UK universities’ contributing more and more to economy

UK universities’ contribution to the UK economy has increased by 24%, according to new research.

The latest, fifth, study published by Universities UK found that, in 2011-2012, the higher education sector in Great Britain generated over £73bn, in both direct and indirect effects. The sector has increased its share of the GDP to 2.8% – up from 2.3% in 2007 – and now accounts for 2.7% of all employment – up from 2.6 in 2007. This is equivalent to 757,268 full time jobs, of which 18% can be attributed to the recruitment of non-EU students. Of these, the sector directly employed 378,250 people.

The study estimates that the sector generated £10.7bn of export earnings, which includes £3.4bn off-campus spending and £3.2bn spent on fees and accommodation, both by non-EU students. In total, the sector received £5.7bn in fees from non-UK students and research and consultancy income from international sources together with other operating income such as that from residence and catering services, which equates to 20% of the sector’s income. 

Meanwhile, the total revenue from all UK public sources amounted to £13.6bn, or 49% of all income.

Professor Sir Christopher Snowden, President of Universities UK, said: “It is clear that universities are making an increasingly significant contribution to the UK economy, both in terms of contribution to GDP and creating jobs. The sector also attracts significant investment from overseas.”

It is important to note that this latest data is based on figures from before the trebling of fees, and it remains to be seen what, if any, effect this change has had on the higher education sector.