Brice Wallace
Salt Lake Business Journal
Utah’s public higher education system is not only educating minds but also contributing to the state’s economy.
A policy brief recently released by the Kem C. Gardner Policy Institute at the University of Utah indicates that higher ed produces a well-trained workforce and adds to the state’s robust economic performance, in addition to its contributions to social well-being, civic engagement and innovation.
“The Kem C. Gardner Policy Institute’s report demonstrates the profound and multifaceted impact of Utah’s higher education system,” said Geoffrey Landward, Utah commissioner of higher education. “The benefits of higher education extend well beyond campus, and we remain committed to empowering students with the skills and knowledge needed to drive Utah’s economic growth and future opportunities.”
The policy brief indicates that the state’s public higher education system supports approximately 132,000 jobs and contributes $12.1 billion to the state’s GDP. Research universities are especially vital drivers of economic growth, providing 83 percent of the system’s total economic contribution, it says.
Utah ranks third, behind only Colorado and Massachusetts, for the percentage of people between the ages of 25 and 64 who have a postsecondary certification, certificate or degree.
The skilled workforce that Utah’s higher ed system produces includes many graduates receiving degrees matching in-demand jobs within the state. Approximately 72 percent of degrees awarded by the Utah System of Higher Education in 2024 were classified as “high yield” degrees, meaning they feature training for high-wage, high-demand jobs.
Research universities foster a strong innovation ecosystem, resulting in higher education in Utah possessing a significant economic multiplier, magnifying its positive impact on the state’s economy. Utah’s level of innovation ranked highest in the nation, according to a recent study by the Indiana Business Research Center.
People with higher educational attainment enjoy significantly higher incomes, economic stability and improved life quality, with median earnings rising steadily with each level of education, according to the brief.
The report indicates that five years after completion, the typical Utah System of Higher Education graduate earns 10 percent to 64 percent higher wages than the comparison group who do not receive a degree or award. Those with graduate or professional degrees earn an average of $92,000 in Utah, well above the state’s overall median earnings of $52,000. Those with a bachelor’s degree average $63,000. Those figures are from 2023.
Unemployment and poverty rates are substantially lower among those with college degrees. For example, the 2023 unemployment rate for Utahns with a bachelor’s degree or higher was only 1.7 percent, while the overall rate was 2.5 percent in the state. People without a high school diploma had a 3.9 percent unemployment rate.
The 2023 poverty rate in Utah was 6.8 percent, but among those with a bachelor’s degree or higher, it was 3.9 percent. In contrast, those with less than a high school diploma had a poverty rate of 14.4 percent.
Higher education also helps reduce economic inequalities and fosters upward mobility, the brief says. Students with family members holding postgraduate degrees are more likely to complete their postsecondary education. Nationally, 74 percent of people with a college degree achieve a family income higher than their parents.
People who earn postsecondary degrees also are less likely to use public assistance. One example shows that 30 percent of adults ages 25 or older in the U.S. receive Medicaid, compared to 11 percent among those with a bachelor’s degree or higher.
Another benefit of higher education is improved health outcomes, including higher rates of excellent or very good health and greater health care coverage. Approximately 92 percent of Utah adults with a college degree reported good, very good or excellent general health in 2023.
Utahns with higher education also tend to be more involved in their community through significantly higher rates of volunteerism and voter participation. In 2023, 78 percent of Utahns with a certificate, associate degree, bachelor’s degree or post-graduate degree reported always or often voting in state elections. That compares with 53 percent who discontinued high school, earned a high school degree/GED, or attended some college.
“Education plays a crucial role in shaping individuals, communities and our state’s future," said Andrea Brandley, senior education analyst at the Gardner Institute and lead author of the report. “Our research provides a comprehensive overview of how higher education contributes to Utah’s success story.”
The policy brief is available at https://gardner.utah.edu/.