 in earnings for every $1 spent on their UA education, Lightcast said, concluding the annual rate of return for students is 18%.
In 2021-22, taxpayers provided $107.1 million in state and local funding to UA, Lightcast said.
At an annual 9.2% rate of return, taxpayers will receive an estimated $4.90 for every tax dollar spent over the course of students' working lives, Lightcast reported.
In 2021-22, Ohio residents invested $416.5 million in the university, which includes student and university expenses, and student opportunity costs, according to Lightcast.
The value of that investment is an estimated $289.2 million in reduced crime and unemployment assistance coupled with increased health and well-being across the state, Lightcast said. That breaks down to about $18.20 in benefits to the community for every $1 invested in UA over the course of students’ careers.
Also among UA’s contributions are time and talent dedicated to partnering with start-up ventures on research and innovation, adding $10.4 million to the local economy, Lighthouse reported.
Since 2018-2019, UA faculty have received 135 invention disclosures, filed 204 new patent applications and produced 18 licenses, the company said.
In a separate study conducted for the Inter-University Council of Ohio on the economic impact of all state universities, Lightcast found that collectively, Ohio’s 14 public universities contributed $68.9 billion in economic impact in 2021-2022, supporting 866,782 jobs, or one in eight Ohio jobs.
Lightcast conducted a previous impact study for UA in 2018, which can’t be compared equitably to the current results because the company changed its methodology and data input, Lightcast said in the report.
Among the changes, the analytics organization eliminated expenses from depreciation and operations interest per Association for Public Land-Grant Universities guidelines, the company said. Lightcast also now includes data from all alumni younger than 67 who are active in the regional workforce. Previously, the company included only alumni from the past 30 years.
The Economic Value of the University of Akron report is available online for review.