A new report by State Comptroller Thomas P. DiNapoli highlights the higher education sector’s importance to New York’s local economies and to the state’s overall economic health. The state’s 290 degree-granting, postsecondary institutions employed over 296,000 people, paying wages of around $26.5 billion in 2023, but the sector still has over 13,000 fewer jobs since the pandemic.
“The higher education sector brings tremendous value to the state and regional economies through employment, wages, student spending and more,” said DiNapoli. “These institutions of learning also foster long-term economic growth by creating a skilled workforce and stimulating innovation. It is essential that the state attract and retain the educators and students who can bring their talents to the various sectors of our economy.”
Consumer spending on higher education in the state totaled $15.7 billion and spending on research and development (R&D) by colleges and universities totaled $8.3 billion in 2022. New York ranks third nationally for consumer spending on higher education, behind California and Texas, with total spending increasing 12.2% in 2022.
Employment and Wages
As in other states, however, some of New York’s higher education institutions have faced challenges. During the COVID-19 pandemic, employment at the state’s colleges and universities fell by just over 22,000 jobs through 2021, a 7.1% drop from 2019. As of 2023, there were 13,090 fewer jobs than 2019.
In 2023, average annual wages paid by the state’s colleges and universities were $73,396 compared to average annual wages of $91,320 for all sectors statewide. The average wage at public institutions, $72,200, was slightly lower than the $75,100 average at private institutions. Private colleges and universities provide nearly two in every three jobs in this sector, and New York leads the nation in private higher education employment.
Regional Impact
Higher education provides sizable employment in many areas across the state, and changes in employment at these institutions can affect local economies. New York City has the greatest number of jobs in this sector (125,931) but the Southern Tier has the highest share, 7.9%, as it contains more than a dozen postsecondary institutions, including large campuses such as Cornell and Binghamton universities.
None of the regions had fully recovered the jobs lost in the higher education sector in 2020 and 2021. The most impacted was the Mid-Hudson region, where employment in 2023 was 12.1% below 2019 levels. The Southern Tier fared the best but was still 3.6% below.
Since 2021, six private higher education institutions have closed, resulting in losses of 2,235 permanent jobs and $167.8 million in payroll. These closures also have a negative impact on businesses in the areas surrounding these institutions, such as entertainment venues and restaurants.
Economic Development and Higher Education
Several of New York’s colleges and universities prioritize R&D. The state has programs, including the Center of Excellence (COE) and Center of Advanced Technology (CAT) programs, which provide monetary support for R&D and act as a conduit for translating such R&D into new products and businesses. The state provides funding to 16 COEs operating at 14 colleges and universities and 15 CATs at 13 institutions across New York. According to the Empire State Development Corp., these programs had an economic impact of nearly $3.2 billion from 2019 to 2022.
Analysis
Economic Policy and Insights: Economic Impact: Higher Education
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