| Practice area: | Education and Labour Markets |
|---|---|
| Client: | University College Birmingham |
| Published: | 28 November, 2022 |
| Keywords: | 2022 economics of education further education higher education Labour Market Economics Public Policy |
London Economics were commissioned by University College Birmingham to analyse the economic and social impact associated with University College Birmingham’s activities in the 2020-21 academic year. Rather than just considering the traditional direct, indirect and induced impacts associated with University College Birmingham’s physical footprint, this analysis also incorporates the economic impact associated with University College Birmingham’s extensive teaching and learning activities, as well as the contribution of University College Birmingham’s international students to the UK economy.
The analysis identified that the total economic impact on the UK economy associated with University College Birmingham’s activities in 2020-21 was estimated at approximately £358 million. Compared to University College Birmingham’s total operational costs of approximately £53 million in 2020-21, this corresponds to a benefit to cost ratio of 6.7:1.
In terms of the components of this impact:
- The impact generated by the spending of University College Birmingham stood at £61 million (17%):
- The majority of this impact (£40 million, 65%) was generated in the West Midlands, with the remaining £21 million (35%) occurring in other regions across the UK;
- The University’s spending supported a total of 550 FTE jobs across the UK economy in 2020-21 (of which 415 are located in the West Midlands);
- The impact of University College Birmingham’s educational exports associated with its international higher education students was estimated at £75 million (21%);
- The majority of this impact (£48 million, 64%) was generated in the West Midlands, with the remaining £27 million (36%) occurring in other regions across the UK
- The spending of the University’s international students supported a further 725 FTE jobs across the UK economy in 2020-21 (of which 510 are located in the West Midlands);
- University College Birmingham’s teaching and learning activities accounted for £221 million (62%) – including the impact associated with the higher education (HE) qualifications, further education (FE) qualifications, and apprenticeship training offered by the University.
A Summary Report of the analysis is available here, and a more detailed Full Report is available here.