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UNB releases economic impact assessment

Author: Communications

Posted on Apr 12, 2012

Category: UNB Saint John

The University of New Brunswick commissioned an Economic Impact Assessment (EIA) in the fall of 2011 to better understand the many ways in which the university impacts the provincial economy. Among the high-level findings from the study:

Return on Investment:

UNB returns $1.06 to the province for every dollar it invests in the institution.

Expenditures:

In 2009-10 UNB’s expenditures included the following contributions to the provincial economy:
  • Total university-related spending equaled $385 million, including direct spending of $311 million, 
student off-campus spending of $62 million, and visitor spending of $12 million for conferences, events, meetings and research.

Economic Impacts

  • Gross Domestic Product (GDP) generated by UNB: $438 million (1.5% of GDP in New Brunswick).
  • There are two jobs created in the community for every job at UNB.

Behind the Impacts

  • UNB attracts 28% of all students from outside the province, representing an “export” of New Brunswick university services. This improves the province’s balance of trade.

Education impacts

  • UNB graduates employed in the province - Approximately 2,939 students graduate each year. Of these, 1,550 (or 52.8%) stay in New Brunswick, and 1,312 are employed.
  • UNB graduates contribute to higher salaries in the province – The approximately 1,312 UNB graduates employed in the province will annually inject $31.5 million in incremental salaries and wages directly into the local economy. That equates to a $1.8 billion lifetime injection (based on a 56-year life expectancy after graduation), with a net present value of $667 million for the New Brunswick economy.
  • UNB graduates employed in New Brunswick contribute more provincial income taxes to the Province – The approximately 1,312 employed graduates in New Brunswick contribute an annual average of $3.5 million in incremental provincial income tax. That equates to $196 million in lifetime incremental provincial taxes paid (based on a 56- year life expectancy after graduation), with a net present value of $98 million for the Government of New Brunswick.
  • UNB graduates contribute to health care savings for the Province – The 1,550 graduates that remain in New Brunswick will draw less health care services and save the Province $47,000 annually. This equates to $2.6 million in lifetime savings (based on 56- year life expectancy after graduation), with a net present value of $1 million for the Government of New Brunswick.
The study was conducted by Gardner Pinfold Consulting Economists Ltd. This study estimates the economic impact of UNB using a combination of a standard approach to economic impact analysis as well as current research results from the literature examining the linkages between higher education and socioeconomic outcomes. Download the full report (PDF)

Contact

For more information, contact: Greg Carriere UNB Communications & Marketing 506-453-4546 gregoire.carriere@unb.ca

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