BIRMINGHAM, Ala. – The University of Alabama’s economic impact reached a record high in the 2023-24 academic year, according to a new analysis, reflecting continued growth in enrollment, employment and spending tied to the state’s flagship university.
The report – completed by the Center for Business and Economic Research in UA’s Culverhouse College of Business – outlines both statewide and local impacts, framing UA as one of Alabama’s most significant economic engines.
University officials say the findings show how higher education investment fuels workforce development and long-term tax revenue for the state.
University President Peter Mohler said the numbers demonstrate how the college “fuels economic growth, prepares the workforce and strengthens communities.”
The study states UA generated $3.4 billion in economic impact statewide and $2.4 billion in the Tuscaloosa metro area, both record highs. Analysts tied the increases to growing enrollment, employment and student spending.
Statewide, the university supported 15,238 jobs and produced $164.8 million in income and sales taxes. It also generated $235 million in economic activity from seven home football games.
Researchers estimate that for every state dollar appropriated to UA, Alabama sees $14.80 in return. The graduating class alone is expected to pay $1.09 billion more in lifetime state taxes than they would have without a UA degree.
Economist Samuel Addy said the university’s impact extends beyond its direct footprint, noting that graduates, research programs and out-of-state students contribute long-term benefits to the state economy.
“With increasing enrollment and employment, UA set record economic impacts on Alabama for academic year 2023-2024 and continued to deliver both tangible and intangible benefits to its graduates and the state that have positive spillovers to the nation and the world,” Addy said.
The UA system’s three campuses recently requested a 10% increase in state funding fiscal 2027. Lawmakers will start drafting the state education budget in a few months, but given spending caps set in law, increases above about 5% are unlikely.
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