Not just the ‘school on the hill’: University of Utah a huge contributor to state’s economy

When you hear about fans of the University of Utah, your mind goes automatically to the institution’s successful athletics programs. But the school has other fans, who may root for the Ute teams but see a much broader impact -- to the state’s economy. 

The UofU ranks among the largest and most significant drivers of economic activity in Utah, according to a new report released by the Kem C. Gardner Policy Institute at the school.

The Gardner study found the university contributed $7.6 billion in earnings, $10.3 billion in gross domestic product (GDP) and $18.1 billion in output (total sales) in Utah in fiscal year 2024. Those numbers account for 4.9 percent of total state earnings, 3.7 percent of GDP and 3.6 percent of total output statewide.

The data presented in the analysis focus specifically on the university’s direct spending on education, research and health-related activities and their associated ripple effects. The spending includes operations, capital and construction activity and spending by out-of-state students and visitors.

“The University of Utah’s mission also creates substantial long-term value by developing human capital, strengthening the workforce, advancing innovation and improving community well-being,” Gardner study authors said. Because they can’t be quantified, these broader societal benefits are highlighted but not included in the economic contribution dollar estimates.

“The University of Utah is driving Utah’s future through education, research and engagement that strengthen our economy, benefit our communities and prepare students for lifelong success,” said UofU President Taylor Randall. “New data from the Kem C. Gardner Policy Institute reinforce that this approach is working, advancing a model of higher education with real, measurable impact that improves the lives and health of Utahns.”

Andrea Brandley, senior education analyst at the Gardner Institute and lead author of the report, said, “The University of Utah ranks among the largest and most significant drivers of economic activity in the state. The U also creates substantial long-term value by developing human capital, strengthening the workforce, advancing innovation and improving community well-being.”

Founded in 1850, the University of Utah serves as the state’s flagship higher education institution. The school hosts world-class research, education and medical care, as well as its well-established societal impact. The institution offers diverse undergraduate and graduate programs across multiple disciplines; operates several hospitals and clinics; houses many research institutes and centers; and serves the state through education, research and health care. Headquartered east of downtown Salt Lake City, the UofU’s physical presence extends to 37 cities and 15 counties in Utah with additional locations across the United States and worldwide.

Gardner researchers found that nearly half of all University of Utah revenue represents new money to Utah’s economy. This includes about a third of campus revenue, 55.2 percent of hospitals and clinics’ revenue and 69 percent of non-education component unit revenue. Hospitals and clinics account for nearly half of the university’s total out-of-state revenue, driven primarily by out-of-state patient care, Medicare and the federally funded portion of Medicaid.

More than a quarter of the external revenue comes from component units, largely ARUP Laboratories, a national, nonprofit academic reference laboratory located on the UofU campus. The largest out-of-state revenue sources for campus-related activities come from federal grants and contracts and tuition and fees from out-of-state students and in-state students receiving federal aid.

Key among the economic effects on the state is the university’s employment of Utah’ workers. In fiscal year 2024, the year for which data were available for the report, the UofU directly employed 44,801 individuals across its campus, health care system and component units, making it the second-largest employer in the state. The report found that the school and its subsidiary operations supported nearly 100,000 jobs in Utah, representing 4.1 percent of jobs statewide.

With its primary role as an institution of higher learning, the UofU enrolled more than 35,000 students across more than 300 degree and certificate programs during the 2023-24 academic year and awarded more than 9,000 degrees and certificates. These graduates support Utah’s workforce with nearly three-quarters of graduates employed in-state five years after graduation.

The University of Utah is a nationally recognized R1 research university and member of the Association of American Universities (AAU). The Carnegie Classification of Institutions of Higher Education designates R1 status to doctoral universities engaged in the highest levels of research activity, reflected in research expenditures, staffing and the number of doctoral degrees awarded. As an R1 university, the UofU attracts substantial research funding as it advances innovation in its labs and research centers.

The university expended more than $700 million on research-related activities in FY2024, with approximately two-thirds of funding from federal sources, bringing new revenue into Utah. This spending resulted in an economic contribution of 12,572 jobs, $557 million in earnings, $768 million in GDP and $1.5 billion in output, according to the Gardner study.

“Beyond the economic contribution, the U’s students, employees and communities benefit from workforce quality and development, research and commercialization, student experience and community support and services,” Gardner authors concluded. They cited establishments such as the UofU’s Natural History Museum, Red Butte Gardens, Pioneer Theatre Co. and other entities contributing to the state’s cultural identity.

The full report, “The Economic Contribution of the University of Utah,” is available at the Gardner Institute website, gardner.utah.edu.