University Of Alabama Sets New Record With $3.4B Economic Impact

TUSCALOOSA, AL — The University of Alabama generated a record $3.4 billion economic impact on the state during the 2023-2024 academic year, according to a new report from the university’s Center for Business and Economic Research in the Culverhouse College of Business.

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The study released on Wednesday found that UA’s statewide impact reached an all-time high, with $2.354 billion directly benefiting the Tuscaloosa metro area.

“At The University of Alabama, we measure our success not only by the achievements of our students, but also by the impact we create across our state and beyond,” UA President Peter J. Mohler said. “These record-setting results highlight how UA fuels economic growth, prepares the workforce and strengthens communities. We are proud to deliver lasting value for Alabama and to build on this momentum together.”

In terms of statewide impact, the report found that for every dollar appropriated by the state, UA generated a $14.80 return, producing a 10.4% annual rate of return on public investment.

The 2023-2024 graduating class is also expected to contribute $1.09 billion more in state income and sales taxes over their careers than they would have without their UA education.

UA’s statewide activity reportedly supported 15,238 jobs and generated $164.8 million in income and sales tax revenue, along with an estimated $235 million impact from the University’s seven home football games.

For the Tuscaloosa metro area, UA's operations supported 13,989 jobs, produced $50 million in local sales taxes, and generated $160.1 million in local spending from home football games.

“With increasing enrollment and employment, UA set record economic impacts on Alabama for academic year 2023-2024 and continued to deliver both tangible and intangible benefits to its graduates and the state that have positive spillovers to the nation and the world,” said Samuel Addy, associate dean for economic development outreach at Culverhouse and senior research economist at CBER.

Beyond its economic footprint, UA says a degree from the institution pays dividends for graduates, with real annual rates of return between 6.7% and 11.5%, depending on degree level.

UA then said marginal annual rates of return range from 6.7% to 23.2% when compared to those with only a high school diploma.

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