Report shows UW’s $20.9 billion impact on local and national economy

Photo by Sean Fan

On Oct. 31, UW released its 2024 Economic Impact Study, conducted by UW’s Office of External Affairs in collaboration with Parker Strategy Group. The report details the university’s economic contribution to statewide, local, and national economies in Fiscal Year 2023. 

New data shows that UW generated $20.9 billion in economic output, a 33.1% increase since FY18. This means that UW’s role as an economic engine accounts for one out of every 32 dollars spent in Washington’s economy, whether directly or indirectly.

Statewide, UW contributed $962.6 million in local and state tax revenue. As the fifth-largest employer in Washington, the university sustains 111,951 full and part-time jobs across healthcare, education, research, community services and more. This figure includes both direct employment and jobs created through the multiplier effect. 

UW’s operational and capital spending alone accounted for $18.4 billion in economic activity, fueling industries and local economies. 

Beyond these expenditures, students added $1.8 billion to the state’s economy, with $1.2 billion in direct impact. Visitors, including those attending campus events like football games, contributed $690.1 million, sustaining 4,448 jobs through their spending.

The long-term economic footprint is further amplified by UW’s alums network. With over 375,625 residing and working in Washington, their collective contributions amount to $454.6 billion in ripple effects over their careers, sustaining an additional two million jobs in the statewide economy. Graduates also generated  $33 billion in tax revenue and $11.4 billion locally and $21.6 billion statewide. 

“The most lasting impact we have are our student graduates…” Randy Hodgins, UW’s vice president for external affairs said.

The powerhouse of UW’s economic impact is its research. In FY23, research made $2.6 billion in economic output and supported more than 10,631 jobs statewide. It also secured $1.87 billion in sponsored grants and contracts, including $1.52 billion in federal research funding, ranking as the top public university recipient of federal research dollars.

“We have for many, many years, been the number one public unit, recipient of federal research dollars,” Hodgins said. “So we're really very proud of that.”

Over the past five years, UW has fostered 52 startups through programs like CoMotion, an innovation hub for faculty and students to commercialize research outputs. These startups have reached a cumulative $19.9 billion impact over 36 years, with $8.6 billion generated in the last decade alone. 

The Husky Athletics made $487.5 million in economic impact and sustained 1,990 jobs across the state. With 22 varsity teams competing at the NCAA Division I level within the Big Ten Conference, Husky Athletics attracted thousands of loyal fans to its events. Game-day spending alone generated $178.6 million, with around 748,452 tickets sold throughout the year. 

UW Medicine represents more than half the economic impact, adding 60,717 jobs and $12.5 billion to the state's economy. For instance, Hodgins noted that Harborview Medical Center and UW Medical Center provide nearly $800 million annually in charity care, making it the state's largest provider of uncompensated care. 

According to Hodgins, programs like Airlift Northwest ensure that even the most remote and marginalized communities can access vital healthcare and medical professionals for careers. By transporting patients to Harborview’s Level 1 trauma center, it delivers life-saving care to those who need it the most. 

The five-state WWAMI Medical Education Program tackles rural healthcare shortages by providing physician training tailored to the local needs in Washington, Wyoming, Alaska, Montana, and Idaho.

“They can go wherever they want,” Hodgins said. “Because of this program, we have a higher success rate of having students stay and end up practicing medicine in their own state than a lot of other medical schools around the country.”

Additionally, UW's commitment to civic engagement and "giving back to the community" shines through 1.5 million volunteer hours, driven by students, faculty, and staff, valued at $44.3 million and $22.2 million in charitable donations, culminating in a combined impact of $66.5 million

“We bring students to the campus from all 39 counties,” Hodgins said. “[Not just the big one, so that, you know] so that's another way that we help benefit different areas of the state, by making sure that students, [you know, we're,] we're educating students from ferry county as well as King County.”

The report takes a broad view at UW’s impact, factoring in spending in operations, student contributions, and visitor spending. However, Hodgins noted that the primary source of funding for student education has shifted considerably over the past four decades.

Taxpayer support once covered the majority of the costs, with tuition adding a smaller portion. Today, tuition covers about two-thirds of the total cost, while state funding makes up the remaining one-third.

"It’d be nice if we could even up [public funding and tuition] a little bit so that we weren’t as reliant on tuition,” Hodgins said. “That tuition could remain affordable, particularly for middle class families who don't always qualify for as much financial aid as low income students do.”

As the study highlights, UW’s investments in education, research, healthcare, and civic contributions fuels economic prosperity across every corner of the state and beyond.