NORTHAMPTON — The four private colleges in Hampshire County generate more than $1.5 billion in annual economic impact on the Massachusetts economy, including more than 8,000 jobs, according to a report released by the Association of Independent Colleges and Universities.
Although the total economic impact of the four colleges is measured statewide, the AICU report finds that the impact in western Massachusetts is $1.1 billion — about one-sixth of Hampshire County’s total real GDP, according to the latest figures from the Bureau of Economic Analysis. This does not take into account the economic impact of the University of Massachusetts Amherst, a publicly funded university.
The report is the first of its kind to be produced by AICU, which represents 59 private universities and colleges across the Commonwealth. The report was released in March to show Gov. Maura Healey’s new administration how valuable these schools are to the state.
“Higher education is such a crucial part of the Massachusetts economy,” AICU CEO Rob McCarron said in an interview. “It attracts talent, researchers and students from all over the world, but we never really knew what it meant. So we commissioned this report to really examine the concrete data and remind elected officials how important these institutions are.”
The study divided the economic impact of colleges on the state into four categories:
■Operations, which include facility employment opportunities and the purchase of goods.
■Capital, what colleges spend on investments and improvements.
■Supplementary expenses of the students and their visitors.
■Alumni rewards, the added value that graduates of these colleges are likely to earn in the future.
Smith College of Northampton ranked the highest of all private colleges in Hampshire County with $621 million, including support for more than 3,000 jobs in the state, with $621 million.
Among other things, Smith contributes to the local economy, including through significant donations to the City of Northampton’s proposed Community Resilience Hub, as well as to Cooley Dickinson Hospital for the expansion and renovation of its emergency room and mental health services, said Carolyn McDaniel, a spokeswoman for the University.
“We are one of the largest employers in the area and the second largest in Northampton after Cooley Dickinson Hospital,” said McDaniel. “We aim to support the City of Northampton and many local entities through contributions to efforts aligned with our priorities.”
Amherst College came second with an economic impact of $468 million, including support for 2,720 jobs. Mount Holyoke had a $344 million impact including supporting 1,910 jobs; and Hampshire College had an impact of $82 million, including supporting 510 jobs.
“We really wanted to show that the impact extends from one end of the state to the other,” McCarron said. “Each of these schools, each of these institutions and each of these campuses has a really significant economic impact.”
McCarron said he met with Yvonne Hao, Secretary of State for Economic Development, to discuss the report. He said that Hao agreed with the assessment, calling the state’s higher education the “crown jewel” of the Commonwealth, and that AICU is working with the Healey government to develop its economic development strategy.
“We’re in the middle of this process right now, looking at how we can work with the state to attract and retain more talent,” McCarron said. “What can we do to help needy and deserving Massachusetts students and give them an incentive to stay here to attend college?”
The total impact for all 11 private colleges in western Massachusetts, including those in Berkshire, Hampden and Franklin counties, was $3.3 billion, including support for 19,400 state jobs. Statewide, the economic impact of private colleges and universities was $71 billion and supported 320,000 jobs, about one-eighth of the state’s GDP.
Alexander MacDougall can be reached at [email protected].
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