Universities’ huge economic impact
WELSH universities have a direct and induced £5.3bn economic impact, new research shows.
An analysis of the higher education sector, commissioned by university umbrella body Universities Wales, also reveals that in the 201920 academic year they were responsible for one in every 20 jobs in Wales.
The eight universities in Wales are Cardiff, Swansea, Bangor, Cardiff Met, Aberystwyth, South Wales, Trinity St David and Glyndwr.
As well as through direct activities, the universities also support the economy through the purchases of services and goods in their supply chains, as well as the on and off campus spending power of staff and students. They also attract substantial numbers of international students, generating £661m for the Welsh economy.
The research, conducted by Viewforth Consulting, showed there were 134,760 students in 2019-20, of which 53% came from Wales, 32% the rest of the UK, 4% the EU and 12% elsewhere in the world.
The reach of the higher education sector is felt in communities throughout Wales – with 22% of the jobs and 20% of the GDP generated in local authority areas without a university.
Universities had a total income of £1.64bn in 2019-20, of which £931m came from tuition fees and education contracts. Other contributions included £218m from HEFCW (Higher Education Funding Council for Wales) and £218m in research grants and contracts.
Through knock-on effects the sector generated an additional £2.1bn in other industries throughout the UK, with the majority (£1.57bn) accruing in Wales.
In 2019-20 it had total outgoings of £1.52bn, with the biggest contribution being staff costs of £873m.
Professor Elizabeth Treasure, chair of Universities Wales, said: “This report clearly illustrates what universities mean for Wales’ economy. From providing access to education and skills to working with business on cutting edge research and innovation, the work that our universities do is closely intertwined with the people and places of Wales.
“What is most notable about the findings of this report is not just the immediate economic impact of the activities our universities carry out, but how our institutions bring benefits right across local communities and, indeed, across Wales.
“As we rebuild and recover from the impact of the Covid-19 pandemic, Welsh universities will continue working with partners across Wales, and embrace the challenges of a changing world. We remain firm in our ambition to grow and sustain a successful, enterprising higher education sector that draws in international expertise and excellence while delivering for the whole of Wales.”
Economy Minister Vaughan Gething said: “I very much welcome this important report, which makes clear the strengths of Wales’ higher education institutions and their vital contribution to Welsh society and to our economy.
“In Wales, we value our universities as drivers of research and innovation, creating and distributing new knowledge which can transform how we live and work. They are a vital part of the skills pipeline, educating and training our people for the jobs of the future, and offering opportunities for lifelong skills development.
“Crucially, our universities are anchor institutions within our local communities, providing or contributing to the employment of one in 20 people in Wales, and playing a key role in local economies.
“I’m particularly pleased Wales outperforms the other UK nations on the proportion of graduate start-ups per capita – with an impressive variety of businesses emerging from Welsh universities. These businesses help us retain our talent, which is vital for Wales’ future economic prosperity.
“Through their teaching, research and innovation and civic engagement activities, universities have a crucial role to play in supporting our recovery plans and programme for government priorities. I look forward to working with them.”