University of Washington a positive force in local economy

The University of Washington (UW) generated $20.9 billion and  111,951 jobs statewide in 2023.

An economic contribution analysis by Parker Strategy Group for the last fiscal year was released last week.

“These numbers clearly demonstrate the University of Washington’s role as a powerhouse of innovation and economic growth for our state,” said Gov. Jay Inslee. “By driving job creation, research breakthroughs, and community development, as well as educating tomorrow’s leaders, the UW delivers on its public mission for all Washingtonians. This incredible contribution underscores the vital role public research universities play in building a thriving, dynamic economy.”

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The analysis shows a significant increase in the UW’s economic contribution over the past decade, rising from $15.7 billion in 2018 to $20.9 billion in 2023. Similar reports in 2015 valued the UW’s impact at $12.5 billion, and $9.1 billion in 2009.

“The University of Washington serves the people and communities throughout Washington in many ways: creating opportunity for students, training vital health care providers and other professionals, and advancing research and innovation in partnership with communities and industry,” said UW President Ana Mari Cauce. “As this report makes clear, the UW is making an impact that betters our state’s economy and improves the health and lives of everyone we serve. We are proud to contribute and to help make all people in Washington thrive.”

The study measured the economic contribution of UW operations, including its campuses and projects in the Puget Sound region, Seattle-Tacoma-Bellevue Metropolitan Statistical Area, and across the state of Washington.

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“The UW continues to grow its impact year over year in the city and the state. Continued economic growth is not a foregone conclusion for colleges and universities across the U.S. Once again, the UW shows that it is a sustainable economic driver that is making a significant economic and societal impact on Washington,” said Nichole Parker, managing principal of Parker Strategy Group.

Among the findings in the study:

• The $20.9 billion total economic impact of the UW in fiscal year 2023 included $10.3 billion in direct and $10.6 billion in indirect and induced spending. This total resulted from operational, student, visitor, and capital spending (three-year average), and payroll and benefits paid to employees.
• The UW supported or sustained a total of 111,951 jobs — one out of every 34 jobs in the state.
• Through its local spending and the jobs it supported or sustained, the UW generated $962.6 million in state and local taxes.
• UW staff, faculty, and students contribute an estimated $66.4 million annually in charitable giving and volunteerism.
• The UW supported or sustained $1 out of every $32 in Washington’s economy.
• A large portion of the UW’s overall effect on the state’s economy is attributed to UW Medicine, which has an annual economic impact of $12.5 billion, supports or sustains 60,717 jobs, and generates $588.3 million in state and local tax revenue.

UW’s research enterprise continues to be a driver of impact and discovery. The UW’s $1.87 billion in sponsored research drives $2.6 billion of UW’s overall impact. The UW receives more federal research dollars than any other U.S. public university, according to the National Science Foundation’s Higher Education Research and Development (HERD) survey.

The study also analyzed the individual impact of the UW Bothell and UW Tacoma campuses. UW Bothell’s fiscal year 2023 economic impact totaled $394.2 million in the state of Washington, with 2,539 jobs supported or sustained. UW Tacoma accounted for a $359 million impact in the state of Washington and supported or sustained a total of 2,277 jobs.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here.