University of Alaska has more than $1 billion direct and indirect economic impact in Alaska annually

University of Alaska has more than $1 billion direct and indirect
economic impact in Alaska annually

The annual economic impact of the university includes $714 million in
direct effects and $402 million in indirect and induced effects
according to a McDowell Group study, titled “The Economic Impact of
the University of Alaska 2012.”

“It showcases the extent to which the university, by bringing high
quality learning and workforce development to Alaska, is contributing
to the state’s well being and keeping Alaska competitive in the 21st
century knowledge economy,” said University of Alaska President
Patrick Gamble.

Direct effects are those tied straight to university purchases,
household purchases by employees and student spending. Indirect
effects result from industries doing business with the university.
Induced effects are changes in state economic activity resulting from
the effect of spending university-related payroll dollars in the
Alaska economy. In terms of employment, university spending translates
to 8,247 direct jobs and 7,435 indirect and induced jobs. The
university ranks as Alaska’s fourth largest employer.

According to the McDowell Group study, for each dollar the State of
Alaska invested in UA in FY11, the university generated $3.25 in total
economic activity within the state. And, for each dollar of state
investment in university research, UA generated $5.60 in additional
research revenue. It is clear that as a major driver of economic
activity in Alaska, the university provides a significant return on
investment of public dollars.

UA is a principal source of human capital in Alaska. Spending
generated in support of core UA mission accomplishments, and with the
broad civic engagement of its students, faculty and staff, generates
an irreplaceable contribution to Alaska’s human capital. The McDowell
analysis concluded that the higher educated and workforce-trained pool
of UA graduates accounts for nearly 10 percent of Alaska’s labor force
and almost $2 billion in annual state payroll. Says Gamble, “The total
value added to Alaska by our UA graduates?...Priceless!”

Press release from the University of Alaska