A report released by the New York City Economic Development Corporation (NYCEDC) has outlined the substantial economic contributions of the higher education sector in New York City, estimating an annual generation of approximately $35 billion and the provision of 140,000 jobs. Titled “Academia in New York City: Shaping the Future of NYC’s Economy,” the report emphasizes the city’s status as a prominent hub for higher education, with nearly one million recent graduates and current students actively supporting the local workforce.
Economic Impact of Higher Education
The higher education sector plays a critical role in facilitating economic mobility, advancing research, fostering startup innovation, and driving overall economic development in the city. Key findings from the NYCEDC report include the following:
- New York City’s higher education sector generates over 140,000 jobs, comparable to employment numbers in the construction and real estate industries, which employ 141,000 and 137,000 individuals, respectively.
- The metropolitan area is home to more than 100 higher education institutions serving upwards of 503,000 students, making it the largest concentration of academic institutions in the United States.
- On average, 150,000 degrees have been awarded annually in the past decade, with a notable emphasis on STEM-related disciplines.
- Between 2021 and 2024, approximately 490,000 graduates from out-of-state institutions migrated to New York, significantly outpacing the next leading destination, Los Angeles.
- About 66% of graduates from metropolitan area schools between 2014 and 2024 continue to work in the region.
- Since 2001, the city has granted around 4,800 patents derived from university research, with a predominant focus on life sciences.
- From 2010 to 2021, nearly 500 startups were founded by researchers or alumni from New York City universities.
- Thirteen of the top 20 U.S. colleges for economic mobility are located within New York City.
Official Responses
Responses from city officials indicated appreciation for the report’s findings. First Deputy Mayor Maria Torres-Springer highlighted the essential role of academic institutions in shaping the city’s economy, particularly in terms of talent retention and job creation. NYCEDC President Andrew Kimball acknowledged the significant economic and innovative contributions of the higher education sector to the city.
Encouraging Educational Expansion
NYCEDC engages with both local and global educational institutions to encourage their expansion within New York City. Significant developments include Cornell Tech, which has been instrumental in the formation of numerous startups and is anticipated to generate a $1.5 billion economic impact by 2030. Institutions such as Yeshiva University and New York University are also pursuing expansion plans, reinforcing New York City’s attractiveness for educational advancements.
Conclusion
The report’s findings were compiled using various data sources, including employment statistics from the New York State Department of Labor, along with insights from university leaders and education sector representatives, highlighting the integral role of academic institutions in the economic landscape of New York City.
Source: New York City Economic Development Corporation.