Universities support over 18,000 jobs across city

BIRMINGHAM’S universities support almost 18,000 jobs in the city and add millions of pounds to the local economy, according to new analysis.

The research by Hatch Regeneris for the University and College Union (UCU) found that between them Birmingham’s four universities directly employ 12,640 people and support another 5,270 jobs across the city through their supply chains and the expenditure of staff and students.

Birmingham is one of 25 cities analysed as part of the research looking at the local economic contribution of universities.

Aston University, Birmingham City University, Newman University, and University College Birmingham bolstered the local economy to the tune of £530 million last year through gross value added (GVA).

Researchers could not get a figure for the University of Birmingham.

GVA is the key measure of economic contribution, capturing the total value of goods and services produced locally by the universities through their supply chains and the money spent by employees and students.

But there are fear that there could be a negative impact on the local economy if student numbers drop as a result of the Covid-19 crisis.

UCU general secretary Jo Grady said: “This review shows how significant Birmingham’s universities are to the local economy.

“Universities are vitally important to our society, but their important role in the local economy is often overlooked.

“This study shows that they have a huge impact in creating local jobs, supporting local businesses, and attracting people and organisations to the area.

“The government needs to come up with a comprehensive financial support package to ensure that no university collapses and that local economies do not lose valuable jobs.”

A UCU in April warned of a £2.5 billion loss in income for universities from a drop in student numbers, which would result in a £6 billion hit for the economy.

While a report from the Institute for Fiscal Studies earlier this month predicted that the pandemic would leave some universities struggling to survive.